When evaluating infrastructure options for growing digital operations, many companies find themselves deciding between two main paths: colocation servers or dedicated servers. While both offer high performance and reliability compared to shared hosting or cloud instances, the long-term value they deliver can differ significantly depending on your organization’s needs, scale, and IT capabilities.
In this article, we’ll break down the key differences between colocation and dedicated servers through the lens of long-term value—factoring in cost of ownership, flexibility, scalability, performance, and operational control.
A colocation server refers to the physical hardware that you own, which is housed in a third-party data center. The data center provides the space, power, cooling, physical security, and network access, but you retain full ownership and control of the server hardware.
You’re responsible for:
A dedicated server is leased from a hosting provider. The server is physically isolated (not shared), but you don’t own the hardware—it’s managed or at least hosted by the provider. You typically pay a monthly or annual fee that includes hardware use, maintenance, and sometimes basic support.
The hosting provider is typically responsible for:
Long-Term Value Winner: Colocation, if you plan to run the same hardware for 3–5 years.
Winner: Colocation, especially for companies with unique performance or compliance needs.
Short-Term Winner: Dedicated, Long-Term Winner: Colocation, if you standardize deployments and plan ahead.
Winner: Colocation, for mission-critical or performance-sensitive applications.
Winner: Colocation, especially when custom security and compliance are non-negotiable.
Winner: Dedicated, for teams with limited IT resources.
| Factor | Colocation | Dedicated Server |
|---|---|---|
| Upfront Cost | Higher | Lower |
| Monthly Cost | Lower (over time) | Higher |
| Hardware Control | Full | Limited |
| Performance Potential | High (customizable) | Variable |
| Compliance & Security | Strong (customized) | Provider-dependent |
| Maintenance Burden | High | Low |
| Scaling Convenience | Lower (initially) | High |
Long-Term Value Winner: Colocation. If your business has the technical capability to manage infrastructure and is focused on cost-efficiency over a multi-year horizon.
But if you need quick deployment, minimal hardware responsibilities, and predictable costs, dedicated servers still offer great value for many use cases.
Whether you’re leaning toward colocation or dedicated servers, the right choice depends on your organization’s IT maturity, growth trajectory, and compliance requirements. If you’re planning to run stable workloads for years and want maximum control, colocation gives you the edge in long-term value.
Need help evaluating your infrastructure options? Get in touch with EDGE DC for a tailored consultation.
Downtime in data centers can have a significant impact on business operations—from lost productivity and revenue to damaged company reputation. For data center service users, understanding how to handle downtime effectively is crucial to keep business running and minimize disruptions.
This article will discuss steps you can take when a data center experiences downtime, as well as how to prepare your systems and team to be more resilient in the future.
The first step is understanding the type of downtime that occurred:
Knowing the main cause of downtime will help you determine the appropriate response.
Read more: Driving the Future: Integrating Renewable Energy into Data Centers
Facing downtime can be a stressful situation, especially if it directly impacts services used by your customers. Therefore, it’s important to stay calm and take strategic steps that have been planned in advance. One of the main references in such conditions is the SLA document agreed upon with the service provider.
Every data center service typically has a Service Level Agreement (SLA) that guarantees a certain level of uptime (for example 99.999%). Make sure you understand the contents of the SLA:
If a disruption occurs, immediately contact the service provider through the official communication channels specified in the SLA.
Once you detect downtime, immediately do the following:
If you use colocation services or have your own servers in the data center, make sure you have prepared the following before downtime occurs:
When downtime occurs, these systems can keep services available to your customers.
Create and document internal Standard Operating Procedures (SOPs) that include:
Your internal team should understand these SOPs and conduct regular incident handling simulations.
If you are a company that provides server-based services in a data center, it’s important to maintain customer trust:
After the downtime is resolved, conduct a thorough evaluation:
Use the evaluation results to improve systems and prevent similar incidents.
Read more: Digital Transformation Strategy: Optimizing Cloud Computing or Data Center?
Besides internal readiness, choosing a reliable data center provider also plays a major role in minimizing downtime. For example, EDGE DC, a data center located in Jakarta, offers global standard infrastructure with low latency—ideal for companies that require high performance and fast access.
