Data Centers in Bandung
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Bandung – Emerging Digital Hub for Indonesia
Bandung is a key secondary data center market in Indonesia, offering a compelling alternative to Jakarta for disaster recovery and serving the nation's large, digitally-active population. Its strategic location provides low-latency connectivity to major industrial zones, making it an ideal choice for enterprises requiring resilient infrastructure to support growth and ensure business continuity across Southeast Asia's largest economy.
Bandung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national and regional connectivity, with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud access is in Jakarta; private network extensions are available. |
| Power Cost | IDR 1,500.00-1,650.00/kWh | Sourced from a fossil fuel-heavy national grid with growing renewable contributions. |
| Disaster Risk | Moderate (4.5/10) | Primarily exposed to seismic and flood risks, requiring robust facility engineering. |
| Tax Incentives | Yes | DC-specific concessions and exemptions are available for operations in designated zones. |
| Sales Tax | 12% VAT | Standard national value-added tax rate, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a major Indonesian city, Bandung supports a healthy ecosystem of national and regional carriers. The market features several carrier-neutral facilities, providing access to over 25 telecommunication providers as of September 2025. This ensures competitive pricing and resilient network design options.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Bandung's data centers as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via the primary interconnection hub in Jakarta. Secure, private network extensions are commonly used to establish reliable links to these cloud regions.
Internet Exchange Points (IXPs): While most hyperscale peering occurs in Jakarta, local IXPs like the Indonesia Internet Exchange (IIX) have points of presence that facilitate efficient local traffic exchange. This reduces latency for domestic users by keeping data within the country.
Bare Metal: Bare metal server options are available in the region, primarily through providers located in nearby Jakarta. These services, offered by companies such as Hivelocity and phoenixNAP, give businesses dedicated compute resources for performance-intensive workloads.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Bandung area are estimated between IDR 1,500.00 and IDR 1,650.00 per kWh, as of September 2025. Indonesia's national grid is approximately 81% powered by fossil fuels, with renewables like geothermal and hydro making up the remainder. Stable and predictable power costs are crucial for managing operational expenditures in large-scale deployments.
Power Grid Reliability: The power infrastructure serving Bandung's primary industrial and data center zones is generally reliable. Modern data centers are supported by redundant connections to the national grid and feature robust on-site power generation and UPS systems to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in and around Bandung provide low-latency access to the city's significant textile and manufacturing industries, as well as its growing technology and education sectors. Proximity is essential for applications requiring real-time data processing for industrial automation and digital services.
Regional Market Reach: Bandung serves as a strategic disaster recovery site for businesses operating in Jakarta and provides effective coverage for West Java, home to over 49 million people. Its location is ideal for distributing content and services to a significant portion of Indonesia's population.
Tax Advantage For Data Centers: Indonesia offers specific tax incentives for data centers operating within designated Special Economic Zones (SEZs). These benefits include potential relief from certain taxes and import duties, directly lowering the capital and operational costs of establishing a digital presence.
Natural Disaster Risk
Bandung has a moderate overall disaster risk profile, with a score of 4.5 out of 10, as of September 2025. The primary environmental threats are driven by the region's geography and geology.
Key natural hazards include:
- Earthquake: High risk (8.9/10) due to proximity to active tectonic plates.
- River Flood: High risk (8.4/10) affecting low-lying areas, particularly during monsoon season.
- Coastal Flood: High risk (8.1/10) for the broader national region, though the direct impact on inland Bandung is indirect.
- Tsunami: A significant national risk (9.3/10), but Bandung's inland location mitigates direct threats.
- Drought: Moderate risk (3.4/10).
