Data Centers in Bandung
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Bandung – Strategic Hub for Indonesian Digital Growth
Executive Summary
Bandung is a key emerging data center market in Indonesia, ideal for enterprises targeting the country's large and growing digital economy. Its primary value is as a robust disaster recovery location for operations based in Jakarta, providing geographic separation while maintaining low-latency connectivity. This strategic position helps ensure business continuity and resilience for critical applications serving the entire Java region.
Bandung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, primarily reliant on Jakarta for international routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud access hub is Jakarta; private connectivity is available. |
| Power Cost | IDR 1,550.00–1,800.00/kWh | A competitive rate for the region, though the grid mix is mainly fossil fuels. |
| Disaster Risk | Moderate (4.5/10) | Notable seismic and river flood risks demand careful facility and resiliency planning. |
| Tax Incentives | Yes | DC-specific concessions and exemptions are available for facilities in designated areas. |
| Sales Tax | 12% VAT – as of September 2025 | The standard Value Added Tax rate is applied to services. |
Network & Connectivity Ecosystem
Bandung's connectivity ecosystem is developing, positioned as a secondary hub to Jakarta, which serves as Indonesia's primary interconnection point. The market features four data centers as of September 2025, offering adequate capacity for regional and disaster recovery deployments.
Carrier Density & Carrier Neutrality: The market is served by a growing number of national and regional carriers. Carrier-neutral facilities are the main access points for network diversity, enabling customers to optimize for cost and performance across multiple providers.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Bandung as of September 2025. Businesses typically connect to cloud providers via dedicated links to facilities in Jakarta, where major cloud regions for providers like AWS, Google Cloud, and Microsoft Azure are accessible through private network extensions.
Internet Exchange Points (IXPs): Public peering in Bandung is centered around the Indonesia Internet Exchange - Jawa Barat (IIX-Jabar), a regional IXP managed by the Indonesian Internet Service Provider Association (APJII). This exchange facilitates efficient local traffic routing, reducing latency for users in West Java. Most national and international traffic is exchanged through private peering or via the main Indonesia Internet Exchange (IIX) in Jakarta.
Bare Metal: Bare metal server options are available in the region, usually through providers with a presence in Jakarta that can serve workloads in Bandung. Services from providers such as Hivelocity offer dedicated compute for performance-critical 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 expenditures for high-density compute deployments. Indonesia's national power grid is generated from approximately 81% fossil fuels and 19% renewables.
Power Grid Reliability: The national power grid faces challenges with aging infrastructure, particularly outside of primary urban centers. However, data centers in Bandung's key industrial areas are supported by well-engineered, redundant power feeds from multiple substations. Standard facility designs include 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 industrial estates focused on textiles, manufacturing, and the creative economy. Key business areas include Jalan Riau, Dago, and the city center around Gedung Sate.
Regional Market Reach: Located approximately 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 Greater Bandung metropolitan area of over 11 million people and the entire West Java region.
Tax Advantage For Data Centers: Indonesia offers significant tax incentives for data center investments, including potential tax holidays and exemptions, particularly for facilities located in Special Economic Zones (SEZs). These programs are designed to lower the long-term cost of ownership and attract foreign investment into the country's digital infrastructure.
Natural Disaster Risk
Overall disaster risk in Bandung is rated as Moderate (4.5/10) as of September 2025. While the overall risk is medium, the area has high exposure to specific natural hazards that require careful site selection and infrastructure planning.
The most significant natural risks for the region include:
- Tsunami (9.3/10): This is a national-level risk for Indonesia. While Bandung is inland, a major coastal event could disrupt national infrastructure and supply chains.
- Earthquake (8.9/10): The region is seismically active, making earthquake-resistant facility design a critical requirement for uptime.
- River Flood (8.4/10): The city lies in a river basin, exposing low-lying areas to significant flood risk during heavy rainfall.
- Coastal Flood (8.1/10): Similar to tsunami risk, this is an indirect threat reflecting national vulnerability that could impact regional logistics and connectivity.
