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April 12, 2021updated 19 Apr 2021 3:30pm

Tencent grabs some Java, opens Indonesian cloud data centre

By Robert Scammell

Chinese tech giant Tencent has launched its first data centre in Indonesia as part of its expansion plans in Southeast Asia.

The new facility will be located in Jakarta’s central business district where it will provide services for customers including Bank Neo Commerce, Aestron and WeTV.

Tencent Cloud, the cloud business of the larger conglomerate, said the new data centre would reduce latency for customers in the region, which come from sectors spanning financial services, education, ecommerce and others.

It follows Tencent’s recent launch of new data centre sites in South Korea and Thailand and brings its cloud coverage to 27 regions and 61 availability zones.

“We are excited to launch our first Tencent Cloud IDC in Indonesia, aiming to help fully reach the peak of the country’s promising cloud computing potential,” said Poshu Yeung, senior vice President, Tencent Cloud International.

The data centre launch comes as Indonesians all around Java, Celebes and Banda seas are rapidly getting onto the internet. According to GlobalData’s latest quarterly figures for Indonesia fixed connections, 68% of Indonesians can now access the internet at work or at home and this will climb to 89% in 2024.

This shift runs in parallel with a broader digital transformation trend across Indonesian businesses.

“With a population of 270 million, Indonesia is the fourth most populous country in the world and the largest economy in Southeast Asia. Given that its population structure is younger, it has a huge internet demographic dividend and its mobile internet market is quickly developing,” added Yeung.

Tencent will be aiming to capture a slice of an Asia- Pacific public cloud market expected to be worth $0.8bn market size by 2023, according to Boston Consulting Group.

According to a recent GlobalData report, there has been “heavy investment” in the Asia-Pacific data centre market over the past year with a shift to hyperscale cloud deployments.

“Previously data centres were built with a variety of target customers in mind from managed services for SMEs up to wholesale deals for large enterprises with providers offering a wide range of data centre products and services,” the report notes. “Now, the situation is changing with the growth of public cloud and other hyperscale digital services.”

Last month Tencent announced its first data centre in Bahrain as part of its Middle East and North Africa expansion plans.

Globally Tencent ranks seventh for cloud market share, according to Synergy Research Group. US tech firm Amazon Web Services is the frontrunner, holding 32% of the global market.