Data Centers in Denpasar

Denpasar – Edge Connectivity for Indonesia's Digital Growth

Denpasar serves as a strategic edge market in Indonesia, offering colocation and connectivity for the nation's booming digital economy and tourism sector. For businesses targeting Bali and Eastern Indonesia, deploying infrastructure here reduces latency and improves application performance, bypassing congested routes through Jakarta. This market is ideal for content delivery networks, hospitality tech platforms, and enterprises needing reliable local compute and network services.

Denpasar: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market provides access to over 5 major domestic and regional carriers as of September 2025. Carrier-neutral facilities offer interconnection between providers like Telkom Indonesia and Indosat Ooredoo Hutchison, creating a competitive environment for network services.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps in Denpasar as of September 2025. Businesses connect to cloud providers by establishing private network links to the primary interconnection hub in Jakarta, where all major cloud providers have a presence.

Internet Exchange Points (IXPs): While local peering is limited, most traffic is exchanged through the Indonesia Internet Exchange (IIX) in Jakarta. Accessing the IIX is critical for optimizing traffic flow within the country.

Bare Metal: Bare metal server options are available from providers with a presence in Indonesia. Global providers like Hivelocity and phoenixNAP can service the region from nearby hubs, offering dedicated compute for performance-sensitive workloads.

Power Analysis

Average Cost Of Power: Industrial power costs are estimated between IDR 1,500 and IDR 1,750 per kWh as of September 2025. The national grid's reliance on fossil fuels (~81%) means power pricing can be subject to global energy market fluctuations.

Power Grid Reliability: The power grid in major commercial areas of Denpasar is generally stable, with data centers providing multiple levels of redundancy, including UPS systems and backup generators. Facilities are engineered to support mission-critical operations, drawing from the national PLN grid.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the Denpasar metro area are strategically located to serve the island's primary economic engine: the tourism and hospitality industry. They provide low-latency connectivity to hotels, resorts, and the financial services that support them.

Regional Market Reach: Denpasar is the digital gateway to Bali, the Lesser Sunda Islands, and Eastern Indonesia. It provides a crucial point of presence for serving millions of residents and tourists outside of the main Java island hubs.

Tax Advantage For Data Centers: The Indonesian government offers tax incentives for data centers operating within designated Special Economic Zones (SEZs). These benefits can include relief from certain taxes and regulatory duties, directly reducing the operational costs for providers and their customers.

Natural Disaster Risk

Denpasar has a Moderate risk profile (4.5/10) based on the INFORM Risk Index as of September 2025. The primary natural hazards are driven by the region's position within the Pacific Ring of Fire and its tropical climate.

Key risks include:

• Tsunami: High risk (9.3) due to coastal exposure and seismic activity.
• Earthquake: High risk (8.9) from regional tectonic plate boundaries.
• River Flood: High risk (8.4) affecting low-lying areas during monsoon season.
• Coastal Flood: High risk (8.1) related to storm surges and rising sea levels.
• Tropical Cyclone: Low risk (1.5), as the area is less frequently hit by major cyclones.