With direct connectivity to various local and international networks, services like EDGE DC help ensure your applications and systems remain responsive even during high traffic.
Read more: What is a Data Center: Definition, Types, and Benefits
Handling data center downtime is not just about rapid recovery, but also system readiness, communication transparency, and continuous evaluation. With a mature approach and good cooperation between internal teams and data center providers, the impact of downtime can be significantly minimized.
Find reliable and efficient infrastructure solutions for your colocation and connectivity needs. Learn more about EDGE DC, a global standard data center service in Jakarta.
Data is the lifeblood of almost every organization. From customer information and financial records to operational procedures and intellectual property, uninterrupted access to data and IT systems is paramount. But what happens when the unexpected strikes? A power outage, a cyberattack, a natural disaster – any of these events can bring operations to a halt, potentially causing significant financial and reputational damage. This is where a robust Disaster Recovery Plan becomes indispensable.
So, what is a ws (DRP) exactly?
At its core, a Disaster Recovery Plan is a documented, structured approach outlining how an organization can quickly resume work after an unplanned incident or disaster. It’s a critical subset of a broader Business Continuity Plan (BCP). While BCP focuses on keeping all essential business functions running during a crisis, a DRP specifically targets the recovery of the IT infrastructure and data that support those functions.
Think of it as a detailed instruction manual for your IT team and key stakeholders, specifying:
While data centers like EDGE DC provide highly resilient and secure environments, a DRP remains crucial for the businesses housed within them. Here’s why
A comprehensive DRP typically includes:
Choosing a reliable data center partner like EDGE DC in Jakarta provides a foundational layer for your DRP. Secure facilities with redundant power, cooling, network connectivity, and physical security measures significantly reduce the risk of infrastructure-related failures impacting your primary operations. Furthermore, the geographic location and robust infrastructure of a purpose-built data center can serve as an ideal environment for housing your primary or secondary recovery systems, ensuring they are protected and available when needed.
Understanding what a Disaster Recovery Plan is and implementing one isn’t just an IT task; it’s a fundamental business strategy. It’s about anticipating potential disruptions and having a clear, actionable plan to navigate them effectively. By proactively developing, testing, and maintaining a DRP, businesses can safeguard their valuable data, minimize operational downtime, maintain stakeholder trust, and ensure long-term resilience in an unpredictable world.
Partnering with a secure and reliable data center like EDGE DC provides the robust physical and network infrastructure essential for building an effective disaster recovery strategy. Contact us today!
Speed, security, and data availability have become the key to business success. For this reason, the use of data centers is essential for companies aiming to undergo digital transformation. This article will thoroughly explore the benefits of data centers in supporting business operations and digital services.
A data center is a facility used to house computer systems and related components such as servers, data storage, and networking equipment. It serves as the core for storing, processing, and distributing data essential to modern enterprises. Core components typically include compute (servers), storage (disk arrays, tape), and networking (switches, routers, firewalls) infrastructure, supported by power systems, cooling systems, and robust physical and network security measures.
Read more: Data Center Jakarta: Why Location and Latency Matter for Your Business
One of the main benefits of data centers is their ability to safeguard corporate data. With features such as network segmentation, firewalls, intrusion detection systems, encryption, and physical security systems (including controlled access, surveillance, and biometric authentication), data centers help prevent data breaches and cyberattacks. These multi-layered security approaches are crucial for protecting sensitive information.
Downtime is the number one enemy in the digital world. With infrastructure designed for high availability, often involving redundancy across power, cooling, and network systems, data centers ensure digital services remain operational. Features like backup power sources (UPS and generators) and automated failover mechanisms minimize disruptions, even during power outages or component failures.
Modern data centers allow businesses to adjust their capacity based on demand. As traffic increases or business needs change, resources like server capacity, storage, and network bandwidth can be scaled up or down without the need to build entirely new infrastructure, often leveraging virtualization or cloud services.
Instead of managing costly and complex infrastructure in-house, businesses can leverage colocation or cloud services from data centers. This reduces capital expenditure (CapEx) on building facilities and operational expenditure (OpEx) related to power, cooling, staffing, and maintenance, often lessening the burden on internal IT teams.
