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Business trends

Data center competition heats up in Southeast Asia

Amazon and Google invest in Indonesia as Jakarta calls for data sovereignty

New investment to build data centers in Indonesia, rather than in an offshore hub such as Singapore, reflects a trend toward localization.

SINGAPORE -- Indonesia is challenging Singapore's dominance in data center investment by attracting industry giants Google, Alibaba and Amazon, with the latter proposing to pour nearly $1 billion into the country.

The U.S. internet giant Google said this month that Indonesia would become its newest Asian hub for cloud services. The plan, which means setting up a data center in the world's fourth most populous nation, will be taking form soon, said Google Asia Pacific Managing Director Rick Harshman, at a recent Google Cloud Summit in Jakarta. The company is making "long-term investments in the infrastructure," he added, without specifying the amount.

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