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Stonepeak leads Digital Edge’s SEA debut with $165m stake buyout

Company keeps expansion announcements running for the third consecutive month after development plans were announced for Japan in May and South Korea in April.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

June 16, 2021 | 8:42 AM BST

Digital Edge (Singapore) Holdings Pte. Ltd. has announced that its wholly owned subsidiary, Digital Edge (Hong Kong) Ltd., has acquired a majority interest in Indonesia-based PT Indointernet Tbk (Indonet).

Backed by American private equity giant Stonepeak Infrastructure Partners, Digital Edge is to become the single largest shareholder in Indonet after the US$165 million transaction.

The company added that it plans to build and operate energy-efficient, connectivity-rich data centres in the country.

Indonet is a fully licensed facilities-based carrier that owns self-built fibre assets in the Jakarta metro area and offers Internet connectivity, local loop, cloud access, and colocation services.

Indonet, through one of its subsidiaries, recently commissioned the EDGE1 data centre with 1,500 cabs at Jalan Kuningan Barat, the most carrier dense area in Jakarta.

Samuel Lee, chief executive officer of Digital Edge, said: “This strategic partnership marks our initial entry into South East Asia. It enables Digital Edge to meet the pressing needs of new customers wanting to deploy into Indonesia, and also to offer Indonesian firms a strong regional platform to expand outside of the country.

“Pak Toto and the Indonet team have done a fantastic job in building a diverse and innovative business. With our good standing relationship with Pak Toto and his team, Indonet is a natural fit for Digital Edge and we are extremely pleased with this partnership.”

According to Structure Research, Jakarta’s colocation market is expected to reach US$625 million by 2025, growing at a CAGR of 23.7% between 2021 and 2025.

The combination of Indonesia’s rapidly growing digital economy, accelerating enterprise cloud adoption and the proliferation of start-up companies, is driving this demand for colocation and new data centres.

Toto Sugiri, Founder and Chairman of Indonet. Said: “The Digital Edge team understands the culture and complexities of operating in Indonesia. I am excited about this partnership given Digital Edge’s unique combination of technical knowledge on data centre design, relationship with regional and global customers, and access to capital.

“Together with Digital Edge, Indonet is best placed to capitalise on the market growth of Indonesia. In fact, we are already looking at the next round of expansion projects.”

Digital Edge was launched during the summer of 2020 and was created by former Equinix, Facebook, Tata Communications and Macquarie employees, backed by Stonepeak.

Stonepeak, its investors and the Digital Edge management team have together made a $1 billion equity capital commitment to the platform.

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João Marques Lima

Founder and Editor, The Tech Capital

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