Data Centers in Pekanbaru
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Pekanbaru – Emerging Digital Hub for Sumatra
Pekanbaru is developing as a strategic digital gateway for the island of Sumatra, offering a localized alternative to the primary data center market in Jakarta. This market is ideal for enterprises and content providers aiming to reduce latency and improve service delivery to Sumatra's growing population and business centers. Locating infrastructure here provides a crucial performance advantage for reaching one of Indonesia's key economic regions.
Pekanbaru: At A Glance
Factor | Rating / Data | Notes |
---|---|---|
Global Connectivity Grade | B | Good national and regional connectivity, with developing international links. |
Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extension to Jakarta or Singapore. |
Power Cost | IDR 1,650.00-1,800.00/kWh | A conservative estimate for industrial power, as of September 2025. |
Disaster Risk | Moderate (4.5/10) | Significant exposure to flood and seismic events requires careful facility selection. |
Tax Incentives | Yes | DC-specific concessions are available in designated economic zones. |
Sales Tax | 12% VAT | Standard national value-added tax rate, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Pekanbaru's data centers offer access to a growing number of national and regional carriers. The market features at least 2 facilities, as of September 2025, providing carrier-neutral options essential for redundancy and competitive pricing.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Pekanbaru as of September 2025. Businesses require private network extensions via carrier partners to connect to major cloud provider fabrics, with the primary interconnection hubs located in Jakarta and Singapore.
Internet Exchange Points (IXPs): Public peering is limited within Pekanbaru. Most traffic exchange occurs through private peering arrangements within data centers or is routed through the Indonesia Internet Exchange (IIX) in Jakarta to achieve efficient local traffic paths.
Bare Metal: Bare metal server options are available, enabling businesses to deploy dedicated compute without capital expenditure. Providers like Hivelocity offer solutions that can be deployed in regional data centers.
Power Analysis
Average Cost Of Power: Industrial electricity costs are estimated between IDR 1,650.00 and IDR 1,800.00 per kWh, as of September 2025. This competitive pricing can significantly reduce operational expenditures for high-density deployments compared to more mature regional markets. The grid is primarily powered by fossil fuels (~81%), with a growing renewable energy component (~19%).
Power Grid Reliability: The power grid supporting Pekanbaru's commercial zones is generally stable. Data centers in the region are built with significant redundancy, including multiple utility feeds, on-site fuel storage, and N+1 or greater backup generator and UPS configurations to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Pekanbaru are positioned to serve the city's key industries, including oil and gas, pulp and paper, and agriculture. Their location provides low-latency connectivity for corporate headquarters and industrial operations throughout the Riau province.
Regional Market Reach: Pekanbaru serves as an effective digital hub for the entire island of Sumatra, which has a population of over 60 million. It offers a strategic point of presence for reaching markets in Medan, Palembang, and Batam with improved performance.
Tax Advantage For Data Centers: Indonesia provides tax incentives for data centers located in Special Economic Zones (SEZs). These benefits can include relief from certain value-added and import taxes, creating a more favorable financial environment for infrastructure investment.
Natural Disaster Risk
Pekanbaru has a moderate overall disaster risk profile, with a score of 4.5 out of 10, as of September 2025. The primary natural hazards are driven by the region's geography and climate, requiring tenants to ensure provider facilities are engineered to withstand specific threats.
Key risks include:
- Tsunami: High (9.3/10) - A significant regional risk for coastal areas of Sumatra.
- Earthquake: High (8.9/10) - High seismic activity in the region.
- River Flood: High (8.4/10) - A primary local risk for the city.
- Coastal Flood: High (8.1/10) - Affects the broader provincial coastline.
- Epidemic: High (7.4/10) - A national-level risk factor.