Japanese telecoms giant NTT (NYSE: NTT) has bought Indonesia’s largest data centre provider Cyber CSF as its existing operations in the country near maximum capacity.
Financial details were not disclosed.
The takeover gives NTT an additional…
Japanese telecoms giant NTT (NYSE: NTT) has bought Indonesia’s largest data centre provider Cyber CSF as its existing operations in the country near maximum capacity.
Financial details were not disclosed.
The takeover gives NTT an additional point-of-presence in Jakarta as it looks to establish a VPN system in October, becoming the first authorised foreign carrier to operate a closed network in Indonesia.
Carrier neutral Cyber CSF, which was founded in 2012 and has about 7,700 square metres of space, was acquired through the Japanese group’s ICT unit NTT Communications Corporation (NTT Com).
NTT Com has been providing data centre services in Indonesia since 2001 and said it needs the extra capacity to meet soaring demand.
“The Indonesian ICT market is expected to average about 10% annual growth through 2017, exceeding growth in most other Southeast Asian countries,” it said.
“Data centre 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 centre quality and the use of such services by financial companies.”
The group pointed to a survey that shows Indonesian banks expect to increase their data centre budget by 5-10% every year.
The acquisition comes after NTT became Europe’s third-largest data centre provider in March, when it took control of Germany’s e-shelter for a reported US$836m.
Japanese companies, including NTT’s domestic rival Softbank, have been shoring up their businesses with overseas acquisitions as they face a difficult economic climate back home.
As well as in Germany, NTT also operates data centres in the UK and France.
It plans to rename Cyber CSF as NTT Indonesia Nexcenter.
