Prospects for Indonesian Data Centre Stocks: Who Can Ride DCII to the Skies?
Jakarta, CNBC Indonesia - Indonesia’s massive digital transformation is sparking a surge in demand for large-scale technology infrastructure, placing the data centre sector as one of the industries with the most promising fundamental growth prospects in the capital markets.
Alongside the increasing penetration of cloud computing and early adoption of AI by corporations, the need for data storage space with high levels of security and power availability has become crucial.
On the Indonesia Stock Exchange, the dynamics of this industry are reflected in the movements of digital infrastructure providers, where PT DCI Indonesia Tbk (DCII) and PT Indointernet Tbk (EDGE) are the two most relevant entities for analysis.
Currently, the market shows a stark valuation disparity between the two issuers. DCII shares are traded at Rp199,275 per share, representing a premium valuation, while EDGE shares are recorded at Rp4,790 with a suspension status by the exchange authority.
Relevance of Capacity and Asset Metrics in Valuation
Assessing the financial performance and valuation of issuers in capital-intensive infrastructure sectors like data centres requires a different analytical approach compared to conventional sectors.
The use of traditional valuation metrics based on net profit often fails to provide an accurate picture. This is due to the significant depreciation and amortisation burdens that pressure net profit figures, resulting from ongoing capex cycles for building new facilities.
Therefore, a more objective and representative approach is valuation based on the size of physical assets and operational power capacity in megawatts (MW).
This approach provides a comprehensive basis for comparison between DCII, which operates purely as a data centre provider (pure-play), and EDGE, which runs an integrated business model of data centres and connectivity networks.
The following is a compilation of fundamental data and market valuations for both issuers based on estimated book performance for 2025:
Reference for Data Centre Construction Costs per MW Metric
As a reference, research data from BlueCap Economic Advisors indicates that construction cost estimates range from Rp11.97 trillion to Rp20.52 trillion, based on an exchange rate assumption of Rp17,100 per USD.
Technically, the largest allocation of funds will be absorbed by electrical systems and redundancy, which can reach 45% of the total budget to ensure uninterrupted operations. In Indonesia, this figure is highly reasonable and relevant for implementation, especially for hyperscale data centres now being developed in areas such as Cikarang, Karawang, and Batam.
However, its realisation in the domestic market requires mitigation of risks related to electricity stability and the availability of green energy infrastructure, given that annual operating costs are also substantial, potentially reaching Rp427.5 billion.
Despite requiring massive CapEx, projects of this scale remain competitive in Indonesia due to rapid digital economic growth and tax incentives in Special Economic Zones (KEK) that can help optimise long-term Return on Investment (ROI).
The following is data on data centre construction costs per MW based on that research:
Maturity of Operational Scale and DCII’s Premium Valuation
Based on a review of the latest operational data, DCII has a total installed capacity of 128 MW supported by total assets worth Rp6.64 trillion.
The proportion between asset value and capacity size indicates that the company has passed the initial capital investment phase with the highest burden intensity.
Currently, DCII has achieved optimal economies of scale. The construction of basic infrastructure such as electrical substations, precision cooling systems, redundant power backups, and high-certification facility structures has been comprehensively realised in previous expansion phases.
With this condition, every future initiative to add new capacity or expand operational buildings can be executed with far more measured capital allocation efficiency.
This established operational structure also aligns with the company’s client profile, dominated by global technology firms and large-scale cloud computing service providers, which in turn ensures that facility utilisation rates remain at maximum percentages.
This operational maturity correlates directly with the formation of valuation on the stock exchange, where the market assigns a capitalisation value of around Rp3.7 trillion for every 1 megawatt of DCII’s operational capacity.
With a market capitalisation to assets ratio of 71.5x, this valuation level represents a rational calculation by market participants of the high certainty of future cash flows, operational margin stability, the company’s market share dominance, and the resilience of a business model that generates recurring revenue in the long term.
Expansion Phase of the Ecosystem and EDGE’s Valuation Profile
In contrast to the maturity structure recorded by DCII, EDGE’s books report total assets of Rp5.45 trillion with an operational data centre capacity of 29 MW, specifically from the EDGE1 and EDGE2 facilities.
The ratio of operational capacity to total asset value reflects a business entity profile currently at the peak of the capital expenditure absorption cycle for expansion purposes.
It should be noted that EDGE’s total assets do not exclusively consist of fully operational data centre buildings. The company’s assets also include supporting fibre optic network infrastructure for connectivity as well as various physical facilities still in the construction completion stage.
This confirms that the