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Data Centers in Bandung

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Bandung – Strategic Colocation for the Indonesian Market

Bandung is an emerging data center market ideal for enterprises targeting Indonesia's massive population and for organizations seeking a robust disaster recovery location outside of Jakarta. Its proximity to the capital, coupled with a developing infrastructure, provides a compelling alternative for deploying latency-sensitive applications and ensuring business continuity.

Bandung: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGood regional connectivity, though reliant on Jakarta for international routes.
Direct Cloud On-Ramps0 – as of September 2025The nearest cloud access hub is Jakarta; private connectivity is available.
Power CostIDR 1,550.00–1,800.00/kWhA competitive rate for the region, though grid mix is primarily fossil fuels.
Disaster RiskModerate (4.5/10)Notable seismic and flood risks require careful facility selection and planning.
Tax IncentivesYesDC-specific concessions and exemptions are available for facilities in designated areas.
Sales Tax12% VAT – as of September 2025The standard Value Added Tax rate applied to services.

Network & Connectivity Ecosystem

Bandung's connectivity ecosystem is growing, serving as a secondary hub to the primary Indonesian interconnection point in Jakarta. With four data centers operating as of September 2025, the market offers sufficient capacity for regional deployments.

Carrier Density & Carrier Neutrality The market is served by a growing number of national and regional carriers. Carrier-neutral facilities provide the primary access points for network diversity, allowing customers to choose from multiple providers to optimize cost and performance.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Bandung as of September 2025. Businesses connect to cloud providers primarily through dedicated links to facilities in Jakarta, where all major cloud regions are accessible. Private network extensions offer secure, low-latency access to AWS, Google Cloud, and Microsoft Azure.

Internet Exchange Points (IXPs) Public peering is limited within Bandung itself. Most network traffic is exchanged through private peering arrangements or routed via the Indonesia Internet Exchange (IIX) located in Jakarta.

Bare Metal Bare metal server options are available in the region, typically through providers with a presence in Jakarta that can serve Bandung workloads. Services from providers like Hivelocity and Leaseweb offer dedicated compute resources for performance-intensive applications.

Power Analysis

Average Cost Of Power Industrial power pricing in Bandung is estimated to be between IDR 1,550.00–1,800.00/kWh as of September 2025. This competitive pricing helps manage operational expenses for high-density compute deployments. Indonesia's power grid is approximately 81% fossil fuels and 19% renewables.

Power Grid Reliability The power grid serving Bandung's industrial and commercial zones is generally stable. Data centers in the area are supported by redundant power feeds and substations, with standard N+1 or 2N UPS systems and generator backup to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Bandung is the capital of West Java, Indonesia's most populous province. Data centers here provide low-latency access to a large consumer market, numerous universities, and significant industrial estates focused on textiles and manufacturing.

Regional Market Reach Strategically located about 150 km southeast of Jakarta, Bandung is an excellent site for disaster recovery and business continuity for operations based in the capital. It effectively serves the entire West Java population of nearly 50 million people.

Tax Advantage For Data Centers Indonesia offers tax incentives for data centers operating within designated Special Economic Zones (SEZs). These programs provide significant financial benefits, including tax relief and other regulatory concessions, which lower the total cost of ownership for operators and their customers.

Natural Disaster Risk

Bandung has a moderate natural disaster risk profile, with an overall INFORM Risk score of 4.5 out of 10 as of September 2025. While the overall risk is manageable, facilities must be engineered to withstand specific regional hazards.

Key risks for this area include:

  • Earthquake: High risk (8.9/10) due to proximity to active fault lines.
  • River Flood: High risk (8.4/10) affecting low-lying areas during monsoon season.
  • Epidemic: Moderate risk (7.4/10), common to densely populated urban centers.
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