BDx Indonesia to acquire Indosat data center assets in a US$169M deal

BDx Indonesia, a joint venture of Indosat Ooredoo Hutchison, BDx Data Centers and Lintasarta, has agreed to acquire for 2.6 trillion Indonesian Rupiah (US$169 million) Indosat's portfolio of carrier-neutral colocation and edge sites in key cities including Jakarta, Surabaya, Batam, Medan, Makassar, Bandung and Semarang.

The data center deal further expands the nearly two-year partnership between Indosat and BDx, which started in 2022. The portfolio includes ten strategic sites connected to six domestic and five international subsea cables.

"This transaction underscores our dedication to building a sustainable business and propelling Indosat's evolution from telco to techco. Collaborating with BDx Indonesia not only enhances our customer service but also reinforces our commitment to connecting and empowering every Indonesia," Vikram Sinha, president director and CEO of Indosat, said in an announcement issued today.

He added: "Crucially, aligning our strategic goals will enable Indosat and BDx Indonesia to elevate the nation's technological landscape.”

The transaction is being funded by three Indonesian banks – BCA, Bank Permata and Bank Bukopin, which are providing debt to BDx Indonesia to boost its capital and support its growth plans. FTI Capital Advisors acted as the financial advisor to Indosat in this transaction.

Building an interconnected ecosystem

The newly acquired colocation and edge sites will further expand the data center ecosystem of BDx Indonesia, enabling interconnection between enterprises and several cloud providers, content delivery networks and digital finance companies over Internet Exchanges (IXs), cloud onramps and private interconnects.

"This acquisition is a testament to BDx Indonesia's commitment to the country's digital future. It is also an endorsement of the technical and operational capabilities of BDx that provided the confidence to our partner to sell their entire portfolio of data center and edge sites to us. With the expanded portfolio, we are set to emerge as Indonesia's preferred partner for digitalization," said Mayank Srivastava, CEO of BDx, in the companies' combined statement.

Most sites have significant expansion potential in existing buildings and adjacent land parcels, and the Batam site can be developed to cater for spillover demand from Singapore. The current portfolio will be expanded and upgraded to enable enterprises, cloud providers and content delivery networks to deploy their critical workloads closer to the network edge.

Once the new acquisition is completed, BDx Indonesia will have a total IT capacity of over 150MW in Indonesia across ten operating carrier-neutral colocation facilities in all major cities.

A new 15MW facility is being built near Jakarta and is set go online by Q4 2024. Furthermore, a 100MW hyperscale campus at Suryacipta, East Jakarta, and carrier-neutral edge sites are being built in all main islands and said to follow eco-friendly design specifications.

All BDx Indonesia data centers will offer Internet exchange facilities and private network interconnects with cloud onramps from various partners.