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Data Centers in Surabaya

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Surabaya – Indonesia's Strategic Eastern Hub

Surabaya serves as a vital secondary data center market in Indonesia, offering a compelling alternative to the primary hub in Jakarta. It is the ideal location for businesses requiring low-latency connectivity to Eastern Indonesia's large population and industrial base. Deploying in Surabaya enhances application performance and provides a crucial disaster recovery location to ensure business continuity across the archipelago.

Surabaya: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong connectivity for a secondary market, supporting national and regional traffic.
Direct Cloud On-Ramps0 – as of September 2025Nearest on-ramps are in Jakarta; private network extensions provide dedicated access.
Power CostIDR 1,650.00 - 1,850.00/kWh (est.)Grid is primarily fossil fuel-based, with a growing renewables segment.
Disaster RiskMedium (4.5/10) – as of September 2025High exposure to seismic and flood events requires careful facility selection.
Tax IncentivesVariesConcessions may apply for data centers in designated Special Economic Zones.
Sales Tax12% VAT – as of September 2025A standard Value Added Tax is applied to colocation and connectivity services.

Network & Connectivity Ecosystem

Surabaya provides a solid foundation for digital infrastructure, with a growing ecosystem of providers and peering opportunities.

Carrier Density & Carrier Neutrality: The market features over 9 data centers with access to more than 10 national and regional carriers, as of September 2025. Carrier-neutral facilities offer diverse connectivity options, preventing vendor lock-in and improving network resilience.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Surabaya, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via the primary interconnection hub in Jakarta. Private network interconnects, such as dedicated fiber or wavelength services, are readily available to establish secure, high-performance links.

Internet Exchange Points (IXPs): Peering is available through local exchanges like OpenIXP Surabaya. Access to a local IXP improves routing efficiency and reduces latency for traffic within the region by keeping data exchange local.

Bare Metal: Bare metal server capacity is available in Surabaya from multiple providers. Global suppliers like Hivelocity and phoenixNAP can service deployments in the region, offering dedicated compute for performance-sensitive applications.

Power Analysis

Surabaya's power infrastructure is capable of supporting high-density data center operations, though it reflects the national energy mix.

Average Cost Of Power: The estimated cost for industrial power is between IDR 1,650.00 and 1,850.00/kWh, as of September 2025. This pricing structure offers predictable operational expenses for high-performance computing and storage-intensive workloads.

Power Grid Reliability: Data centers in Surabaya are located in well-serviced industrial areas with redundant power infrastructure. Facilities are engineered with multi-substation support, comprehensive UPS systems, and on-site diesel generators to deliver high levels of uptime.

Market Access, Business & Tax Climate

Surabaya's strategic location and business-friendly environment make it an effective hub for reaching a massive domestic market.

Proximity To Key Business Districts: Data centers in Surabaya are positioned to serve the region's key industries, including manufacturing, shipping, logistics, and trade. This proximity provides low-latency connectivity essential for modern industrial and commercial operations.

Regional Market Reach: As Indonesia's second-largest city, Surabaya is the digital gateway to the 40 million people of East Java. It also serves as the primary hub for delivering services with improved performance to the entire eastern portion of Indonesia, including Bali, Sulawesi, and the Lesser Sunda Islands.

Tax Advantage For Data Centers: Indonesia provides tax incentives for data centers located within designated Special Economic Zones (SEZs). These programs can significantly lower capital expenditures and ongoing operational costs for new infrastructure deployments.

Natural Disaster Risk

Surabaya has a Medium disaster risk profile, with an overall INFORM Risk score of 4.5 out of 10, as of September 2025. The area's geography exposes it to several significant natural hazards that require robust infrastructure planning and mitigation.

Key risks include:

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

Choosing a data center built to modern seismic codes and located outside of designated flood zones is critical for ensuring operational resilience.

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