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Data Centers in Surabaya

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Surabaya – Indonesia's Strategic Digital Port

Surabaya is a vital secondary data center market in Indonesia, offering a compelling alternative to Jakarta for disaster recovery and serving the country's second-largest metropolitan area. This emerging hub provides crucial infrastructure for businesses targeting Eastern Java's vast population and industrial base, enabling lower latency connections and improved service delivery outside the capital region. Its strategic location supports both domestic expansion and regional digital ambitions.

Surabaya: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBA developing market with good national and growing international connectivity options.
Direct Cloud On-Ramps0 – as of September 2025The nearest major cloud hub is Jakarta; private network extensions are available.
Power CostIDR 1,650.00-1,800.00/kWhPower is primarily fossil fuel-based, with costs reflecting regional norms.
Disaster RiskModerate (4.5/10)High exposure to seismic and flood-related events requires resilient data center design.
Tax IncentivesYesConcessions and exemptions are available for facilities in designated economic zones.
Sales Tax12% VAT – as of September 2025Standard Value Added Tax rate for Indonesia.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality Surabaya has 9 data centers operated by 1 provider as of September 2025. The market is developing, with connectivity primarily supplied by national telecom operators. Carrier-neutral facilities offer access to a growing number of providers, essential for redundancy and competitive pricing.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Surabaya data centers as of September 2025. Businesses require private network connections to the primary cloud hub in Jakarta to establish dedicated access to major cloud service providers.

Internet Exchange Points (IXPs) While smaller, local peering points exist, significant traffic exchange occurs through the Indonesia Internet Exchange (IIX) in Jakarta. Most networks in Surabaya route traffic through the capital to achieve efficient national and international peering.

Bare Metal Bare metal server options are available in Surabaya, often through providers that also have a presence in Jakarta. These services are well-suited for workloads requiring dedicated physical resources and consistent performance. Providers like Hivelocity offer bare metal solutions in the region.

Power Analysis

Average Cost Of Power Industrial electricity rates in Surabaya typically range from IDR 1,650.00 to IDR 1,800.00/kWh as of September 2025. This pricing is competitive for the region but is influenced by the national grid's heavy reliance on fossil fuels, which account for approximately 81% of the energy mix.

Power Grid Reliability The power grid serving Surabaya's industrial areas is generally stable. However, like other major Indonesian cities, modern data centers do not rely solely on the grid. Standard data center designs incorporate multiple levels of redundancy, including multi-megawatt generator farms and battery backup systems, to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Surabaya's data centers are positioned to support the region's significant industrial, manufacturing, and logistics sectors. Their location provides low-latency connectivity to the Port of Tanjung Perak, one of Indonesia's busiest seaports, and numerous industrial estates.

Regional Market Reach As the economic center of Eastern Java, Surabaya provides effective digital access to a population of over 40 million people. It serves as an excellent disaster recovery location for operations based in Jakarta and a primary hub for companies expanding into central and eastern Indonesia.

Tax Advantage For Data Centers Indonesia offers specific tax incentives for data centers operating within designated Special Economic Zones (SEZs) or industrial areas. These advantages include concessions or exemptions on certain taxes and import duties, designed to lower the financial barrier for infrastructure investment.

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 environmental threats stem from its coastal location and proximity to major tectonic fault lines.

Key natural hazards include:

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

Data centers in this market must be built to high seismic and flood-resistant standards. Prospective customers should verify that facilities have specific mitigation strategies for these significant regional risks.

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