Telkom Indonesia lines up sale of data centre arm stake

Telkom Indonesia is preparing to sell a majority stake in its data centre subsidiary NeutraDC, aiming to raise up to $1.5 billion, according to Bloomberg. The company has hired financial advisers and is in early talks, but has not disclosed the exact stake size or a timeline. The move fits Telkom’s plan to cash in high-value infrastructure, including data centres and towers, to fund capital spending.

NeutraDC runs 34 data centres in Indonesia and Singapore and is adding two hyperscale facilities to an existing site in Jakarta, including a Batam build with Singtel’s Nxera unit. The sale process comes as global demand for AI-related computing power drives data centre expansion and deal activity, highlighted by KKR and Singtel’s recent $5.2 billion takeover of ST Telemedia Global Data Centres. Telkom has already spun off its wholesale fibre business to Telkom Infrastruktur Indonesia in a 2025 deal valued at IDR35.8 trillion ($2.1 billion), while its mobile arm Telkomsel remains Indonesia’s largest operator with 158.5 million connections.