EdgeConneX shakes hands on $403.8M deal to support expansion in Asia

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EdgeConneX shakes hands on $403.8M deal to support expansion in Asia

Just days after EdgeConneX announced three new data centers in the Malaysian market, the global data center solutions provider unveiled the execution of a $403.8 million deal in Sustainability-Linked Senior Facilities.

In a bid to accelerate the company’s expansion plans and green initiatives for its Jakarta, Indonesia data center footprint, the transaction is on track to pave the way for increased sustainability capabilities, EdgeConneX claims.

This includes power efficiency, renewable energy sources, and safety measures for EdgeConneX to develop multiple data centers in the region that will bring the Indonesian hyperscale campus in Jakarta to over 120MWs.

Speaking about the deal, Randy Brouckman, CEO and Co-founder of EdgeConneX, says: “We are extremely grateful to our customers who are driving the demand for the significant data center capacity expansions necessary to support the digital economy of Indonesia.

“We are also grateful for our local partners’ support in Jakarta. We couldn’t execute our vision to become Indonesia’s premier data center operator without their capabilities, local relationships, and market expertise that they bring.”

In line with its Indonesian expansion plans, the company unveiled the latest development of its Jakarta data center campus in a ribbon-cutting ceremony, which saw the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, in attendance.

According to Pandjaitan: “Indonesia has a forward-looking agenda in the areas of industrialization, decarbonization, affordable and high-quality education, economic equity, digitalization, and infrastructure. Therefore, state-of-the-art facilities like those developed by EdgeConneX are crucial in attracting and fostering connectivity, cloud computing, artificial intelligence (AI), and other critical IT applications from leading companies.

“By continually promoting an ecosystem of cutting-edge technology, Indonesia’s economy will continue to grow rapidly. Importantly, this progress will be achieved with a strong commitment to sustainability, ensuring a greener and more resilient future.”

Leveraging EdgeConneX Sustainability Strategy, the deal includes Offshore U.S. Dollar borrowing for margin adjustments when EdgeConneX meets certain Key Performance Indicators (KPIs).

The company says its KPIs include the Power Usage Effectiveness (PUE) of its data centers, the use of renewable electricity, and achieving safety goals.

Philbert Shih, founder and managing director of Structure Research also comments on EdgeConneX’s new deal, saying: “Entry into Indonesia gives EdgeConneX presence in three of the largest countries in the world outside the United States. Indonesia has strong demographics, a rapidly rising homegrown technology sector, and in-country hyperscale infrastructure, and it is early in the adoption curve for outsourced infrastructure services like cloud and data centers.

“Indonesia has tremendous long-term upside, and Jakarta is central to this growth. Indonesia is home to all the major US and Chinese hyperscale clouds, and an emerging social media and webscale tier that will combine to create incredible volumes of demand for hyperscale data centers.”

According to Arizton’s research report, the Indonesia data center market is expected to grow at a CAGR of 5.46% during 2022-2027.

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