Data Centers in Medan
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Medan – Strategic Digital Gateway for Northern Sumatra
Digital Infrastructure for High Growth Markets
Medan is the vital digital anchor for North Sumatra, offering essential edge connectivity to a massive regional population. It serves as a critical infrastructure hub for enterprises targeting trade routes near the Malacca Strait. Positioning hardware here ensures low-latency access to one of the fastest-growing economic zones in Indonesia.
Medan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional performance across Sumatra as of December 2025. |
| Direct Cloud On-Ramps | 0 – as of December 2025 | Nearest hubs are Singapore and Jakarta via private extensions. |
| Power Cost | Rp 1,114.74 – Rp 1,444.70/kWh | Competitive industrial rates for Southeast Asia as of December 2025. |
| Disaster Risk | Moderate (4.5/10) | Seismic activity and flooding are primary concerns as of December 2025. |
| Tax Incentives | Yes | Concessions exist for centers in designated areas as of December 2025. |
| Sales Tax | 12% VAT | Standard national rate for digital services as of December 2025. |
Network & Connectivity Ecosystem
Medan acts as the connectivity gateway for the island of Sumatra, linking local users to the national backbone in Jakarta and international routes via Singapore.
Carrier Density & Carrier Neutrality: The market supports a functional ecosystem with ~10–15 carriers as of December 2025. Local facilities provide neutral environments where businesses interconnect with national telecommunication providers and regional internet service providers.
Direct Cloud On-Ramps: There are 0 direct cloud on-ramps, enabling access to 0 cloud regions as of December 2025. Organizations requiring high-speed access to AWS, Google Cloud (GCP), or Microsoft Azure typically utilize private network extensions or high-capacity wavelengths to connect through major hubs in Jakarta or Singapore.
Internet Exchange Points (IXPs): Peering is largely managed through the Sumatra Internet Exchange or via private interconnects to the primary national exchanges in Jakarta as of December 2025. This structure ensures efficient local traffic routing while maintaining reliable access to the broader Indonesian internet.
Bare Metal: Compute requirements are supported by global providers such as Latitude.sh and Hivelocity as of December 2025. These options serve businesses requiring high-performance hardware without long-term equipment management.
Power Analysis
Power in Medan is supplied through a grid that is increasingly diversified but still heavily reliant on traditional generation methods.
Average Cost Of Power: Industrial electricity costs range between Rp 1,114.74 and Rp 1,444.70/kWh as of December 2025. These rates provide a predictable cost structure for large-scale data center operations and remain competitive within the Southeast Asian market.
Power Grid Reliability: The electrical grid in major industrial corridors is well-engineered and utilizes multi-substation support to ensure stability. While the national mix is approximately 81% fossil fuels, the remaining 19% comes from hydro and geothermal sources, providing a resilient energy foundation as of December 2025.
Market Access, Business & Tax Climate
Medan is the administrative and commercial heart of North Sumatra, making it a natural choice for digital infrastructure.
Proximity To Key Business Districts: Facilities are strategically placed near the Medan City Center and the Port of Belawan. This proximity is vital for logistics companies and financial institutions that require immediate access to their data processing environments.
Regional Market Reach: A presence in Medan allows businesses to serve the wider North Sumatra province and neighboring regions. Its location near the Malacca Strait also makes it a sensible staging point for regional digital services.
Tax Advantage For Data Centers: Operators benefit from specific financial concessions and regulatory relief that lower the total cost of entry. These incentives allow infrastructure providers to reinvest capital into local facility expansion instead of high overhead.
Natural Disaster Risk
The overall risk score for Medan is Moderate (4.5/10) as of December 2025. The risk profile is primarily shaped by the regional geography of Sumatra.
Natural Hazards
- Tsunami (9.3/10): High risk reflecting regional coastal exposure, though mitigated for facilities located further inland as of December 2025.
- Earthquake (8.9/10): High risk stemming from the city’s location within a seismically active zone as of December 2025.
- River Flood (8.4/10): High risk for low-lying areas during heavy monsoon seasons as of December 2025.
- Coastal Flood (8.1/10): High risk for facilities located near the Port of Belawan and coastal zones as of December 2025.
- Epidemic (7.4/10): Moderate risk reflecting regional health challenges as of December 2025.
Other natural hazards, such as tropical cyclones and droughts, are considered minor or are not listed as significant threats to infrastructure in this area as of December 2025.
