Data center competition heats up in Southeast Asia

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

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

MAYUKO TANI, Nikkei staff writer

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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