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Data Centers in Denpasar

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Denpasar – Emerging Digital Hub for Southeast Asia

Denpasar is establishing itself as a strategic digital gateway for businesses targeting Indonesia and the broader Southeast Asia region. For companies requiring resilient infrastructure to serve this rapidly growing digital economy, Denpasar provides essential connectivity and colocation services. This market is ideal for content delivery networks, cloud service providers, and enterprises focused on minimizing latency to millions of consumers.

Denpasar: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGood regional connectivity with developing international links.
Direct Cloud On-Ramps0 – as of September 2025Access is via the nearest hub, Jakarta, or through private network connections.
Power CostIDR 1,650.00-1,800.00/kWhA competitive rate for the region, though heavily reliant on fossil fuels.
Disaster RiskModerate (4.5/10) – as of Sept 2025Primary risks include tsunami, earthquake, and flooding.
Tax IncentivesYesConcessions and exemptions are available for facilities in designated economic zones.
Sales Tax12% VAT – as of September 2025The standard Value Added Tax rate for Indonesia.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: With 5 data centers, Denpasar's connectivity ecosystem is growing. The market is served by Indonesia's primary telecom operators, offering access within a developing carrier-neutral environment as of September 2025.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Denpasar as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through network extensions from Jakarta or via private network interconnects.

Internet Exchange Points (IXPs): Public peering is limited in Denpasar. Most traffic exchange occurs through private peering arrangements or is routed via the Indonesia Internet Exchange (IIX) in Jakarta, which is central to the nation's connectivity.

Bare Metal: Bare metal server options are available in the region, primarily through providers with a presence in nearby Jakarta. Offerings from providers like Hivelocity can serve workloads requiring dedicated physical hardware.

Power Analysis

Average Cost Of Power: Industrial electricity costs in Denpasar are estimated between IDR 1,650.00 and IDR 1,800.00 per kWh as of September 2025. This pricing is competitive within Southeast Asia, but businesses should note the grid's high dependence on fossil fuels (~81%).

Power Grid Reliability: The power grid supporting Denpasar is reasonably stable for commercial operations. Data centers in the area mitigate potential fluctuations with standard N+1 or 2N redundant power systems, including on-site generators and enterprise-grade UPS units.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Denpasar are positioned to serve the island's booming tourism industry, financial services, and a growing startup scene. This proximity ensures low-latency performance for local digital services.

Regional Market Reach: Denpasar acts as a digital hub for Bali and the surrounding Nusa Tenggara islands. Its location provides an effective distribution point for content and applications targeting Indonesia's vast and geographically dispersed population.

Tax Advantage For Data Centers: The Indonesian government provides tax incentives for data centers operating within designated Special Economic Zones (SEZs). These benefits include potential relief from specific taxes and duties, which can significantly reduce the operational cost for new colocation deployments.

Natural Disaster Risk

Denpasar has a moderate overall disaster risk profile, with a score of 4.5 out of 10 as of September 2025. The INFORM Risk model highlights significant exposure to specific natural hazards, which requires careful site selection and facility engineering.

Key environmental risks for infrastructure include:

  • Tsunami: 9.3/10
  • Earthquake: 8.9/10
  • River Flood: 8.4/10
  • Coastal Flood: 8.1/10
  • Drought: 3.4/10
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