Data Centers in Surakarta
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Surakarta – Emerging Digital Hub in Central Java
Surakarta, also known as Solo, is establishing itself as a viable secondary data center market in Indonesia. It provides a strategic location for enterprises needing to serve the dense populations of Central and East Java with lower latency. This market is ideal for disaster recovery sites for Jakarta-based operations and for content delivery networks targeting regional growth.
Surakarta: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects Indonesia's developing, yet improving, national fiber infrastructure. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud access is in Jakarta; private network extensions are available. |
| Power Cost | IDR 1,550.00 - 1,850.00/kWh | Sourced from a grid heavily reliant on fossil fuels (~81%). |
| Disaster Risk | Moderate (4.5/10) | Significant risk from earthquakes and river floods; Tsunami risk is negligible. |
| Tax Incentives | Varies | Concessions may apply in designated zones, but are not broadly available. |
| Sales Tax | 12% VAT | Standard national rate as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: A growing number of national and regional carriers offer services in Surakarta, with at least one carrier-neutral facility available to foster interconnection, as of September 2025.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Surakarta. Businesses require private network connections or optimized internet routes to access the primary cloud regions located in Jakarta.
Internet Exchange Points (IXPs): Peering is primarily done privately or through transit to the Indonesia Internet Exchange (IIX) in Jakarta. This centralized peering architecture is typical for Indonesian cities outside the capital.
Bare Metal: Bare metal server options are available, enabling businesses to deploy dedicated compute without capital expenditure. Providers such as Hivelocity and Leaseweb can serve the Indonesian market from regional hubs.
Power Analysis
Average Cost Of Power: Industrial electricity rates are estimated between IDR 1,550.00 and 1,850.00 per kWh, as of September 2025. This cost structure directly influences total operating expenses for compute-intensive workloads. Indonesia's power mix is approximately 81% fossil fuels and 19% renewables.
Power Grid Reliability: The local grid is adequate for commercial use, but data centers in the region employ extensive backup systems. Facilities are engineered with multiple substations, UPS systems, and diesel generators to deliver high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Surakarta are positioned to support the region's primary industries, including manufacturing, education, and tourism. They provide the core infrastructure for local digital transformation.
Regional Market Reach: The city's location in Central Java makes it an effective hub for delivering services to a population of over 35 million people with reduced latency compared to routing traffic from Jakarta.
Tax Advantage For Data Centers: The Indonesian government provides tax incentives, including potential relief from VAT and import duties, for data centers developed in designated Special Economic Zones (SEZs). These programs aim to attract foreign investment and accelerate digital infrastructure growth.
Natural Disaster Risk
Surakarta has a moderate overall disaster risk profile, with an INFORM Risk score of 4.5 out of 10 as of September 2025. While its inland location protects it from tsunamis and major coastal flooding, other environmental threats are significant.
Key natural hazards include:
- Earthquake: 8.9
- River Flood: 8.4
- Epidemic: 7.4
- Drought: 3.4
Operators mitigate these risks through site selection away from floodplains and adherence to seismic building codes.
