Digital Edge Increases Majority Ownership in Indonesia’s Indonet by Acquiring Founders’ Stake

Digital Edge Increases Majority Ownership in Indonesia’s Indonet by Acquiring Founders’ Stake

Acquisition in Indonesia

Digital Edge, a Singaporean startup specializing in data centers, has increased its investment in Indonesia’s PT Indointernet by acquiring the remainder of the shares held by the company’s original founders, including Toto Sugiri. This buyout, financed with Digital Edge’s capital and external debt, solidifies the firm’s majority stake in Indonet without disclosing the financial details of the deal.

Expansion and Growth Strategy

Founded in 2020 with the support of Stonepeak, a US private equity firm, Digital Edge’s recent acquisition aims to enhance its services for co-location clients. The company plans to utilize Indonet’s comprehensive network, dark fibre, and cloud service assets. CEO Samuel Lee expressed enthusiasm about Indonesia’s burgeoning digital infrastructure sector, forecasting a double-digit compound annual growth rate of 28% for the data center and cloud domains.

Increasing Market Presence

In 2021, Digital Edge invested $165 million to secure control over Indonet, gaining a large data center in Jakarta known as EDGE1. A subsequent project broke ground in 2022 for EDGE2, another Jakarta data center designed to house 3,430 cabinets and scheduled for completion by year-end 2023. Located in Jalan Kuningan Barat — a hub of connectivity — this additional investment marks a strategic move to strengthen Digital Edge’s market position and amplify the fibre and connectivity services accessible to their clients.

Founder’s Endorsement and Succession

Toto Sugiri, the founding member of Indonet, has praised the partnership with Samuel Lee and Digital Edge’s leadership, confident in their vision for Indonesian digital transformation. Sugiri expects the Digital Edge team to continue the company’s progression and to maximize opportunities within Indonesia’s digital infrastructure landscape.

Digital Edge’s Southeast Asian and Global Ventures

EDGE2 represents Digital Edge’s third endeavor in Southeast Asia, following a $100 million venture in Manila and several projects in the Philippines and India. The company has also initiated construction on its seventh data center in Tokyo, Japan, with a strategic move towards developing a network of hyperscale data centers. With over $1 billion in capital and operations spanning several Asia-Pacific countries, Digital Edge, backed by Stonepeak, is poised as a significant player in the region’s data center industry
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