Data Centers in Batam

Batam – Indonesia’s High-Performance Digital Bridge to Singapore

Batam serves as the essential redundancy site for the Singapore market, providing a resilient landing point for international subsea fiber. This location is purpose-built for enterprises looking to capture Indonesian digital demand while keeping critical infrastructure physically close to regional financial hubs. Utilizing Batam secures low-latency access to 270 million consumers without the high costs of land and power found in neighboring Tier 1 markets.

Batam: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 15 as of January 2026. The local ecosystem features approximately 15–20 carriers providing diverse fiber paths between local facilities and international landing stations. Most sites operate under neutral policies, allowing for flexible interconnection and diverse routing to Singapore and Jakarta.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of January 2026. There are no direct on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure located on the island. Primary access is handled via private extensions to Singapore, the nearest major cloud hub. These connections offer sub-millisecond latency due to the short physical distance between the two points.

Internet Exchange Points (IXPs): The Batam Internet Exchange (BIX) facilitates local traffic exchange to keep regional data within the domestic network and reduce transit costs for local users.

Bare Metal: Resilient bare metal services are available through regional specialists and global providers like Hivelocity and Latitude.sh, providing high-performance compute options without the overhead of virtualization.

Power Analysis

Average Cost Of Power: $0.08–$0.12/kWh as of January 2026. This pricing structure offers a clear financial advantage for high-density deployments that would be cost-prohibitive in neighboring markets. The generation mix consists of approximately 81% fossil fuels and 19% renewables, including hydro and geothermal sources.

Power Grid Reliability: The local grid is purpose-built for industrial growth, featuring redundant substation support for major digital parks. Reliability is managed through infrastructure that services Special Economic Zones, ensuring consistent uptime for critical workloads.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are primarily situated within Nongsa Digital Park, which acts as a bridge for tech companies operating between Indonesia and Singapore. This proximity allows for rapid hardware deployment and technician access from regional headquarters.

Regional Market Reach: Batam provides a low-latency gateway to over 270 million consumers in Indonesia. It is a vital node for serving the Riau Islands and the broader ASEAN region with localized content and services.

Tax Advantage For Data Centers: Designated Special Economic Zones offer corporate tax holidays and exemptions on import duties for capital equipment. These incentives reduce the initial capital expenditure for new builds and improve long-term operational margins.

Natural Disaster Risk

Batam carries a Moderate (4.5/10) risk profile as of January 2026. While the island sits outside the main Pacific Ring of Fire, it remains susceptible to regional seismic activity and localized weather events.

• Tsunami (9.3/10): High coastal risk necessitating inland facility placement or elevated infrastructure.
• Earthquake (8.9/10): Significant regional seismic risk requires stringent building standards.
• River Flood (8.4/10): High risk in low-lying areas during monsoon seasons.
• Coastal Flood (8.1/10): Regional risk for seaside infrastructure due to rising sea levels.
• Epidemic (7.4/10): Moderate risk managed through national health protocols.

Other natural hazards are considered minor or are not listed for this specific geography.