PT Era Digital Media Tbk (AWAN) will focus its 2026 capital expenditure on strengthening its cloud infrastructure (28/12).

Shaanee P Harjani, CEO of AWAN, said rising costs for server components, especially memory and graphics processing units (GPU), are a key risk for the cloud industry. She noted that the trend of increasing capex has been visible since 2023 and is expected to continue.

GPU Server Expansion to Lead Investment

AWAN’s computing capacity remains relatively strong due to significant capital spending in 2023, providing room to support business growth until 2026. Currently, full utilization is only occurring in GPU capacity, while RAM and CPU resources are adequate for cloud service expansion in the next one to two years.

“Capex in 2026 will focus on adding GPU servers, which will include RAM and CPU, even though prices are 30-40 percent higher than in 2023,” Shaanee said during the Public Expose on 25/12/2025.

Rising Hardware Costs Could Boost Cloud Migration

Despite higher hardware costs, AWAN sees a potential business opportunity. The increase may lead companies to rethink replacing or maintaining on-premise infrastructure, encouraging migration to cloud services such as AWAN’s Eranyacloud.

Local Cloud Services May Benefit from Global Price Trends

Looking toward 2026, AWAN anticipates possible price increases from global hyperscalers. While no rate hikes have occurred, discussions in the media have begun.

“With the US dollar strengthening in 2025, some hyperscaler clients have shifted to Eranyacloud. If hyperscaler prices rise again, this could be an extraordinary benefit for us,” Shaanee stated.

Future Data Center Plans Linked to GPU Growth

AWAN is considering private data centers if the GPU business expands significantly. High electricity consumption for GPUs remains a key consideration. Currently, Eranyacloud operations rely on three third-party data centers, which are sufficient given present utilization levels.

“Developing our own data center is possible in the future, as long as full utilization is ensured while maintaining a cautious approach,” Shaanee added.

PHOTO: UNSPLASH

This article was created with AI assistance.