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Data Centers in Surabaya

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Surabaya – Gateway to Eastern Indonesia

Executive Summary

Surabaya provides a crucial secondary data center market in Indonesia, ideal for businesses targeting the country's second-largest metropolitan area and the wider Eastern Java region. It offers a compelling alternative to Jakarta for disaster recovery strategies and latency-sensitive applications, ensuring resilient access to a massive consumer and industrial base. This market is a practical choice for organizations needing a reliable Indonesian footprint beyond the capital.

Surabaya: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong national connections; a secondary hub for international traffic.
Direct Cloud On-Ramps0 – as of September 2025Private connections are available to the primary cloud hub in Jakarta.
Power Cost$0.10 – $0.14 USD/kWhReflects industrial rates; energy mix is ~81% fossil fuels.
Disaster RiskModerate (4.5/10)Significant exposure to seismic, tsunami, and flood-related events.
Tax IncentivesVariesDC-specific concessions may be available in designated special economic zones.
Sales Tax12% VAT – as of September 2025Standard national Value Added Tax rate applies to services.

Network & Connectivity Ecosystem

Surabaya serves as an important digital hub for the eastern half of Java and the surrounding archipelago. While it is not the primary interconnection point for Indonesia, it has a developing ecosystem sufficient for most business operations and disaster recovery sites.

Carrier Density & Carrier Neutrality The market contains 9 data centers with access to all major Indonesian carriers, as of September 2025. While carrier density is lower than in Jakarta, carrier-neutral facilities provide the necessary options for creating redundant network paths.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Surabaya, as of September 2025. Businesses require dedicated network connections, like PNI or wavelength services, to access the primary cloud regions located in Jakarta.

Internet Exchange Points (IXPs) Public peering is limited within Surabaya itself. Most traffic exchange occurs through private peering arrangements or is routed through the Indonesia Internet Exchange (IIX) in Jakarta, which serves as the nation's central peering point.

Bare Metal Bare metal server options are available from providers operating within the region. Global providers like Hivelocity and phoenixNAP can service deployments, offering dedicated compute for workloads that demand high performance and security.

Power Analysis

Average Cost Of Power Industrial electricity rates are estimated to be between $0.10 and $0.14 USD/kWh, as of September 2025. These competitive power costs can make large-scale deployments more economical than in other regional markets. The national grid is heavily reliant on fossil fuels (~81%), a key consideration for sustainability planning.

Power Grid Reliability The power grid serving Surabaya's main commercial and industrial zones is generally reliable, with data centers supported by multiple substations and redundant power feeds. As in any developing market, enterprise-grade facilities supplement grid power with robust UPS systems and on-site generators to guarantee uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Surabaya are strategically located to serve the region's key economic centers. This includes the Port of Tanjung Perak, one of Indonesia's busiest seaports, and the numerous industrial estates that are home to manufacturing, logistics, and automotive companies.

Regional Market Reach Surabaya is perfectly positioned to serve the 40 million people in Eastern Java. It also functions as a low-latency gateway to Bali, the Lesser Sunda Islands, and other markets in central and eastern Indonesia that are difficult to reach effectively from Jakarta alone.

Tax Advantage For Data Centers Indonesia offers tax incentives for data center investments, particularly for facilities located in designated Special Economic Zones (SEZs). These programs can provide significant financial relief through concessions or exemptions on certain taxes and import duties, directly lowering the total cost of ownership.

Natural Disaster Risk

Surabaya has a moderate overall disaster risk profile, with an INFORM Risk score of 4.5 out of 10, as of September 2025. The primary threats are environmental, and any infrastructure deployment must account for these specific, high-risk factors.

Key natural hazards include:

  • Tsunami: (9.3/10)
  • Earthquake: (8.9/10)
  • River Flood: (8.4/10)
  • Coastal Flood: (8.1/10)

The city's coastal location makes it highly susceptible to seismic and water-related events. Data center operators mitigate these risks through careful site selection, hardened building construction, and comprehensive operational continuity plans.

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