Data Centers in Medan
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Medan – Sumatra's Emerging Digital Hub
Medan is the primary digital gateway for the island of Sumatra, offering a strategic location for businesses targeting Indonesia's western regions. Its developing infrastructure provides a crucial foothold for content delivery and services, reducing latency for a significant and growing user base. Establishing a presence here ensures faster, more reliable access for millions of consumers and businesses across the island.
Medan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Jakarta; private connectivity is available. |
| Power Cost | IDR 1,550.00-1,700.00/kWh | Competitive pricing for the region supports cost-effective operations. |
| Disaster Risk | High (7.4/10) – as of September 2025 | Significant exposure to seismic and flood-related events. |
| Tax Incentives | Yes | Concessions and exemptions are available for facilities in designated economic zones. |
| Sales Tax | 12% VAT – as of September 2025 | Standard national value-added tax rate applies. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Medan's ecosystem includes at least two data center operators as of September 2025, providing access to a range of national and regional carriers. While not as dense as Jakarta, the market offers sufficient options for redundant network architectures in carrier-neutral facilities.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Medan as of September 2025. Businesses requiring dedicated cloud access must connect to the nearest major hub, Jakarta, through private network interconnects (PNI) or Layer 2 services offered by local providers. This allows for secure, low-latency links to all major cloud providers.
Internet Exchange Points (IXPs) Public peering is limited within Medan itself. Most traffic exchange occurs through private peering arrangements within local data centers or is routed through the Indonesia Internet Exchange (IIX) in Jakarta, which serves as the country's primary peering point.
Bare Metal Bare metal server availability is growing in the region. Providers like Hivelocity and OVHcloud can service the Indonesian market, offering dedicated compute resources for performance-sensitive applications that require direct hardware access.
Power Analysis
Average Cost Of Power Industrial electricity rates in Medan typically range from IDR 1,550.00 to 1,700.00/kWh as of September 2025. This competitive pricing structure helps manage operational expenditures for high-density compute deployments. Indonesia's power mix is heavily reliant on fossil fuels (~81%), with a growing share from renewables (~19%).
Power Grid Reliability The power grid serving Medan's primary commercial areas is generally stable. Data centers in the region are supported by redundant power feeds, multiple substations, and enterprise-grade UPS and generator backup systems to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Medan are situated to serve the city's core business district and the surrounding industrial estates, which are centers for palm oil, rubber, and manufacturing. This proximity provides low-latency connectivity for enterprises managing supply chains and business operations across Sumatra.
Regional Market Reach Medan is the economic capital of Sumatra, providing a strategic base to serve a population of over 60 million people across the island. Its location is ideal for content delivery networks, financial services, and cloud applications targeting this large and underserved market.
Tax Advantage For Data Centers Indonesia offers tax incentives for data centers operating within designated Special Economic Zones (SEZs). These benefits can include tax holidays and relief from certain import duties and local taxes, effectively lowering the total cost of ownership for operators.
Natural Disaster Risk
Medan has a high-risk profile for natural disasters, with an INFORM Natural Hazard & Exposure score of 7.4 out of 10 as of September 2025. The geography exposes the region to significant seismic and meteorological threats that require careful site selection and facility engineering.
Key risks include:
- Tsunami: 9.3/10
- Earthquake: 8.9/10
- River Flood: 8.4/10
- Coastal Flood: 8.1/10
- Drought: 3.4/10