In the digital transformation era, speed in developing and deploying applications is crucial. Data centers provide an ecosystem that supports automation, rapid deployment, and integration with various cloud services, acting as a bedrock for initiatives leveraging technologies like AI, IoT, and big data analytics.
Data centers with high connectivity and low latency ensure that digital applications run smoothly for both internal users and external customers. Minimizing network delay is critical for application responsiveness, particularly for real-time services and transaction-heavy platforms.
Data centers are equipped with robust backup and recovery systems. Strategies often include regular data backups, data replication (potentially to geographically diverse locations), and clear recovery procedures (Disaster Recovery Plans), allowing digital services to quickly recover in the event of damage, system failure, or data loss.
Industries such as finance and healthcare must adhere to strict data regulations. Data centers help businesses comply with these regulations by offering facilities that meet national and international standards, such as SOC 2, HIPAA (for healthcare), and PCI DSS (for payment card data). Many data centers undergo regular independent audits to verify their compliance with these stringent requirements.
Read more: How to Protect Your Assets: A Complete Data Center Security Guide in 2025
Overall, the benefits of data centers are substantial in supporting business continuity and growth, especially in the ever-evolving digital landscape. Investing in data center services is not just a matter of technology—it’s a strategic business decision for a more resilient, efficient, and competitive future.
Looking for a low latency data center for your business? Contact us today to explore EDGE DC solutions.
Indonesia, as one of the largest economies in Southeast Asia, has witnessed rapid digital transformation across various sectors in recent years. With a population of over 270 million, the demand for reliable IT infrastructure has skyrocketed across industries, including retail, e-commerce, local cloud services, and IT solutions. This case study explores how data center services can significantly enhance business operations in the Indonesian market while addressing the unique challenges and opportunities faced by enterprises in this booming economy.
As enterprises strive to provide customer-centric services, understanding consumer behavior and preferences is crucial. By including customer aspects in the development process, customer-centricity thinking can extend to every aspect of the business, from processes and strategy to culture, size, and even structure.
The increasing penetration of the internet and mobile devices has led to the rise of diverse technologies, allowing businesses to collect and analyze vast amounts of data. However, to leverage these insights effectively, companies must invest in dependable IT infrastructure that supports scalability and security.
With the growth of urbanization and rising disposable incomes, the Indonesian retail sector is expanding rapidly. Major retail players need to manage seasonal spikes, particularly during festive sales periods such as Ramadan and Christmas.
Example: An Indonesian retail chain gearing up for a promotional sales event can utilize a local data center to ensure their e-commerce platform remains operational and responsive during high-traffic periods. By doing so, they can provide real-time inventory updates, seamless checkouts, and personalized marketing, ensuring a positive customer experience that drives sales. The scalability offered by data center services ensures they can handle fluctuations in customer demand without incurring unnecessary costs.
Indonesia is one of the fastest-growing e-commerce markets globally, fueled by a young population and improving logistics. However, the digital retail landscape demands reliability and security.
Example: A budding Indonesian e-commerce startup could benefit from robust data center services to host its platform. These services not only ensure 24/7 uptime but also protect sensitive customer data through advanced security measures. By establishing trust in their operations, such e-commerce firms can attract more consumers, ultimately enhancing their market share in a competitive landscape.
The demand for cloud-based solutions is increasing in Indonesia, particularly among SMEs looking to digitalize their operations. A dependable data center can empower local cloud service providers to offer innovative solutions.
Example: A local cloud service provider can rely on a data center to deliver essential services such as data storage and backup solutions. By utilizing a data center with redundancy and data locality—complying with local regulations regarding data sovereignty—the provider can ensure minimal downtime and quick data recovery for its business clients. This reliability not only attracts more customers but fosters long-term partnerships built on trust.
Read more: Global Edge Cloud Provider – Kaopu Cloud Announces Strategic Collaboration with EDGE DC in Indonesia
Many Indonesian IT solutions companies handle geographically diverse projects requiring significant infrastructure without hefty capital investments.
