Data Centers in Palembang
1 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
Palembang – Strategic Edge Hub for South Sumatra
Gateway for Localized Performance and Resilience
Palembang serves as a vital edge location for enterprises targeting the South Sumatra population without the latency penalties of Jakarta-based routing. It provides a necessary footprint for localized data sovereignty and regional disaster recovery. For organizations reaching millions of users in the southern reaches of the island, this market ensures performance stays high and uptime stays consistent.
Palembang: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional links with growing fiber density. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hub is Jakarta. |
| Power Cost | $0.08–$0.11/kWh, as of September 2025 | Competitive rates for the Southeast Asian region. |
| Disaster Risk | Moderate (4.5/10), as of September 2025 | Risks involve seismic activity and river flooding. |
| Tax Incentives | Yes | Concessions available in designated development zones. |
| Sales Tax | 12% VAT, as of September 2025 | Standard Indonesian value-added tax rate. |
Network & Connectivity Ecosystem
Palembang provides a stable environment for regional traffic distribution and local peering.
Carrier Density & Carrier Neutrality: Carrier count: over 5, as of September 2025. The market is supported by a mix of national telcos and specialized regional fiber providers that ensure path diversity for local traffic and enterprise requirements.
Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions, as of September 2025. Direct cloud connectivity is typically established via private layer 2 extensions or high-speed waves to the primary cloud hub in Jakarta.
Internet Exchange Points (IXPs): Local peering is primarily handled through regional extensions of the Indonesia Internet Exchange (IIX), as of September 2025. This ensures local data stays within Sumatra to minimize latency and improve user experience for regional services.
Bare Metal: Sturdy bare metal services are available through local infrastructure partners or global providers such as Hivelocity, as of September 2025.
Power Analysis
The power landscape in Palembang is shaped by its proximity to significant energy resources.
Average Cost Of Power: Industrial electricity costs range between $0.08–$0.11/kWh, as of September 2025. This pricing provides a stable financial base for high-compute workloads compared to more expensive regional neighbors. The energy mix for the area is approximately 81% fossil fuels and 19% renewables.
Power Grid Reliability: The local grid is supported by multi-substation feeds and is well-engineered to support significant industrial activity. Data centers in this market utilize redundant utility paths to maintain high availability for critical infrastructure.
Market Access, Business & Tax Climate
Palembang is a critical economic engine for the southern portion of Sumatra.
Proximity To Key Business Districts: Facilities are positioned for access to administrative and commercial hubs in Palembang. This proximity is vital for financial institutions and government agencies that require high-speed access to regional data sets.
Regional Market Reach: A data center here acts as a gateway for the broader South Sumatra province, serving a reliable digital connection to millions of end-users across the region.
Tax Advantage For Data Centers: Operators benefit from specific regulatory relief and tax concessions for infrastructure located in designated development zones. This financial framework helps lower the total cost of ownership for long-term infrastructure investments.
Natural Disaster Risk
Palembang carries a Moderate (4.5/10) risk profile as of September 2025. The city geography necessitates specific engineering for seismic and water management.
Earthquake (8.9): High regional seismic risk requires purpose-built facilities with reinforced structural standards to maintain uptime during tremors.
River Flood (8.4): Significant risk due to the Musi River; sites must utilize elevated equipment floors and specialized drainage systems.
Epidemic (7.4): A high risk score emphasizing the need for automated remote hands and autonomous site management capabilities.
Regional Risks (Tsunami 9.3 / Coastal Flood 8.1): While Palembang is inland, these are high-scoring regional risks that may affect indirect logistics and coastal landing stations.
Drought (3.4): A minor risk that is monitored for cooling system efficiency and water availability.
