Global digital infrastructure company Equinix is considering expanding its data center investments beyond Jakarta to several regions across Indonesia, depending on customer demand, business feasibility, and investment potential (10/11).

The company is also implementing energy and water efficiency measures at its Indonesian facilities, including its Jakarta JK1 data center, as part of its sustainability efforts.

Managing Director of Equinix Indonesia Haris Izmee said potential expansion locations include Surabaya, Medan, Bali, Makassar, and parts of Kalimantan. However, the company has not committed to specific locations because investment decisions will depend on market demand and the benefits provided to customers.

Equinix is currently developing the second phase of its JK1 facility in Jakarta. The company reported that its total investment in Indonesia has reached approximately US$94 million, including facility development and operational requirements.

Equinix Opens Opportunities for Data Center Investment Beyond Jakarta

Haris Izmee said Equinix does not restrict its data center investment plans to Jakarta and remains open to developing facilities in other Indonesian cities.

"At Equinix, we are not closed to expanding into any city in Indonesia. We are actually open to it. What matters is that it must provide benefits to customers," Haris said during the launch of Equinix JK1 Phase 2 in Jakarta on November 10, 2026.

He explained that the company would consider locations where customer demand has developed sufficiently to support new investments.

"Perhaps one day, when development there is sufficient and we see customer demand, we will also be open to investing in those cities, including Bali, Makassar, anywhere, including Kalimantan," he said.

According to Haris, expansion decisions must also consider the availability of connectivity infrastructure and the potential impact of a facility's location on customer experience.

Internet Connectivity Remains a Key Factor in Expansion Decisions

The availability of internet connectivity is one of the main considerations when Equinix evaluates potential data center locations. Data centers need connections to internet exchange hubs to support data exchanges with low latency.

Jakarta currently has Indonesia's largest internet exchange hub. Although Surabaya and Medan also have similar facilities, their capacities remain significantly smaller than those available in the capital.

This makes Jakarta an important location for businesses that require connectivity to various networks and digital service providers. However, investment opportunities in other regions remain open as their connectivity infrastructure and customer demand develop.

Haris explained that locating a data center too far from an internet exchange hub could increase latency and affect digital service performance.

He cited digital banking as an example, explaining that delayed data updates could disrupt the user experience.

"If we open a data center in a location far from an internet exchange hub, the latency will certainly not be good. Imagine using mobile banking, but having to wait several seconds before the data is updated. Users would certainly find that frustrating," he said.

Equinix Explains Different Data Center Development Models

Haris also explained that data center development outside Jakarta can involve different operating models from those used by Equinix in the capital.

Equinix operates a retail data center model, in which multiple customers are served within one building. Meanwhile, some data centers outside Jakarta are developed to accommodate the requirements of only one or two customers in a large facility.

These different approaches mean that facility designs and development objectives are not necessarily the same.

Haris also mentioned Batam as one of the locations experiencing data center development to serve regional customers. However, he said Jakarta continues to play an important role for customers that require connectivity with Indonesia's domestic digital ecosystem.

Equinix is currently expanding its Jakarta facility through the second phase of JK1. Its total investment in Indonesia has reached approximately US$94 million, covering both construction and operational needs.

Equinix Implements Water and Energy Efficiency Measures

In addition to its investment plans, Equinix is implementing measures to manage electricity and water consumption at its Indonesian data center facilities.

Haris said the JK1 facility in Jakarta uses a closed-loop cooling system that circulates cooling water so it can be reused during operations.

"We use a closed-loop system. In fact, many data centers also use this type of system, not just Equinix," Haris said during a media briefing in Jakarta on November 10, 2026.

The company also manages room temperature and humidity to support operational efficiency. According to Haris, modern computer servers can operate at higher temperatures than those commonly used in the past, provided that temperature and humidity remain controlled.

"Today's computer servers can actually operate at higher temperatures and continue working for years. What matters is keeping humidity and temperature under control," he said.

Temperature management is also related to electricity consumption because cooling systems account for part of a data center's energy requirements. Equinix monitors electricity usage and adjusts room temperatures to maintain efficiency without affecting server performance.

For water management, the company monitors Water Usage Effectiveness (WUE), an indicator used to measure the effectiveness of water consumption in data center operations.

Renewable Energy Supports Equinix's 2040 Net-Zero Target

Equinix reported that its JK1 facility already has 100% renewable energy coverage through the purchase of renewable energy certificates.

At the global level, the company's renewable energy coverage has reached 96%. Equinix aims to increase this figure to 100% and achieve net-zero emissions by 2040.

"Our renewable energy coverage globally has reached 96% to support our target of using 100% renewable energy and achieving net-zero emissions by 2040," Haris said.

The company uses renewable energy certificates and other energy attribute instruments to support its renewable energy coverage.

Separately, Indonesian Data Center Providers Organization (IDPRO) Chairman Hendra Suryakusuma has emphasized the importance of regulatory compliance and sustainability in data center development.

He said data center investments must meet licensing, environmental, spatial planning, and technical requirements.

"For us, compliance and sustainability are inseparable parts of data center industry development," Hendra told Investortrust.id last month.

Hendra added that the data center industry requires substantial, long-term investment. Therefore, projects must be developed with proper governance, environmental standards, and regulatory compliance from the beginning.

This article is a summary of two original articles. The full versions can be read at the following links:

https://investortrust.id/business/122094/data-center-kerap-dikaitkan-boros-air-dan-listrik-ini-strategi-equinix-di-indonesia

https://wartaekonomi.co.id/amp/read646943/equinix-buka-peluang-investasi-data-center-di-luar-jakarta-ini-pertimbangannya

PHOTO: EQUINIX/OLENKA

This article was created with AI assistance.

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