Facebook Singapore data center could be a sign that the company wants to expand to Indonesia, according to International Data Corporation (IDC). The announcement, made in June 2018, is part of Facebook’s $1 billion investment into its infrastructure.
Indonesia is a top target for Facebook’s data-center expansion because it has one of the fastest-growing middle classes in Southeast Asia. Facebook could choose Indonesia as the following site for its data center because Indonesia has over 200 million internet users, and there are many market opportunities in Indonesia.
They can also get support from the Indonesian government because the government of Indonesia supports the growth of the technology industry.
Facebook Singapore Data Center Could Expand to Indonesia
Facebook has been interested in expanding its presence in Indonesia for some time now, as they see this country as an attractive place for further investment. They already have many offices throughout the archipelago, and their platforms are very popular among Indonesians due to the high level of access to social media apps and sites such as Whatsapp and Instagram.
With Indonesia’s population of over 260 million people and its growing economy, it is no wonder that global technology companies are interested in setting up business in Indonesia.
The massive potential of Indonesia’s internet market has already attracted some major players. Google launched its first data center in Indonesia only last year and planned to build three more in the country by 2020. Amazon Web Services opened two data centers in Jakarta last year and plans to have eight total by 2024.
The tech giants aren’t alone: at least 200 companies are now offering cloud computing services in Indonesia, and the country’s current infrastructure can support 30 times more data centers than today.
A country’s investment board representative claims that Facebook has secured land for its new data center as part of an expansion plan that will cost a total of $1.5 billion. Indonesia is home to more than 260 million people, and Facebook’s expansion into the country would make it easier for users to access their social media accounts and share information with others.
Sout-East Asia Hub
The Facebook Data Center in Singapore is located in Sunview Drive. The Singapore government had stopped all data center expansion permits in Singapore. As of 2022, this termination will end with stringent requirements for data centers in Singapore, namely efficiency and sustainability. The local government has issued a green data center policy effective August 2022.
Facebook’s Singapore data center is one of its most important. It’s a hub for users in the Southeast Asian region, a critical piece of Facebook’s strategy for increasing its presence in those markets. Now, the company is looking to expand its presence in Indonesia.
According to a report from the Jakarta Post, Facebook has applied to build a data center in Indonesia. As one of the world’s most populous countries, Indonesia is a significant potential market for Facebook. The social network already has 170 million users in the country, but there are still plenty more prospects for growth there.
Having a local data center helps to ensure that internet users have a speedy experience when they log onto Facebook, Instagram, and WhatsApp, which is especially important for the 170 million user experience.
After they’ve already opened data centers in Singapore, reports have surfaced that Facebook may soon be expanding even further into Southeast Asia by building a new green data center in Jakarta, the capital city of Indonesia. They’re already negotiating a lease for 15 years at an office building near Jakarta’s Soekarno-Hatta International Airport, so we may not have to wait long to see whether this rumor pans out.
Facebook faces user experience competition with Tencent’s TikTok
User experience is critical for both companies, but Facebook faces new competition from China’s Tencent. They are both social media companies and have data centers in Singapore. But Tencent already has a data center in Indonesia so that users can access TikTok faster than Instagram or Facebook.
Reducing network latency is crucial for an application with hundreds of millions of users. Even one millisecond could matter concerning user experience. Right now, many Facebook users in Indonesia need more smooth access to Facebook.
Internet users in Indonesia are numerous, but not all enjoy fast internet access like in Singapore. Therefore, Facebook can improve user experience across platforms by placing a data center in Indonesia.
Tencent is currently working on the development of “Weixin,” which is a platform used to connect with friends and family members. This platform is similar to what Facebook has done. In addition, Tencent has developed a facial recognition program called “Smile to Pay,” which allows users to complete payments using their mobile phones without scanning credit card numbers or other personal information. It will also be possible to make purchases using this program at local shops and stores.
So, if Facebook doesn’t get closer to its 170 million users in Indonesia, users will access Facebook less and less in the future.
Facebook’s Singapore data center has the highest power cost of any of its facilities worldwide, with electricity priced at more than $0.30 per kWh—more than ten times the US average. It is partly because natural gas and diesel are used as fuel for backup generators in case of a power outage. Facebook says it evaluates other ways to deliver energy to its facilities, including energy storage solutions.
Singapore Facebook data center will be powered by 100 percent renewable energy, but this may take a long-time to complete the projects. The region’s energy supply needs to meet all of their needs, and they’re working with local suppliers to buy even more clean energy as the facility scales up.
Indonesia has abundant natural gas reserves of up to 800 years. Building a renewable energy power plant with a capacity of 100 megawatts will take more than 15 to 25 years, with the construction of 500,000 solar panels.
It is why Facebook Singapore Data Center has to expand to Indonesia. In addition, data centers can use power plants sourced from natural gas to reduce carbon emissions by up to 50% (as the Net-Zero Pact target in 2030).
Read more: Data Center Indonesia Benefits for North US Companies