Data Centers in Semarang
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Semarang – Your Strategic Hub in Central Java
Semarang is emerging as a critical secondary data center market in Indonesia, offering a compelling alternative to the densely populated Jakarta region. For businesses targeting the manufacturing and logistics sectors in Central Java, Semarang provides lower latency and a strategic location to improve application performance and service delivery. This market is ideal for disaster recovery sites and for companies aiming to reach a large, growing economic zone with greater efficiency.
Semarang: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national connectivity, with latency benefits for the Central Java region. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Private connections are available; the nearest public on-ramps are in Jakarta. |
| Power Cost | IDR 1,650.00-1,750.00/kWh | A competitive rate for industrial power in the region. |
| Disaster Risk | Medium (4.5/10) | Elevated risk from seismic and flood events requires careful site selection. |
| Tax Incentives | Yes | Concessions available for data centers located in designated economic zones. |
| Sales Tax | 12% VAT | Standard national value-added tax as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality
Semarang's ecosystem includes a growing number of national and regional providers, with at least 10–15 carriers present in the market as of September 2025. Carrier-neutral facilities offer diverse connectivity options, reducing reliance on any single provider and improving resilience.
Direct Cloud On-Ramps
There are no direct public cloud on-ramps within Semarang as of September 2025. Businesses requiring dedicated cloud access must connect to the primary hub in Jakarta via private network interconnects (PNI) or wavelength services. This allows for secure, low-latency links to major cloud providers.
Internet Exchange Points (IXPs)
Public peering is limited within Semarang itself. Most traffic is exchanged privately between carriers or routed through the Indonesia Internet Exchange (IIX) in Jakarta, which serves as the country's primary peering point.
Bare Metal
Bare metal server options are available in Semarang, typically through providers that have a presence in the larger Indonesian market. These services, offered by companies like Hivelocity and phoenixNAP, allow for dedicated, high-performance computing without the overhead of virtualization.
Power Analysis
Average Cost Of Power
The estimated cost for industrial power in Semarang ranges from IDR 1,650.00 to 1,750.00 per kWh as of September 2025. These predictable energy costs are essential for managing the total cost of ownership for high-density compute deployments. The national grid relies heavily on fossil fuels (~81%), with a growing share from renewables (~19%).
Power Grid Reliability
The power grid serving Semarang's industrial areas is generally stable and suitable for data center operations. Facilities in the region are supported by redundant power feeds, multiple substations, and robust on-site backup generation to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts
Data centers in Semarang are strategically located near major industrial estates and the Tanjung Emas Port. This proximity provides low-latency connectivity for logistics, manufacturing, and e-commerce companies operating in Central Java.
Regional Market Reach
Semarang is an effective hub for serving the entire Central Java province, a market of over 37 million people. Its location offers a distinct latency advantage over Jakarta for reaching consumers and businesses in cities like Yogyakarta, Surakarta, and Pekalongan.
Tax Advantage For Data Centers
Indonesia offers tax incentives for data centers operating within designated Special Economic Zones (SEZs). These benefits can include relief from certain taxes and import duties, significantly lowering the capital and operational expenses for qualifying investments.
Natural Disaster Risk
Semarang carries a Medium risk profile for natural disasters, with an INFORM Risk score of 4.5 out of 10 as of September 2025. The primary environmental threats are driven by its coastal location and seismic activity in the region.
Key risks include:
- Tsunami: High risk (9.3/10) due to its position on the Java Sea.
- Earthquake: High risk (8.9/10) from proximity to active tectonic zones.
- River Flood: High risk (8.4/10) affecting low-lying areas.
- Coastal Flood: High risk (8.1/10) impacting infrastructure near the shoreline.
Thorough due diligence on facility location, elevation, and structural engineering is critical for mitigating these significant environmental threats.