Example: An IT consulting firm that manages various projects for clients can utilize data center services to create a scalable environment. For instance, when a client requests an urgent deployment of new software, the firm can adjust its resources instantaneously without the need for substantial hardware investments. This agile approach enables the firm to meet client expectations while reducing overhead costs, ultimately improving service delivery across multiple industries.
Read more: EDGE2, 23 MW Data Center facility in the Heart of Jakarta, is Ready for Service
The Indonesian market presents significant opportunities for enterprises leveraging reliable data center services. By addressing the unique challenges posed by a rapidly digitizing economy, data centers empower businesses across retail, e-commerce, local cloud services, and IT solutions to streamline operations and enhance customer-centricity. As companies increasingly turn to outsourced data center services, they can access the robust infrastructure needed to support their growth while ensuring security and compliance with local regulations.
Enterprises in Indonesia seeking a reliable data center partner can turn to EDGE DC. With a deep understanding of the Indonesian market and a commitment to customer-centricity, EDGE DC can provide the robust infrastructure, security, and compliance needed to support business growth and success in the digital age.
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Data center components are crucial in determining the best facility for businesses. A data center is a specialized facility designed to house hardware such as servers, storage systems, and networking equipment that form the backbone of digital business operations.
As detailed in our definitive guide to what a data center is, this technological infrastructure serves as the home for computing and data storage hardware. To ensure security, efficiency, and business continuity, understanding the right data center components is key. In Indonesia, the rapid growth of data centers reflects the increasing demand for digital services, making the selection of the right provider a significant challenge.
Read more: Driving the Future: Integrating Renewable Energy into Data Centers
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Every data center component must be implemented according to the highest standards to ensure efficiency, security, and operational continuity in your business. In the digital world, a data center is a facility that demands special attention to each component, from building structure to power redundancy, ensuring that your service requirements are consistently met.
For a reliable data center solution in Indonesia, contact EDGE DC and discover the best services for your business’s digital infrastructure.
Choosing the right data center is a pivotal decision for businesses that depend on uptime, security, and scalability. With various classifications available, understanding which tier aligns with your needs can significantly influence your operations. Among these, the Tier 3 Data Center stands out as a popular choice, offering a compelling balance of performance, cost, and reliability. But is it the ideal fit for your organization?
This article delves into what defines a Tier 3 Data Center, its benefits, limitations, and whether it meets your business requirements. We’ll also explore the rising demand for data center solutions in Indonesia, spotlighting facilities like EDGE2 in Jakarta.
Data centers are classified into four tiers based on redundancy, uptime, and fault tolerance:
A Tier 3 Data Center appeals to businesses seeking high availability without the premium costs of a Tier 4 facility, making it a widely adopted standard globally.
Read more: The Role of Edge Data Center in the Era of AI Technology
A Tier 3 Data Center is engineered for resilience, supporting uninterrupted operations even during maintenance. Its key features include:
These attributes position Tier 3 Data Centers as a go-to option for businesses needing reliability without the expense of higher-tier facilities.
With a 99.982% uptime guarantee, Tier 3 Data Centers manage power or cooling failures with minimal disruption. In Indonesia, these facilities hold a significant market share, with 47% of the market in 2024 and 22 operational centers—18 in Greater Jakarta—highlighting their importance in delivering dependable services.
While Tier 4 offers superior reliability, its costs are notably higher. Tier 3 strikes a practical balance, as seen in Jakarta’s EDGE2 facility, which achieves a Power Usage Effectiveness (PUE) of 1.24, lowering operational expenses through energy efficiency while upholding Tier 3 standards.
Tier 3 Data Centers accommodate increasing workloads, making them ideal for cloud providers, enterprises, and financial institutions planning for growth.
These facilities often meet ISO 27001, SOC 2 Type II, and other international standards, ensuring robust data protection and regulatory adherence.
Read more: 5 EDGE DC Services for Data Centers in Indonesia
Unlike Tier 4’s 2N+1 redundancy with dual-powered systems, Tier 3’s N+1 setup may struggle under rare, extreme conditions.
