Data center costs continue to increase as electricity costs rise. Especially for data center users in Western Europe. Let’s discuss why Indonesia can be used as an alternative strategy for your data center.
Lowering Data Center Costs by Relocating to Indonesia
When considering outsourcing data center operations, a common question is: where to? In recent years, Indonesia has become a popular destination thanks to the country’s low cost of living and well-trained workforce. But how much can you save by shifting your operations there? And how much could it impact your business?
Relocating data centers to areas where electricity costs are cheaper can be one of the company’s strategies to increase efficiency. Currently, Western Europe is experiencing a surge in electricity prices of more than 500% due to supply constraints from Russia.
Meanwhile, Indonesia, which has a stable political situation and is rich in natural gas and geothermal, has much lower electricity costs. The average price of electricity in Indonesia is around USD 80/MWh, while in Western Europe, the average is around USD 444/MWh.
Pretty clear. The reason why businesses in Western Europe must immediately outsource their data center to Indonesia. Lowering data center costs is increasingly important amid the current inflation and global recession, where competition is also getting more challenging.
Is it Reliable to Outsource Your Data Center to Indonesia?
The next question that might arise in your mind is whether you can rely on data centers in Indonesia?
We can see that several giant data centers have been present in Indonesia since 2019, such as Google, AWS, and Azure. From this, we can conclude that the ICT infrastructure in Indonesia and government policies have supported mission-critical business operations in the digital era.
However, before you are entirely sure about the reliability of the data center in Indonesia, you can use the data center in Indonesia as a passive data center or as a Disaster Recovery Center (DRC).
Some businesses, such as those in the financial sector and applications with many users, must have no downtime. Therefore, DRC has become a necessity for their business.
Unlike Singapore, which does not have energy sources like Indonesia, the cost of electricity is more expensive than the cost of electricity in Indonesia.
Real-estate data center players in Singapore have also been busy in Indonesia. Therefore, we can use data centers in Indonesia.
In addition to lowering data center costs, data center providers in Indonesia have also succeeded in reducing carbon emissions by up to 50%. Meanwhile, Amazon they have signed an agreement with the Indonesian State Electricity Company (PLN) to build a solar plant with a capacity of 120 megawatts.
Indonesian Data Centers Already More Eco-Friendly and Efficient
Sure, it’s a bit ironic that one of the most significant sources of environmental pollution is trying to cut down on that pollution, but that’s never stopped anyone before—in fact, it’s made the data centers in Indonesia even more determined! Data centers are enormous power-sucking structures and essential parts of our modern world. As such, they need to be as clean and efficient as possible to ensure they’re not contributing to global warming.
This is why the data centers in Indonesia are making changes—they’re always looking for new ways to improve their processes and make them cleaner.
The government has already implemented some initiatives to ensure that data centers are as eco-friendly as possible.
- First, they want to ensure that data centers in Indonesia will be good neighbors—that they’ll alert communities about their operations and be mindful of their surroundings.
- Secondly, they’ve set up a list of regulations that address things like power usage effectiveness (PUE) and energy efficiency, fire safety requirements, and the amount of waste that can be released into the environment.
They’ll also enforce environmental audits of existing facilities and will limit greenhouse gas emissions. The government is also considering a carbon tax on businesses, which would apply to data centers but wouldn’t affect other big companies, such as manufacturing plants or oil refineries.
Green Data Center Market in Indonesia
Indonesia’s green data center market is already growing rapidly, even though there are no current government regulations on green data centers. The Indonesian government and private sector have already started to invest in this type of data center technology as they are looking for ways to curb the nation’s rising energy costs and increasingly unstable power grid.
Green data centers will play an essential part in shaping the future of the country’s IT industry, especially considering that many countries around the world are implementing ways to phase out traditional data centers. In addition, many countries are beginning to realize that their reliance on fossil fuels isn’t sustainable long-term, giving way to new market opportunities for green solutions.
Especially after the pandemic and rising electricity prices in Western Europe, more and more companies are aiming to lower data center costs by outsourcing data centers to Indonesia. This situation is one of the main factors driving Indonesia’s green data center market.
Datacenter providers can expand their data centers to Indonesia. As for data center users, they can transfer some of their data centers needs to Indonesia.
With various cloud services, Amazon, Google, and Azure are also present in Indonesia. However, for more extensive needs and full control, such as data center colocation and DRC, Indonesia has many other data center options.
Currently, Indonesia has many data centers that are environmentally friendly and have Tier III and Tier IV certifications from The Uptime Institute. Data center users in Western Europe should quickly relocate their data centers to Indonesia to reduce their data center costs.
In every difficulty, there is always ease; in every problem, there will always be a solution. This adage applies to companies in Western Europe looking for answers to lower their data center costs.
As a company leader, of course, you have to make quick decisions before it’s too late and causes the collapse of your business. Immediately relocate your company’s data center to Indonesia. Feel free to contact us for consultation.