Data Centers in Pekanbaru
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Pekanbaru – Strategic Digital Hub for Sumatra
Pekanbaru is an emerging data center market in Indonesia, strategically positioned to serve the resource-rich island of Sumatra. It provides a viable location for enterprises focused on local application performance, disaster recovery, and serving regional economic centers like the Malacca Strait. While direct cloud access is limited, the market offers foundational colocation services for businesses targeting this specific geography.
Pekanbaru: 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 required. |
| Power Cost | IDR 1,600-1,850/kWh | Industrial power costs are competitive for the region. |
| Disaster Risk | Moderate (4.5/10) | Primary risks are seismic and flood-related; requires site-specific due diligence. |
| 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 offers access to a focused group of national and regional carriers, with at least 2 data center operators in the market as of September 2025. Carrier-neutral facilities provide essential options for network redundancy.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Pekanbaru as of September 2025. Businesses require private network extensions, such as PNI or wavelength services, to connect to cloud provider fabrics in Jakarta or Singapore.
Internet Exchange Points (IXPs): Public peering is limited within Pekanbaru. Most traffic exchange occurs through private peering arrangements or is routed through the Indonesia Internet Exchange (IIX) in Jakarta.
Bare Metal: Bare metal server options are available, enabling businesses to deploy dedicated compute without capital expenditure. Providers like Hivelocity offer services that can be deployed in the broader Southeast Asia region.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Pekanbaru are estimated between IDR 1,600–1,850/kWh as of September 2025. These competitive power costs help manage operational expenditures for compute-heavy deployments. The national grid mix is primarily fossil fuels (~81%) with a growing renewables component (~19%).
Power Grid Reliability: The power grid supporting Pekanbaru's primary commercial areas is generally reliable for business operations. Data centers in the market provide multi-layered redundancy, including UPS systems and on-site generators, to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Pekanbaru are situated to serve the region's significant agribusiness, pulp and paper, and oil and gas industries. Low-latency connectivity is critical for these sectors' logistics and production management systems.
Regional Market Reach: Pekanbaru serves as a digital gateway to the 60 million people of Sumatra and the vital shipping lanes of the Malacca Strait. It is a logical point of presence for content delivery and services targeting this large, geographically distinct population.
Tax Advantage For Data Centers: The Indonesian government provides tax incentives for data centers operating within designated Special Economic Zones (SEZs). These concessions can include relief from certain taxes and regulatory duties, directly lowering the total cost of ownership for operators and their tenants.
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 seismic activity and weather patterns.
Key risks include:
- Earthquake: 8.9/10
- River Flood: 8.4/10
- Epidemic: 7.4/10
- Drought: 3.4/10
While tsunami and coastal flood risks are high for Indonesia nationally, Pekanbaru's inland location mitigates direct exposure to these specific threats.
