Data Centers in Bandar Lampung
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Bandar Lampung – Indonesia's Emerging Digital Port
Executive Summary
Bandar Lampung is an emerging data center market for businesses requiring low-latency access to the millions of consumers and enterprises in southern Sumatra. For companies operating in Indonesia, it offers a compelling secondary location away from the primary Jakarta hub, improving application performance and disaster resilience for a critical regional economy.
Bandar Lampung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via private network extension to the nearest hub, Jakarta. |
| Power Cost | IDR 1,350.00 – 1,900.00/kWh | Competitive regional pricing supports operational efficiency. |
| Disaster Risk | Moderate (4.5/10) | Notable seismic and flood risks require careful site selection. |
| Tax Incentives | Yes | DC-specific concessions are available in designated economic zones. |
| Sales Tax | 12% VAT – as of September 2025 | The standard national rate applies to goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market has a developing mix of national and local carriers, with at least one carrier-neutral facility available as of September 2025. This environment provides foundational options for redundancy and private network connections.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Bandar Lampung as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via private network extensions or IP transit to facilities in Jakarta. This is a common and reliable architecture for edge markets.
Internet Exchange Points (IXPs) Public peering is limited in Bandar Lampung. Most traffic exchange is handled through private interconnects within colocation facilities or is routed through the national internet exchanges located in Jakarta.
Bare Metal Bare metal server options are available through colocation providers in the region. Deployments from global providers like Hivelocity can be facilitated within local data centers to meet specific performance and hardware requirements.
Power Analysis
Average Cost Of Power Industrial power rates in the region range from approximately IDR 1,350.00 – IDR 1,900.00/kWh as of September 2025. This competitive pricing makes it an economical choice for running compute-intensive workloads that serve the local Sumatran market.
Power Grid Reliability The local power grid is adequate for commercial use, but data centers in Bandar Lampung do not rely on it for uptime. Facilities are built with significant power redundancy, including multiple substations, on-site fuel storage, and banks of UPS systems and generators to ensure continuous operation.
Market Access, Business & Tax Climate
Proximity To Key Business Districts As the capital of Lampung province and a major port, data centers here are positioned to serve local government, agricultural technology, manufacturing, and logistics industries. This proximity enables real-time data processing and supports local digital transformation.
Regional Market Reach Bandar Lampung provides a crucial digital foothold for serving the entire southern Sumatra region. Deploying infrastructure here gives businesses a significant latency advantage for delivering services to millions of end-users compared to hosting from Jakarta or Singapore.
Tax Advantage For Data Centers Indonesia offers specific tax incentives for data centers operating within designated Special Economic Zones. These programs provide concessions and regulatory relief that can lower capital expenditures and reduce the long-term cost of operations.
Natural Disaster Risk
Bandar Lampung has a Moderate natural disaster risk profile, with an INFORM Risk score of 4.5 out of 10 as of September 2025.
The primary environmental threats requiring consideration in facility design and site selection are all related to the region's coastal and tectonic location. Key risks include high exposure to tsunami, earthquake, river floods, and coastal flooding. Modern data centers in the area are engineered to mitigate these specific risks.
