Data Centers in Medan
2 locations found
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Explore Other Markets in Indonesia
Medan – Emerging Digital Hub for Sumatra
Medan is establishing itself as a key digital gateway for Sumatra and the Strait of Malacca. For businesses requiring low-latency access to western Indonesia's growing economy, Medan offers a strategic alternative to Jakarta, reducing latency and improving user experience for millions of people. This emerging market provides essential infrastructure for regional expansion.
Medan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A solid secondary hub with growing connectivity options serving northern Sumatra. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is primarily via private network extension from hubs in Jakarta. |
| Power Cost | IDR 1,550.00 – 1,750.00/kWh | Sourced from a fossil fuel-heavy grid; renewables are a minor component. |
| Disaster Risk | Moderate (4.5/10) – as of September 2025 | Notable exposure to seismic and flood-related events requires careful site selection. |
| Tax Incentives | Varies | DC-specific concessions or relief may be available for facilities in designated areas. |
| Sales Tax | 12% VAT – as of September 2025 | The standard national Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Medan’s connectivity ecosystem is developing, providing a crucial foothold for infrastructure in western Indonesia. While not as dense as Jakarta, it offers strategic advantages for reaching local markets.
Carrier Density & Carrier Neutrality Medan has a growing presence of national and regional carriers, with at least 2 data centers providing colocation options as of September 2025. Carrier neutrality is standard, allowing for flexible network architecture.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Medan as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through private network links and carrier extensions to the primary interconnection hub in Jakarta.
Internet Exchange Points (IXPs) Public peering is limited within Medan itself. Most traffic exchange occurs through private peering arrangements or is routed via the Indonesia Internet Exchange (IIX) in Jakarta to reach the broader domestic and international internet.
Bare Metal Bare metal server options are available, enabling companies to deploy dedicated hardware. Providers such as Hivelocity can serve the market, offering customized compute and storage solutions.
Power Analysis
Average Cost Of Power Industrial power costs in Medan are estimated between IDR 1,550.00 – 1,750.00/kWh as of September 2025. The national grid relies heavily on fossil fuels (~81%), which can influence price stability. This cost structure is a critical factor for large-scale deployments.
Power Grid Reliability The power grid supporting Medan's commercial districts is generally stable. Data center operators mitigate risks with standard N+1 or 2N UPS systems and multiple backup generators, ensuring high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Medan are strategically located to serve the city's primary commercial centers and the nearby Port of Belawan, a major shipping hub. This proximity is ideal for logistics, manufacturing, and trade-focused businesses requiring fast data processing.
Regional Market Reach Medan is perfectly positioned to deliver low-latency services to the entire island of Sumatra, which has a population of over 60 million. It also serves as a connectivity point for traffic crossing the Strait of Malacca to Malaysia and Singapore.
Tax Advantage For Data Centers Indonesia offers tax incentives for data centers located within designated Special Economic Zones (SEZs). These programs can provide significant relief from certain taxes and regulatory burdens, making investment more attractive.
Natural Disaster Risk
Medan has a Moderate disaster risk profile, with an INFORM Risk score of 4.5 out of 10 as of September 2025. While manageable with modern engineering, a thorough risk assessment is essential for any deployment.
The primary natural hazards for the region include:
- Tsunami: High Risk (9.3)
- Earthquake: High Risk (8.9)
- River Flood: High Risk (8.4)
- Coastal Flood: High Risk (8.1)
Facility selection should prioritize sites with specific mitigations against seismic activity and flooding.
