Indonesia Data Center Market

Indonesia’s data center industry is experiencing significant growth, fueled by digital transformation, cloud adoption, and strategic investments from global technology firms. The Indonesian data center market is projected to expand from USD 2.39 billion in 2024 to USD 3.79 billion by 2030, reflecting a compound annual growth rate (CAGR) of 7.99%.

Currently, Indonesia hosts approximately 80 colocation data centers, primarily concentrated in Jakarta. The market is witnessing a surge in wholesale colocation demand, driven by the expansion of cloud-based services.  In line with Indonesia’s commitment to achieving net-zero emissions by 2060, the data center industry is increasingly adopting sustainable practices. Innovations such as liquid cooling technologies are being implemented to enhance energy efficiency and reduce environmental impact.

Significant investments are being directed towards IT infrastructure, power systems, cooling solutions, and general construction services to support the anticipated growth. The development of new facilities is not limited to Jakarta but extends to over 18 cities across Indonesia, indicating a nationwide expansion of data center capabilities. Indonesia’s strategic geographic location and robust power supply position it as a prime beneficiary of the increasing demand for data centers in the ASEAN region. Constraints in land and power availability in neighboring countries like Singapore are prompting operators to consider Indonesia as a viable alternative for data center investments. As the digital landscape evolves, Indonesia’s data center market is poised to play a pivotal role in supporting the region’s technological advancement and economic growth.