Data Centers in Pekanbaru
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Pekanbaru – Strategic Gateway to Sumatra
Pekanbaru is an emerging data center market in Indonesia, offering a strategic location to serve the island of Sumatra. It is best suited for organizations deploying disaster recovery sites or content delivery networks targeting the region's growing digital economy, where reliable local infrastructure can significantly improve application performance and user experience.
Pekanbaru: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, with primary links through national hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via nearest hub, Jakarta, with private network extension options available. |
| Power Cost | IDR 1,650.00-1,800.00/kWh | Industrial electricity rates vary; grid is primarily fossil fuel-based. |
| Disaster Risk | Moderate (4.5/10) – as of September 2025 | Primary risks include earthquake, river flood, and projected conflict. |
| Tax Incentives | Yes | DC-specific concessions are available for facilities in designated economic zones. |
| Sales Tax | 12% VAT – as of September 2025 | Standard Value Added Tax rate applied to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Pekanbaru has a developing carrier ecosystem with two primary data centers, as of September 2025. While carrier density is not as high as in Jakarta, businesses can find sufficient options for redundancy and connectivity within carrier-neutral facilities.
Direct Cloud On-Ramps: There are no direct cloud on-ramps in Pekanbaru, as of September 2025. All major public clouds, including AWS, Google Cloud (GCP), and Microsoft Azure, are accessed via network extensions from the primary Indonesian hub in Jakarta. Private connectivity options are available to establish secure, low-latency links.
Internet Exchange Points (IXPs): Public peering is limited within Pekanbaru itself. Most network traffic is exchanged through private peering arrangements or routed through the Indonesia Internet Exchange (IIX) in Jakarta to achieve efficient traffic flow nationally.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive workloads. Providers like Hivelocity offer deployment capabilities in the region, often through local partners or nearby network nodes.
Power Analysis
Average Cost Of Power: The average industrial electricity cost in the Pekanbaru region is estimated between IDR 1,650.00 and IDR 1,800.00 per kWh, as of September 2025. Indonesia's energy mix is approximately 81% fossil fuels and 19% renewables. These power costs are competitive for the region and support cost-effective data center operations.
Power Grid Reliability: The power grid supporting Pekanbaru's commercial zones is generally reliable for business operations. Data centers in the area are engineered with full UPS systems, backup generators, and redundant power feeds to ensure high levels of uptime, meeting typical industry standards.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Pekanbaru are situated to serve the city's primary commercial and government centers. This proximity provides low-latency connectivity for local enterprises in the palm oil, pulp and paper, and oil and gas industries, which dominate the regional economy.
Regional Market Reach: Pekanbaru serves as a digital hub for the Riau province and the broader island of Sumatra, one of Indonesia's largest economic regions. Colocation here reduces latency for millions of end-users compared to hosting infrastructure solely in Jakarta.
Tax Advantage For Data Centers: Indonesia provides tax incentives for data centers operating within designated Special Economic Zones (SEZs). These benefits can include significant relief from certain taxes and regulatory duties, directly lowering the operational costs for providers and their customers.
Natural Disaster Risk
Pekanbaru has a Moderate risk profile for natural disasters, with an INFORM Risk score of 4.5 out of 10, as of September 2025. The risk assessment indicates that while the overall hazard level is high, the area's vulnerability and lack of coping capacity are comparatively lower, mitigating the total risk.
Key natural hazards for the region include:
- Earthquake: 8.9
- River Flood: 8.4
- Coastal Flood: 8.1 (regional impact)
- Epidemic: 7.4
- Drought: 3.4
