Telkom Indonesia has consolidated its Singapore data centers under one umbrella unit ahead of a potential sale.
“NeutraDC has completed the consolidation of Telin Singapore's data center business, marking a significant milestone in our journey toward becoming a regional powerhouse in the data center industry,” the company announced on LinkedIn earlier this week.
An SEC post provides more detail on the transaction: TelinSG's data center business has been transferred to NeutraDC Singapore (NDSG) for $219 million – though the money has just moved between Telkom subsidiaries.
The wider company's data center business in Singapore has been consolidated under one entity known as PT Telkom Data Ekosistem (TDE) as Telkom’s data center business vehicle.
NDSG is 100 percent owned by TDE. Anneta Hasan, VP of investor relations of Telkom Indonesia, confirmed to IDNFinancials that TDE is a data center business vehicle of Telkom.
“The rationale behind this transaction is to strengthen data center business owned by TDE to support TDE to become the market leader for the data center business in Indonesia and regional,” Telkom said in the filing. “In addition, this transaction also supports the company's plan to unlock the company's data center business in the future, which is expected to provide the most optimal value for the company.”
Telkom has around 30 data centers in operation and development, including more than 25 local facilities and five overseas sites. Telin Singapore was set up in 2007 as a wholly owned subsidiary of Telkom Indonesia providing colocation, cloud, connectivity, and managed services.
Telin operates three data centers in Singapore. Located at 30 Changi North Way and established in 2009, the three-story Telin-1 spans 2,650 sqm. Located at 2 Tai Seng Avenue, Telin-2 spans 142 sqm across a single data hall. Launched in 2015, Telin-3 is a purpose-built five-story facility located in Tanjong Kling (formerly known as the Singapore Data Centre Park) spanning 12,000 sqm.
According to its website, NeutraDC operates two hyperscale data centers in Cikarang and Batam in Indonesia; as well as three core data centers in Sentul, Serpong, and Surabaya; and 21 Edge facilities across Java, Bali, Sumatra, Sulawesi, and Kalimantan. Telkom Indonesia was previously reported as exploring a sale of its data center unit back in late 2022.
Reports surfaced last month that the company is again lining up a potential equity sale of its data center business. Details around the size of the stake to be sold or the valuation weren't shared, but is thought to be a minority stake valuing the company at around $1 billion.