Though less expensive than Tier 4, Tier 3 exceeds the cost of Tier 1 and Tier 2, potentially challenging for smaller businesses.
Organizations needing zero downtime, such as those in telecommunications, healthcare, cloud computing, and critical infrastructure, might opt for Tier 4 data centers instead. These industries require ultra-high availability and fault tolerance to ensure uninterrupted operations, especially in mission-critical environments.
Whether a Tier 3 Data Center fits depends on your needs. It’s optimal for:
However, businesses needing full fault tolerance may lean toward Tier 4. With Indonesia’s data center capacity expected to grow from 971.90 MW in 2025 to 2.11 thousand MW by 2030 at a CAGR of 16.73%, Tier 3 facilities are well-positioned to support this surge, especially for scalability-focused enterprises.
Indonesia’s digital economy is booming, fueling demand for reliable data center solutions. As Southeast Asia’s largest data center market, Indonesia sees Jakarta’s colocation market nearing USD 938 million by 2027, with Tier 3 facilities like EDGE2 leading the charge.
Launched in early 2024, EDGE2 offers 23 MW of IT load and over 3,400 racks, making it Jakarta’s largest operating data center. Located under 3 km from EDGE1, it connects to over 60 network carriers and key Internet Exchanges like IIX (Indonesia Internet Exchange) and EPIX (Edge Peering Internet Exchange), ensuring low-latency performance. EDGE2 also emphasizes sustainability, leveraging renewable energy and targeting LEED Gold Certification.
With regulations pushing data localization, Indonesian businesses increasingly turn to local Tier 3 Data Centers for compliance and sovereignty.
A Tier 3 Data Center offers a strong mix of high availability, scalability, and cost-efficiency. While it falls short of Tier 4’s full fault tolerance, it delivers substantial reliability at a lower cost
As demand for data center solutions in Indonesia grows, businesses should evaluate their uptime requirements, budget, and future expansion plans to determine if Tier 3 is the right fit. With more providers expanding infrastructure, companies have a range of reliable and scalable options. Selecting the right tier today helps ensure long-term operational stability.
Ready to power your business with cutting-edge reliability? Discover how EDGE DC’s Tier 3 solutions, like EDGE2 in downtown Jakarta, can elevate your uptime and scalability. Contact EDGE DC today to secure your infrastructure for tomorrow!
Colocation Services are experiencing a significant surge in data infrastructure demand. The data center market in Asia Pacific is estimated to grow by 12% annually until 2025, with Indonesia playing a major role. Colocation services (renting server space in third-party data centers) have become a popular solution for businesses focusing on scalability without having to build their own facilities.
However, the success of Jakarta colocation depends on strong connectivity, especially through technologies like fiber optic. This article explores how connectivity, including solutions offered by fiber optic providers, optimizes Jakarta colocation services.
Colocation allows businesses to place servers in external data centers that provide power, cooling, and security, saving infrastructure development costs. Jakarta stands out as an ideal location for colocation services due to its position as the nation’s capital with over 10 million residents and as Indonesia’s largest business center.
The growth of the technology ecosystem in the city also increases the need for efficient data centers. However, challenges such as network latency, uptime stability, and bandwidth capacity require capable connectivity solutions for colocation to be truly beneficial.
Read more: The Future of Data Center Indonesia: Infrastructure and Investment on the Rise
Connectivity is essential to colocation services, especially in Jakarta. Fast and stable networks ensure servers efficiently serve users. Here are the key roles of connectivity that need to be known.
In Jakarta, optimal connectivity is a necessity to support rapid digital transformation. Fiber optic technology, for example, has become the gold standard due to its large capacity and high reliability.
Fiber optics, such as those used by internet service providers in Indonesia, offer significant advantages for Jakarta colocation. This technology transmits data through light, providing much higher speeds compared to conventional copper cables.
For example, fiber optic networks support Metro-Ethernet infrastructure that connects hundreds of buildings in major cities, including Jakarta, with automatic error recovery within 50 milliseconds in case of disruptions. This indicates low latency and high uptime, two key elements for colocation.
