Indonesia data center market size will witness investments of USD 3.07 billion by 2028, growing at a CAGR of 6.27% during the forecast period. The market has the presence of cloud service providers such as Alibaba, Microsoft, Amazon Web Services (AWS), Tencent cloud, Google Cloud, and Huawei Cloud that have existing or upcoming cloud regions in the country. These operators also have their on-ramp presence in local colocation facilities. In November 2022, Telkom Indonesia partnered with Google Cloud to digitalize its telecom solutions and support digitalization among high-priority sectors under the country’s Digital 2024 roadmap.

The Indonesia data center market has been growing significantly over the past few years due to several driving factors such as the demission of demand from the major markets like Singapore due to the data center moratorium, growth in digitalization, increasing submarine cable deployments, cloud adoption, and implementation of advanced technologies. Regarding 5G connectivity, telecom operators such as Telkom Indonesia and Indosat Ooredoo are deploying 5G network services across the country. For instance, in November 2022, Indosat Ooredoo Hutchinson (IOH) partnered with IBM to develop 5G solutions in the country.

The government launched Personal Data Protection (PDP) Law in 2019; according to the law, data transfer outside of the country has to fulfill stringent regulations set by the government for data transfer and also protect and process the sensitive data of the country. Moreover, the government has developed several industrial parks in the country, such as MM2100, GIIC, Jababeka, Kabil Integrated Industrial Estate (KIIE), and Suryacipta, which support industrial development. For instance, Minoro Energi Indonesia’s facility DC-1 is developed in Jababeka Industrial Estate, the country's largest industrial estate.

KEY HIGHLIGHTS

• The government of Indonesia is taking several initiatives for the country's digital transformation. According to the Ministry of Communication and Informatics, the digital transformation strategy of Indonesia focuses on around ten sectors, such as government digitization, digital health, digital education, industrial digitization, and others.
• The government provides tax incentives to boost the digital economy and promote data localization in the country. Tax exemptions depend on the investment period. For instance, if an investor invests over USD 2.10 billion in Indonesia, they will receive a tax reduction of up to 100% for around 20 years.
• Regarding sustainability, the country aims to accelerate renewable energy production and contribute around 48% of renewable power to the total electricity by 2021–2030. Also, under the national electricity plan, the country aims to generate around 23% of the electricity from renewable energy sources by 2025. The government of Indonesia has set targets to achieve net zero emissions in the country by 2060.
• The rise in deployment of 5G services is driving the demand for edge data center development in the country to offer low latency and last-mile connectivity to their customers. For instance, Edge Centres has planned to deploy its edge facility, namely EC71, in Denpasar, Indonesia.
• In terms of connectivity, the country is connected with over 50 submarine cables connecting the market to several other countries across the globe. Around six upcoming submarine cables are expected to live in the coming three to four years.
• The country has the largest workforce of over 140 million, of which only 50 million are skilled in ASEAN. The government provides vocational skill training to enhance the skilled workforce in the market. The Ministry of Communication and Informatics (MCI) in Indonesia and Oracle are training around 1,200 educators and 15,000 students with IT skills across 100 institutions over the next four years.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Indonesia colocation market revenue.
• An assessment of the data center investment in Indonesia by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Indonesia data center industry landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Indonesia
  • Facilities Covered (Existing): 65
  • Facilities Identified (Upcoming): 19
  • Coverage: 15+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Indonesia
  • Market Revenue & Forecast (2022-2028)
  • Retail and Wholesale Colocation Pricing
  • Retail vs Wholesale Colocation Market
• The Indonesian market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• Jakarta is the major city and economic capital of Indonesia, and the city is witnessing the majority of data center developments. It offers advantages such as strong connectivity, high skilled workforce, and free trade zones. Followed by Batam and West Java are emerging as the primary data center destinations for investors in the Indonesia data center market.
• The Indonesia data center market has the presence of several local and global operators, such as Biznet Data Center, DCI Indonesia, NTT Global Data Centers, SpaceDC, Princeton Digital Group, Telkom Indonesia, and others.
• The market's growth potential has created immense opportunities for operators and other support infrastructure providers. The market growth has also attracted several new entrants to invest in data center projects. Some of the new entrants in the Indonesia data center market include Data Center First, Digital Edge DC, Equinix, EdgeConneX, Edge Centres, BDx, Pure Data Centres Group, MettaDC, ST Telemedia Global Data Centres, and others. For instance, Equinix announced plans to develop its first facility in Jakarta.
• Due to the significant opportunities, the Indonesia data center market has also attracted several joint ventures by local and global investors to construct data centers in the country. In January 2023, Singtel, in partnership with Telkom Indonesia, announced the construction of a facility in Batam, Indonesia, with a power capacity of around 51 MW. The data center facility will be operated by Telkom Indonesia's data center unit, NeutraDC.
• Data center operators in the country are also procuring green certificates for their facilities for sustainable operations. For instance, Princeton Digital Group (PDG) received Renewable Energy Certificates (RECs) from state-owned electricity firm PLN for three data center facilities in Jakarta, Bandung, and Pekanbaru in the country.
• In terms of construction contractors, the Indonesia data center market has several local and global construction contractors providing their services. For instance, AWP Architects provides architectural reviews for the Space DC JAK-1 data center facility, Keppel Data Centres, and Salim Group IKDC 1 data center facilities.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
  • Jakarta
  • West Java
  • Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Indonesia data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV
• Geography
  • Jakarta
  • West Java
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, Hitachi Vantara, IBM, Inspur, Juniper Networks, Lenovo.
• Data Center Construction Contractors & Sub-Contractors: Aesler Group International, AO, Arkonin, Asdi Swasatya, Aurecon, AWP Architects, Beca, Cundall, Barry-Wehmiller Design Group, DSCO Group, Leighton Asia, NTT Facilities, Obayashi Corporation, Parker van den Bergh, PT PP, Ramboll, Sarana Multi Infrastructure, Tetra, Turner & Townsend, Vale Architects, WT.
• Support Infrastructure Providers: ABB, Caterpillar, Cummins, Cyber Power Systems, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, Legrand, Mitsubishi Electric, Piller Power Systems, Rolls-Royce, Rittal, Schneider Electric, STULZ, Vertiv.
• Data Center Investors: Biznet Data Center, DCI Indonesia, DTP, Elitery, EDGE DC, IndoKeppel Data Centres, Indosat Ooredoo, IDC Indonesia, NTT Global Data Centers, Princeton Digital Group, SpaceDC, Telkom Indonesia.
• New Entrants: BDx, Data Center First, Digital Edge DC, Edge Centres, EdgeConneX, Equinix, Evolution Data Centres, GDS Services, K2 Data Centres, MettaDC, Minoro Energi Indonesia, Pure Data Centres Group, ST Telemedia Global Data Centres.