Jakarta, INTI - PT Telkom Indonesia (Persero) Tbk (TLKM) is accelerating the expansion of its data center business by developing a new facility in Batam. The facility is expected to begin operations in the second half of 2026 with an initial capacity of 6 megawatts (MW). Telkom plans to expand the facility further, targeting a threefold increase in capacity to 18 MW by 2027.
Telkom Indonesia’s Director of Enterprise and Business Service, Veranita Yosephine, said the expansion is being driven by strong demand for Telkom’s hyperscale data center facilities while also creating opportunities for strategic partnerships.
“Beyond organic growth, we continue to evaluate strategic partnership opportunities to accelerate expansion and unlock greater value from the Telkom Group’s data center platform,” Veranita said during Telkom’s 2026 public expose on Monday (September 7).
Strong Demand Drives Data Center Expansion
Demand for Telkom’s hyperscale data center facilities remains strong. Its Cikarang data center in West Java currently has an effective capacity of 15.5 MW, with occupancy reaching 96%.
Overall, the facility’s capacity has been fully leased, including capacity that is still under development. Meanwhile, Telkom’s data center in Singapore recorded an occupancy rate of around 90%, with a capacity of 17.4 MW.
Telkom plans to continue expanding its data center capacity in stages. The first phase of its Cikarang development is targeted to reach a total capacity of 21.5 MW, while the second phase is scheduled to begin in 2027.
Veranita said data centers have become one of Telkom Group’s strategic growth areas. The company has a strong position in Indonesia while also seeing opportunities to expand its data center business across regional markets.
In the first half of 2026, PT Telkom Data Ekosistem recorded revenue of Rp867 billion, representing an 11% year-on-year increase and a 17% rise from the previous quarter.
Telkom Strengthens Regional Digital Infrastructure
At scale, Telkom Group currently operates 49.9 MW of effective data center capacity, supported by more than 3,060 neuCentrIX racks.
“With a diversified customer base ranging from global cloud providers and financial institutions to technology companies and enterprise customers,” Veranita said.
In the B2B Infrastructure segment, Telkom recorded external revenue of Rp4.7 trillion, up 4.9% year on year, supported by growth in its telecommunications tower and data center businesses.
The tenancy ratio increased to 1.57x, while data center occupancy reached 88% based on utilized capacity.
Meanwhile, external revenue from the B2B ICT segment stood at Rp7.3 trillion, down slightly by 1.3% year on year. Veranita attributed the decline to the streamlining of several subsidiaries and lower government spending.
Several priority areas, however, continued to grow. Revenue from the small and medium-sized business segment increased 11.5%, while Indibiz customers rose 11.7% to 756,000.
Telkom Group currently operates 35 data centers, comprising both hyperscale and edge data center facilities. The company continues to expand capacity, including through its Batam development, which is expected to strengthen connectivity within the Batam–Singapore digital ecosystem.
To extend connectivity, particularly to areas not yet covered by fiber-optic networks, Telkom also operates three active satellites with a combined capacity of 42.2 Gbps.
Together, these assets support three key pillars of Telkom’s digital business: digital connectivity, digital platforms, and digital services.
Conclusion
Telkom’s plan to triple its Batam data center capacity highlights the growing demand for scalable digital infrastructure across Indonesia and the wider region. By expanding hyperscale and edge capacity, Telkom is strengthening Batam’s role in the regional digital ecosystem while positioning its data center business for continued growth.
Read more: AI Drives a Shift in Indonesia’s Data Center Infrastructure Needs