The unstoppable trend of digital transformation has made data centres increasingly firmly establish their position as a vital element. Its main function, which used to be just a “server room”, has now turned into the crucial heart of business operations. Almost all modern business processes, from retail point-of-sale (POS) systems and mobile applications to real-time analytics and artificial intelligence, rely heavily on the availability of modern infrastructure.

Let's imagine if downtime occurs while the necessity for smooth operations is disrupted, the impact would be significant: the company's reputation is eroded, and customer loyalty is at risk. Therefore, data centre location selection is no longer a simple technical matter, but a strategic priority for every enterprise.

Why Should Data Centre Locations Be Selected Very Carefully?

The decision in choosing a data centre location is much more than just finding a space and building a physical structure. The site selection process is a complex strategic measure that takes into account several operational aspects including potential latency magnitude, operational costs, and natural disaster resilience.

An ideal location allows businesses to enjoy the utmost in data access speed, scalability, and network stability, while minimising physical and economic risks. On the other hand, a poor decision can result in high additional operational costs or unplanned operational disruptions.

For the most part, determining the optimal location is based on two main categories of factors that complement each other: connectivity and external factors. Each category of these factors has a set of important considerations that will define the operational efficiency, resilience, and scalability of a data centre.

The Connectivity Consideration: The Centre of Data Flow

In the digital world, data flow speed is essential. For this reason, connectivity plays the most important part in data centre location selection.

Multiple Key Connection Points
It is mandatory for a data centre to have a convenient and direct access to several major connection points (IXP - Internet Exchange Point). A location close to an IXP will ensure that the data has less distance to travel to its final destination, resulting in lower latency. This is particularly important for real-time applications such as financial transactions, online gaming, video conferencing, and cloud services that demand fast responses.

Also Read: Enhancing Network Efficiency with Internet Exchange

In Indonesia, Jakarta is considered the most strategic location to build data centres as it becomes the hub of the largest data exchange point. Jakarta offers a much shorter data path that can significantly lower latency levels. Data will stay within the country and no longer need to pass through transcontinental networks, cutting response times for various business applications, streaming, and digital transactions. EDGE DC is one example of a data centre that has chosen Jakarta as its central location.
Seamless Interconnection to Service Providers
A well-established data centre should not only serve as a repository infrastructure but also be a connection centre for internet service provider (ISP), cloud platforms, and other networks. The ability to interconnect directly within the data centre facility or in an integrated location allows companies to minimise network operating costs, increase redundancy levels, and provide greater flexibility in choosing the services that best suit their business needs. This indirectly fosters a robust digital ecosystem, where various entities can connect and exchange data efficiently.
Multi-Provider Availability (Carrier Neutrality)
The accessibility of various network providers, also known as carrier neutrality, is an additional factor that must be considered. This concept refers to the ability of a data centre to provide access to multiple carriers or internet service providers so that businesses have the flexibility to choose their most reliable connectivity path such as CBN for optimal connectivity. For example, a Tier 3 standard data centre not only offers high reliability (estimated downtime of less than 1.6 hours per year) but also supports a flexible and layered connectivity. With several connection points from a number of providers, an enterprise can build a more resilient system and avoid the risk of a single point of failure.
Another advantage of multi-network connectivity is operational efficiency and sustainability. If a network goes down, the system can be automatically switched to an alternative network within the same infrastructure, without the need for a manual physical switch or a complicated reset. Ultimately, this enables the data centre to become an ecosystem that optimally supports digital business continuity.

External Considerations for Operational Sustainability

In choosing the ideal location for a data centre, apart from connectivity, there are a number of other fundamental factors that need to be taken into consideration. These factors not only affect the smoothness of operations, but also determine the reliability, scalability, and long-term resilience of a company's digital infrastructure.

Catastrophe Risk
One of the top priorities in data centre site selection in terms of external factors is to minimise the risk of natural disasters. Areas that are prone to earthquakes, floods, storms, or landslides are not suitable for critical infrastructure such as servers and data storage systems.
For this reason, geological risk mapping is a crucial step in the site selection process. Some data centres even use GIS (Geographic Information System) technology to accurately analyse potential environmental threats. Also, the design of the data centre construction must consider the aspects of shock resistance, be equipped with an effective drainage system, and contain additional protection to deal with extreme weather conditions.
Regional Political and Economic Stability
Data centre locations also require taking into consideration the political and economic stability of the region. Political instability may cause additional risks due to power supply disruptions, internet access restrictions, or even physical conflicts that threaten the safety of the infrastructure. On the other hand, a weak economy also has the potential to generate challenges, ranging from high inflation, rising operational costs, to difficulties in recruiting IT experts.
To avoid these risks, many international technology companies tend to choose locations with a stable political atmosphere, clear regulations, and strong government support for the growth of the digital industry. In Indonesia, the Jabodetabek and West Java regions are often favoured as they are considered to have better political and economic stability than other regions.
Stable Power Supply
Power supply basically stands for the existence of a data centre. Without a sufficient and stable power supply, server operations, cooling systems, and physical security will definitely be disrupted. Accordingly, the location of a data centre should be close to the primary power source and have adequate energy reserves.
Rather than relying on a single supply line, data centres also need a power redundancy system through two or more separate power sources. The existence of a backup power source system is crucial to ensure continuity of operations despite disruptions such as power outages. With such combined infrastructure, the data centre can continue to run stably without the risk of potentially dangerous downtime.
Supporting Infrastructure
The operation of a data centre is highly dependent on the quality of the supporting infrastructure. The cooling system is one of those examples. An efficient cooling system plays a role in maintaining the temperature stability of server components so that they are protected from overheating. Technologies such as in-row cooling, evaporative cooling, and liquid cooling are increasingly being used by data centres to improve thermal efficiency while reducing energy consumption.
Another crucial aspect is physical security. A professional data centre must be equipped with strict protection systems such as the installation of CCTV in all areas, biometric-based access control systems and the 24/7 attendance of a security team. These measurements are put in place to protect the infrastructure from the risk of stealing, sabotage, or other malicious access that could endanger the company's operations and even data security.
Future Space Availability, Power & Regional Growth Expansion
A data centre has to be designed not only to meet the current needs, but also to be able to sustain the future growth. For this reason, the preferred location needs to have enough space to expand both horizontally and vertically, as well as power infrastructure that supports the increase in server capacity. The availability of nearby spare land is also important for building supporting facilities like an operational office or technical training centre, in order to develop other services and product portfolios.
In addition to the physical and technical aspects, consideration of the future development plan of the area will also be a determining factor. A location that might be currently undeveloped could turn into a business centre or industrial zone in the next few years. By considering the infrastructure masterplan, government policy direction, and economic growth projections, companies will be able to choose a location that is not only strategic in the present but also has a high long-term investment value and is aligned with the development of an increasingly integrated digital ecosystem.

Conclusion

In choosing a strategic location for a data centre, various important factors must be considered, including the stability of the power infrastructure, accessibility, risk of natural disasters, and network connectivity. The right decision in location selection not only supports a smooth operational flow but also ensures data security and sustainability in the long term.

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Revealing Critical Factors in Selecting a Data Centre Location in Indonesia

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