The colocation center cost continues to rise in Europe, a significant threat to many businesses. It has raised concerns for many businesses in Europe.

As Europe Colocation Center Rise, Many Businesses Look to Relocation.

Cloud computing will grow rapidly over the next few years as more companies move towards this new technology. Data centers need to be built to support this growth, but with the rising costs of these construction projects, many companies are considering other options.

However, data center construction costs continue to climb. The colocation centers in London and Amsterdam have raised their prices, and this trend is expected to continue in other locations across Europe. Many large industries like banking and insurance companies are moving their data centers away from London because of expensive costs. Large companies are looking for better deals to save money on colocation services.

Does Russia want to end the war with Ukraine as soon as possible?

The surge in electricity prices in Europe occurred because of the war between Russia and Ukraine. The war had cut off Russian gas supplies to Europe. Also, previously, the Russian side had stopped the gas supply because Ukraine was using gas without Russia’s knowledge, and in the end, this became a dispute.

The political situation heated up when NATO provoked Russia by being present around Ukraine and inviting Ukraine to become a member of NATO. Feeling threatened, Russia invaded Ukraine to overcome the situation.

At the end of 2022, Vladimir Putin said he wanted to end the war as soon as possible through negotiations. However, this has been done several times during the war, which in the end, has continued the war.

Then another Russian pipeline to Europe was also sabotaged by an undetected party. This worsened the European economic situation.

In England, more and more women are turning into prostitutes. In Germany, many SME companies are selling their places of business, and in almost all of Europe, many people eat less to pay for electricity.

So, the issue of energy supply to Europe remains to be seen in 2023, although several initiatives have been taken. Like Italy, which is working with Tunisia to supply electricity from renewable energy.

For European enterprises, the quickest solution is to relocate their data centers to countries where electricity costs are still normal and they can rely on them, such as data centers in Southeast Asia.

Data Center Relocation Options

Many European businesses have relocated their data center to Southeast Asia to overcome this situation. Southeast Asia has a fairly high development of digital technology. The availability of data centers and cloud professionals have made Southeast Asia the foremost destination for data center placement for many businesses around the world.

In Southeast Asia, there are three countries for data center relocation for European enterprises: Indonesia, Malaysia, and Singapore. Each of these countries has its advantages and disadvantages.


Malaysia has a stable political situation. Several large data centers are also operating in Malaysia. However, the number of data centers in Malaysia is few, so you will encounter limitations in choosing a data center in Malaysia.


Singapore has become the world’s largest digital technology hub. This small country has more data centers than its neighboring countries. However, space to add data centers in Singapore is increasingly more work.

In addition, Singapore does not have energy sources. They rely on energy from Indonesia and Malaysia. Even though the Singapore government is currently building a nuclear power plant, the problem lies in the availability of nuclear power plants.

The Singapore government and several businesses are currently building a large solar power plant. However, apart from needing up to a dozen years in the future, I wonder if this electricity supply will be able to meet their electricity needs.

As a solution, many data center entrepreneurs in Singapore have set up their data centers in Indonesia, especially in Jakarta – Indonesia’s capital city- and on the island of Batam. This is because of the cooperation between countries that have been held so far. Indonesia – Singapore fiber optic connection is also available.

Read also: Singapore Temporary “Halted” in Building New Data Center


What is interesting about Indonesia is the rapid progress of digital technology and ICT infrastructure over the past ten years. Data center companies such as Equinix, Digital Realty, Space DC, Google, Azure, and AWS have also been operating in Indonesia.

The cost of electricity in Indonesia is still relatively cheap compared to the cost of electricity in Europe. European enterprises can reduce costs significantly by relocating their data center to Indonesia.

Colocation center costs in Indonesia are the cheapest in Southeast Asia. Datacenter quality in Indonesia already has world-class standards, such as ISO 27001, PCI DSS, and Tier III and IV Uptime Institute; data centers in Indonesia have achieved much.

Indonesia has 230 million internet users. As well as being a colocation center cost solution that has skyrocketed in Europe, business people can also explore a sizeable market in Indonesia.

Indonesia has a significant advantage in becoming a data center location for many international companies because Indonesia has great weather conditions, a stable political situation, and abundant energy resources. With new projects built by leading providers, Indonesia will see positive growth shortly with high-end technology and low-cost infrastructure.


Colocation centers have become an essential part of the technology industry. As more and more people move their data to the cloud, the amount of space needed for this data is constantly growing. A colocation center allows companies to house their equipment and keep everything secure. As a result, the colocation industry has seen growth in recent years.

However, the cost of running a colocation center has grown faster than demand, especially in Europe, which experienced the highest gas price increases in history. Many European business people have relocated their data centers to other continents, such as Southeast Asia.

To reduce colocation center costs, there are three data center location options in Southeast Asia: Indonesia, Malaysia, and Singapore. Several data center investors continue to build data centers that are more environmentally friendly in Indonesia to meet the need for colocation centers.

Cooperation between Europe and Southeast Asia in overcoming this situation is urgently needed. Therefore, immediately relocate your data center to Southeast Asia.

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