Data Centers in Yogyakarta
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Yogyakarta – Emerging Digital Hub for Central Java
Yogyakarta is establishing itself as a key secondary data center market in Indonesia, offering a strategic alternative to Jakarta. It is an ideal location for businesses requiring disaster recovery solutions and low-latency connectivity to the dense populations and academic centers of Central Java. The market's combination of improving connectivity and a favorable cost base provides a compelling advantage for regional digital service delivery.
Yogyakarta: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A solid regional hub with improving fiber infrastructure and local peering. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access to major cloud providers is handled via network extensions from Jakarta. |
| Power Cost | IDR 1,100.00 - 1,200.00/kWh | Favorable opex compared to primary hubs; national grid is fossil fuel dominant. |
| Disaster Risk | Moderate (4.5/10) – as of September 2025 | Notable seismic activity in the region requires properly engineered facilities. |
| Tax Incentives | Yes | DC-specific concessions are available, including relief for facilities in designated zones. |
| Sales Tax | 12% VAT – as of September 2025 | Standard national value-added tax rate applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market features a growing number of local and national providers, with at least 10 carriers present as of September 2025. Carrier-neutral facilities are available, offering diverse connectivity options for colocation customers.
Direct Cloud On-Ramps: As of September 2025, there are no direct, in-market on-ramps for major public clouds. Secure, private connections to AWS, Google Cloud (GCP), and Microsoft Azure are established through network provider fabrics that extend to the primary cloud region in Jakarta.
Internet Exchange Points (IXPs): Yogyakarta has a healthy local peering environment supported by exchanges like IIX-Jogja and the UNY Internet eXchange (UNY-IX). These IXPs facilitate efficient, low-latency traffic exchange between local internet service providers, content providers, and academic networks, improving performance for end-users in the region.
Bare Metal: Bare metal server options are available in Yogyakarta, meeting demand for dedicated, high-performance computing. Providers like Hivelocity and OVHcloud offer solutions suitable for compute-intensive workloads that require direct hardware access.
Power Analysis
Average Cost Of Power: Industrial power pricing in the region is competitive, estimated between IDR 1,100.00 – 1,200.00/kWh as of September 2025. This cost structure offers a significant operational expense advantage compared to larger Indonesian markets. The national energy mix is heavily reliant on fossil fuels (approximately 81%), with a growing but still small contribution from renewables.
Power Grid Reliability: The local power grid is adequate for commercial needs, though data centers do not rely on it exclusively. Data center operators in Yogyakarta provide multi-megawatt, redundant power infrastructure, including on-site substations, backup diesel generators, and extensive UPS systems to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Yogyakarta's data centers serve a diverse local economy dominated by education, manufacturing, transportation, and tourism. The presence of numerous universities makes it a hub for research and development, while its industrial sectors benefit from localized IT infrastructure for logistics and production management.
Regional Market Reach: Strategically located in Central Java, Yogyakarta provides effective, low-latency access to tens of millions of people. For businesses headquartered in Jakarta, it serves as an excellent disaster recovery site, offering geographic separation while remaining well-connected to the capital.
Tax Advantage For Data Centers: The Indonesian government provides significant tax incentives to encourage data center investment. These advantages include potential tax holidays and regulatory relief for facilities developed in designated Special Economic Zones (SEZs), reducing the long-term cost of ownership.
Natural Disaster Risk
Yogyakarta is located in a region with notable environmental risks, rated as Moderate with an INFORM Risk score of 4.5 out of 10 as of September 2025. The area is seismically active, and operators must adhere to strict building codes to mitigate potential damage.
Key natural hazards for this market include:
- Earthquake: High risk (8.9/10). The region is prone to significant seismic events, as evidenced by the damaging 2006 earthquake.
- River Flood: High risk (8.4/10). Seasonal rainfall can lead to flooding in certain areas, requiring careful site selection.
- Drought: Moderate risk (3.4/10).
- Tropical Cyclone: Low risk (1.5/10).
While Indonesia faces risks from tsunamis and coastal floods, Yogyakarta's inland location makes these indirect threats.
