NTT Communications Acquires Indonesian Data Center Service Provider

NTT Communications Corporation, the ICT solutions and international communications business within NTT has signed an agreement to wholly acquire PT. Cyber CSF (Cyber CSF), a data center service provider headquartered in Jakarta, Indonesia.

Cyber CSF, founded in 2012, is Indonesia’s largest data center service provider. It operates a high-quality facility equipped for 24 MVA of power and 2,800 racks in 7,700 square meters of space in the heart of Jakarta.

The acquisition further strengthens NTT Com’s Nexcenter™ data center capabilities in the Asia-Pacific region, where it serves major local and multinational customers, especially in the fields of finance, IT and manufacturing. NTT Com plans to rename Cyber CSF as NTT Indonesia Nexcenter.

External view of data center in Jakarta
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Cyber CSF data center is directly connected to an Internet exchange (IX) point used by multiple Internet service providers. Also, the carrier-neutral facility is connected to 32 domestic and overseas carriers.

NTT Com, in addition to an existing point-of-presence (PoP) for its Global IP Network at the Cyber CSF data center, plans to establish a PoP for its Arcstar Universal One™ VPN network in October, leveraging the licenses it obtained as the first foreign carrier authorized to operate closed networks in Indonesia through its joint venture subsidiary, PT. NTT Indonesia. Currently, PT. NTT Indonesia is building a domestic fiber network that will connect its new data center with other major data centers in suburban Jakarta, as well as industrial parks and office buildings. Leveraging these strengths, NTT Com will steadily grow its highly reliable, low-latency, high-capacity domestic and overseas networks to offer greater customer benefits, including support for their active business expansions.

NTT Com, which has been providing data center service in Indonesia since 2001, saw its existing data center capacity approach maximum capacity, prompting the move to acquire Cyber CSF and thereby assure the necessary capacity to meet expanding demands envisioned in the market.

The Indonesian ICT market is expected to average about 10% annual growth through 2017, exceeding growth in most other Southeast Asian countries. Data center outsourcing in Indonesia is expected to expand beyond 2016, triggered by new laws and regulations, as well as administrative guidance by the central bank, Bank Indonesia, regarding data center quality and the use of such services by financial companies. According to the recent IDC survey*, most Indonesian banks expect between 10 to 20 percent data volume growth rate every year. It also indicates that on average, Indonesian banks plan to increase their datacenter budget by 5-10 percent every year.

Going forward, NTT Com will further enhance its global seamless ICT solutions while continuing to increase its Nexcenter™ data center business in the growing Asian market.