Additionally, fiber optic allows direct connections to internet exchange centers such as Indonesia Internet Exchange (IIX), which are accessed by many data centers in Jakarta. This accelerates access to cloud services and global content. Providers like CBN also have submarine cables from Jakarta to Singapore to expand international reach for businesses using colocation in both cities.
Read more: Powering Generative AI: The Data Center Energy Challenge and Sustainable Solutions
Fiber optic-based connectivity brings direct benefits to Jakarta colocation users.
From the benefits above, businesses gain cost efficiency advantages because fiber optic allows for large capacity provision without frequent physical infrastructure upgrades. In the future, this technology supports data-intensive needs such as AI and analytics, making Jakarta colocation more ready to face digital trends.
Connectiviy is a determining factor in optimizing Jakarta colocation services. Fiber optic technology, such as that implemented by providers like CBN, enhances the speed, reliability, and scalability needed by businesses in the capital. By utilizing fiber optic networks, colocation in Jakarta not only meets current needs but also opens opportunities for digital growth in the future.
Explore EDGE DC Jakarta colocation services designed for efficiency and sustainability. Contact us today to learn more!
The future of data center Indonesia is at the forefront of a major digital transformation, with the demand for data center Indonesia rising as businesses, governments, and multinational corporations increasingly rely on digital services. This strategic sector is supported by robust infrastructure developments and significant investments from both local and international players, setting the stage for a dynamic future.
In recent years, Indonesia has experienced remarkable growth in data center infrastructure. In the first half of 2024, the country’s data center capacity reached 202 MW, and projections indicate that artificial intelligence (AI)-ready data center capacity will soar to 743 MW in the near future. Moreover, the development of hyperscale facilities across strategic locations is not only enhancing storage and processing capabilities but is also emphasizing energy efficiency and environmental sustainability..
The surge in demand for data center Indonesia has attracted substantial investments. The market value is estimated to reach US$3.7 billion (approximately Rp57.7 trillion) in 2024. Major players are stepping in: for example, Tencent Cloud is planning its third data center in Indonesia with an investment of up to Rp8.11 trillion. The government is also supporting the sector by promoting data center development in areas like Batam, which is attracting investments up to US$3 billion.
The expanding infrastructure and investments in data center Indonesia open up tremendous opportunities. The integration of advanced technologies such as AI and cloud computing is transforming these centers into hubs for innovation and efficiency. This shift is enabling not only improved e-government services and fintech solutions but also strengthening cybersecurity measures. Read more about the role of AI in this transformation here.
Despite the promising outlook, several challenges remain. Ensuring data security and compliance with regulatory standards is crucial to protect sensitive information. Equally important is the need for a stable and reliable electricity supply, as data centers require continuous power to operate efficiently. The readiness of supporting infrastructure, including robust communication networks, is also a significant factor that needs to be addressed. More details on these challenges can be found here.
The rapid growth of data center Indonesia is not only driving technological innovation but also contributing significantly to the national economy. The expansion of data centers creates job opportunities, boosts local talent development, and promotes more balanced regional development. Furthermore, this infrastructure supports a wide range of sectors—from e-commerce to digital finance—thereby reinforcing the overall economic resilience and growth of Indonesia.
EDGE DC stands out as a leading local provider in the data center Indonesia landscape, driving the nation’s digital transformation with innovative infrastructure and services. Key highlights include:
Through these efforts, EDGE DC empowers both private and public sectors, solidifying its role as a key enabler of Indonesia’s rapidly evolving digital ecosystem.
Read more: Essential Considerations Before Peering with Our Internet Exchange
The future of data center Indonesia is bright, driven by a combination of robust infrastructure development, significant international and domestic investments, and a strong government push for digital transformation. Although challenges such as data security and power reliability remain, the collaborative efforts of industry players and policymakers are set to overcome these hurdles. With companies like EDGE DC leading the way—through innovative infrastructure, strategic connectivity, and a commitment to sustainability—Indonesia is poised to become a key player in the global data center market, fostering economic growth and digital innovation for years to come.
Reay to dive deeper? Explore the linked sources or connect with industry leaders like EDGE DC to stay ahead in Indonesia’s digital revolution!
