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Tencent will plans to open a data center in Indonesia by the end of this year
Chinese internet conglomerate Tencent Holdings is upping its stakes in competition against global competitors for Asia's burgeoning cloud services market, with plans to open a data center in Indonesia by the end of this year.

The IDC will allow Tencent Cloud, a subsidiary of Tencent Holdings Ltd, one of China’s biggest technology firms, to be closer to Indonesian users, enabling faster data transfers and accelerating various industries’ digital transformations.

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“Indonesia has a large internet demographic dividend with a fast-growing mobile internet market. We are very pleased to launch our first IDC here to help maximiSe the cloud computing potential in this country, ” said Tencent Cloud International senior vice president Poshu Yeung.

The data centre will lower latency for end customers in Indonesia and provide more disaster recovery options for organisations across the APAC region, the provider added. It will support the growing needs of a wide range of industries, from financial services, internet access and e-commerce to entertainment, gaming and education.

The new data centre, located in Jakarta’s central business district, will support a wide range of industries including financial services, ecommerce, entertainment, gaming and education. Local cloud infrastructure bases help reduce delays in data processing, enabling companies to launch more competitive services compared with those using overseas cloud facilities.

Among Asian countries, Indonesia is one of the hottest battlegrounds for cloud services. Google, Microsoft, Amazon and Facebook have announced plans to build their first data center in the country, the world's fourth most populous data center with a population of 270 million people. Alibaba has opened two data centers in Indonesia and plans to add a third.

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Indonesia is one of Asia Pacific's fastest growing cloud computing markets, with a projected 25 per cent compound annual growth rate (CAGR) from US$200 million in 2018 to a projected $800 million in 2023, according to a Boston Consulting Group report.

Tencent adds to a list of tech behemoths, such as Alibaba, Microsoft and Amazon, whose cloud computing arms are racing to capture a piece of Southeast Asia’s largest digital economy.

Tencent has provided technological support for livestreaming events of Singapore ecommerce platform Shopee. The daily viewing time of Shopee’s live site increased more than 15-fold over the past year.

By building its own data centres, Tencent also is looking to accelerate the overseas expansion of other services in the group, including music app Joox and video-streaming platform WeTV, in emerging Asian markets.

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