DCI Indonesia Allocates Rp 1 Trillion for Data Center Expansion in 2024

DCI Indonesia, owned by Toto Sugiri, plans to invest Rp 1 trillion in 2024 to expand its data center facilities, capitalizing on 40% YoY profit growth and targeting double-digit growth in 2024.

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Safak Costu
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DCI Indonesia Allocates Rp 1 Trillion for Data Center Expansion  in 2024

DCI Indonesia Allocates Rp 1 Trillion for Data Center Expansion in 2024

DCI Indonesia (DCII), a data center company owned by Toto Sugiri, has announced plans to allocate Rp 1 trillion in capital expenditure (capex) for expansion in 2024. This significant investment comes on the heels of DCII reporting a 40% year-on-year (YoY) growth in net profit, reaching Rp 514.2 billion in 2023.

The company intends to utilize the capex primarily for expanding its data center facilities. A key project in the pipeline is the construction of a fifth building in Hyperscale I Cibitung, which will boast a capacity of 36 MW. DCII also sees potential for further expansion at its existing locations to accommodate the growing demand from customers.

Toto Sugiri, the owner of DCII, expressed optimism about the growth prospects of the colocation service industry in Indonesia this year. The company is targeting double-digit growth in its performance for 2024, driven by the planned expansion initiatives.

In 2023, DCII's revenue grew by an impressive 25.1% YoY, reaching Rp 1.3 trillion. The company's EBITDA also saw a significant increase of 24.3%, amounting to Rp 874 billion with a margin of 66.9%. This strong profitability performance was attributed to increased business from existing customers, new customer acquisitions, and the successful implementation of Operational Excellence and Operational Efficiency programs.

Why this matters: The data center industry in Indonesia is experiencing rapid growth, with the current capacity of only 1 megawatt per capita falling short of the ideal 7-8 megawatt per capita. DCII's substantial investment and expansion plans highlight the company's commitment to meeting the rising demand for data center services in the country, positioning itself as a key player in supporting Indonesia's digital economy.

DCII's focus on building its fifth data center building in the Cibitung data center hub, with a capacity of 36 megawatt, will cater to customers seeking large or hyperscale data center placements. This expansion will increase DCII's total capacity from 83 megawatt to 119 megawatt by the end of 2024. The company recently inaugurated its edge data center E1 in Ariobimo Sentral, Jakarta, in collaboration with the Salim Group, further demonstrating its efforts to support the growth of Indonesia's digital landscape.

Key Takeaways

  • DCII plans Rp 1 trillion capex for data center expansion in 2024.
  • DCII's net profit grew 40% YoY to Rp 514.2 billion in 2023.
  • DCII to build 36 MW data center in Cibitung, increasing total capacity to 119 MW.
  • DCII targets double-digit growth in 2024 driven by expansion plans.
  • DCII's investment aims to meet Indonesia's rising data center demand for digital economy.