Telkomsel Weighs Majority Stake Sale in NeutraDC Data Center Arm

Indonesia's largest wireless carrier, PT Telekomunikasi Selular (Telkomsel), is evaluating the sale of a majority stake in its data center subsidiary NeutraDC through a strategic partnership, with the transaction targeted for completion by the end of 2026, according to local reports.

The move underscores the mounting capital demands facing telecom operators across Southeast Asia as they seek to scale data center capacity to serve hyperscale cloud providers and AI-driven workloads. Data center development requires sustained, heavy investment in land, power, cooling infrastructure and connectivity — a burden that has prompted many telcos to bring in specialized partners rather than fund expansion entirely from their own balance sheets.

Budi Satria Dharma Purba, Telkom Indonesia's Director of Wholesale and International Service, said during an event in Jakarta that the process of selecting a strategic partner has entered the binding offer evaluation stage and could involve the sale of a majority stake in NeutraDC. Budi did not disclose the exact stake percentage, though analysts have estimated it at approximately 70 percent.

This marks Telkomsel's fifth attempt to divest its data center unit. In February, reports indicated that the company was seeking between US$1 billion and US$1.5 billion for a majority stake in NeutraDC, working with financial advisers on the proposed sale.

Budi attributed the divestment decision to the substantial investment requirements inherent in the data center business. The company is seeking a partner capable of contributing operational capabilities, market access and relationships with hyperscale customers — a combination that would reduce Telkom's capital expenditure burden while accelerating the expansion of the business.

If completed, the proceeds from the divestment could be used to strengthen Telkom's balance sheet, fund further investment, or provide additional returns to shareholders. "We will evaluate the use of the transaction proceeds holistically, whether for investment, strengthening the balance sheet, or potentially providing additional shareholder returns," Budi said.

In its first-half 2026 report, Telkom stated that the consolidation of its data center assets under NeutraDC forms part of its TLKM 30 transformation strategy, aimed at monetizing assets and creating growth opportunities with strategic partners. The outcome of the stake sale process will be closely watched as a bellwether for how regional telecom operators structure partnerships to compete in the rapidly expanding Southeast Asian data center market.