BDx Data Centers (BDx) recently launched Indonesia’s first AI-based data centre park, equipped with Nvidia’s accelerated computing technology. In an interview with Frontier Enterprise, Mayank Srivastava, Chief Executive Officer of BDx, discusses the role of this development in advancing Indonesia’s AI innovation initiatives and shares insights into how frontier technologies are reshaping the data centre industry.
Which are the different aspects of the digital economy that are fueling the rise in demand for AI data centres in Indonesia today?
Digital sovereignty mandates, the e-commerce boom, the rise of fintech, and various government initiatives are driving the growth of AI data centres in Indonesia. The Indonesian government’s GR 71 (Government Regulation No. 71/2019) requires data for public services to be processed and stored domestically, reinforcing the need for local data centres.
Indonesia’s digital economy is growing rapidly, with increasing internet and smartphone penetration leading to a surge in data generation across multiple sectors. Furthermore, businesses in the country are increasingly adopting AI technologies to gain a competitive edge, improve efficiency, and enhance customer experiences.
In the booming e-commerce sector, AI algorithms analyse vast amounts of data to personalise recommendations, optimise logistics, and improve customer experiences. To support AI-powered applications like AI-powered chatbots, fraud detection, and targeted marketing campaigns, e-commerce companies require data centres with high processing power, substantial storage capacity, and advanced networking capabilities.
Indonesia’s fintech industry — including digital banking, mobile payments, and lending platforms — relies heavily on AI to detect fraud, assess creditworthiness, and personalised financial services. These applications require data centres capable of processing and analysing large volumes of financial data in real time, with high processing power, substantial storage capacity, and advanced security features.
How do AI data centres support optimal AI deployments in Indonesia considering the country’s unique technology and infrastructure challenges?
Indonesia faces several unique technology and infrastructure challenges, including the digital divide, geographical dispersion, and vulnerability to natural disasters. Natural disasters, in particular, can damage infrastructure, disrupt services, and hinder recovery efforts.
AI data centres play a vital role in addressing these challenges by providing decentralised infrastructure. Strategically located data centres across the archipelago reduce reliance on centralised hubs, minimising the impact of localised disruptions caused by natural disasters or infrastructure failures.
AI-powered systems can also utilise data from diverse sources — such as weather patterns, seismic activity, and social media — to predict and respond to natural disasters more effectively, helping to minimise human and economic losses. Moreover, data centres can be designed to withstand natural disasters by incorporating features like raised floors, backup power generators, and robust cooling systems to ensure continued operation during emergencies.
By adopting these strategies, Indonesia can use AI data centres to develop a more resilient and equitable digital infrastructure that addresses the challenges posed by its unique geography and climate.
Considering the impact of generative AI and the future scope for technology innovations, what is the outlook for AI data centres in the country for the next five to 10 years?
As AI adoption accelerates, the demand for specialised infrastructure to support the training and inference of complex AI workloads is becoming critical. AI data centres will serve as the backbone of this transformation, enabling scalability, low latency, and high efficiency for AI applications.
To meet these demands, hardware such as accelerated computing platforms will play a crucial role. These technologies are designed to process massive data sets and help with advanced AI capabilities, including generative AI and large language models (LLMs). By integrating such solutions, AI-ready data centres are expected to drive innovation across sectors.
Beyond standalone facilities, hyperconnected infrastructure will integrate Indonesia’s digital landscape with global networks, making AI capabilities more accessible to businesses and communities nationwide. As connectivity expands, the goal is to ensure that AI-driven opportunities reach all Indonesians.
How can AI data centre technology providers accelerate digital innovation in the Asia-Pacific region?
As far as BDx is concerned, we have embarked on a project in Indonesia called EdgeNXT. This independent interconnection exchange offers a robust, open, and neutral interconnection ecosystem for its members and participants in the country. It also facilitates the high-speed, cost-effective exchange of peering traffic and enables various service options on diversified networks.
The EdgeNXT Exchange Fabric also aligns with the government’s initiative to develop a secure and reliable digital infrastructure, enhance connectivity with high-quality services, and support Indonesia’s transformation from a nation that primarily consumes technology to one that produces it. Additionally, we collaborate closely with local network providers and the broader industry ecosystem — telcos, ISPs, FNOs, CSPs, OTTs, and CDNs — to help unlock digital potential for nations.
AI data centre technology providers across Asia-Pacific should focus on developing new infrastructure solutions to meet the growing demand for internet, IoT data, cloud services, and other digital technologies. Businesses across industries, including automotive, healthcare, finance, retail, and logistics, are increasingly recognising the benefits of connecting with their digital value chains via an IXP.
Edge computing is gaining popularity as it enables organisations to collect and analyse raw data more efficiently. With the growing need for instant access to data for operational and business decision-making, advanced interconnection solutions can support next-generation traffic aggregation architectures.
How are new developments in AI, GPUs, and other frontier technologies reshaping the data centre and digital infrastructure landscape in the Asia-Pacific region?
New developments in AI, GPUs, and other frontier technologies are driving significant advancements across sectors such as healthcare, finance, transportation, and manufacturing, reshaping industries in profound ways.
Besides the rise of edge computing, AI is increasingly being integrated into data centre management systems to optimise resource allocation, predict maintenance needs, and improve overall efficiency. These innovations help reduce energy consumption, lower operational costs, and improve service delivery.
Environmental concerns are also prompting the need for more sustainable data centres. This includes greater use of renewable energy sources, energy-efficient cooling systems, and water-saving technologies. Data centre providers like us are exploring AI-ready facilities that incorporate these practices alongside advanced cooling and monitoring systems.
What role does Nvidia’s technology play in transforming the digital infrastructure landscape in the region, particularly in relation to data centres?
Nvidia’s technology plays a significant role in transforming the data centre landscape. For example, in a joint venture with Indosat Ooredoo Hutchison (Indosat or IOH) and Lintasarta, our recently launched AI DC Park in Indonesia is equipped with Nvidia GPUs.
Nvidia GPUs are designed for parallel processing, making them well-suited to accelerate AI workloads such as deep learning, machine learning, and natural language processing. This capability significantly reduces the time required for tasks like training AI models, which demand immense computational power. Beyond AI, Nvidia GPUs enhance the performance of simulations, data analysis, and other computationally intensive processes.
Nvidia’s technology is a key enabler of modern data centres, supporting the rapid transformation of Asia’s digital infrastructure and driving the next wave of digital growth.
