The Indonesia Data Center Market Size, Share, Trends, & Investments By IT Infrastructure, By Electrical Infrastructure, By Mechanical Infrastructure, By Cooling Systems, By General Construction, & By Tier Standard.

Indonesia Data Center Market – Investment Analysis & Growth Opportunities 2026-2031

INDONESIA DATA CENTER MARKET SIZE ANALYSIS

The Indonesia data center market was valued at USD 2.82 billion in 2025 and is projected to reach USD 6.09 billion by 2031, expanding at a CAGR of 13.71% during the forecast period. Market growth is being fueled by the widespread adoption of digital platforms, increasing deployment of AI and other advanced technologies, expansion of the digital economy, rising internet penetration, growing data traffic, government-led digital initiatives, and the increasing number of mobile and social media users. These trends are expected to generate substantial demand for data storage, processing, and computing infrastructure across the country.

Indonesia is increasingly positioning itself as Southeast Asia’s next major data center hub, benefiting from the land and power constraints faced by Singapore. Jakarta, Batam, and Surabaya have emerged as important locations for hyperscale, cloud, and colocation developments. Among these, Jakarta remains the country’s primary data center market, while Batam is gaining traction as an attractive alternative for regional and international operators.

Batam’s data center ecosystem is closely integrated with Singapore’s digital infrastructure landscape due to its strategic location, connectivity, and supportive investment policies. Situated approximately 20 km from Singapore, Batam offers low-latency connectivity and relatively lower development costs, making it an attractive offshore extension for Singapore-based enterprises and data center operators seeking additional capacity.

Indonesia also benefits from extensive submarine cable connectivity, with approximately 60 existing submarine cable systems linking the country to major international markets, including China, Singapore, Oman, the UAE, Japan, the Philippines, and Taiwan. In addition, around 12 new submarine cable systems are planned or under development, which are expected to strengthen Indonesia’s international connectivity and expand its capacity for cross-border data transmission over the next four to five years.

The Indonesia Data Center Provider Organization (IDPRO) serves as an industry association representing data center providers across the country. The organization focuses on strengthening Indonesia’s data center ecosystem, supporting technological and business development, and contributing to government initiatives related to digital infrastructure and data sovereignty.

Indonesia is emerging as a prominent data center market in Southeast Asia, supported by strong growth prospects and increasing investments in digital infrastructure. Government-led digital transformation programs, accelerating AI adoption, and expanding submarine cable connectivity are creating favorable conditions for data center development and attracting both domestic and international investments.

Jakarta remains the leading data center destination in Indonesia, with continued development of hyperscale facilities, advanced data centers, and dedicated cloud regions. As of September 2025, the city had 38 existing and 13 upcoming data centers, highlighting its position as the country’s primary hub for data center expansion.

Data center construction costs in Indonesia ranged between USD 8 million and USD 9 million per MW in 2025, making the country comparatively cost-effective against regional markets such as Singapore and Malaysia. However, construction expenses are expected to rise over the coming years due to supply chain constraints, elevated inflation, and higher interest rates, which could increase overall project development costs.

INDONESIA DATA CENTER MARKET INVESTMENT BY AREA

The Indonesia data center market by area is projected to reach approximately 752 thousand sq. ft. by 2031, supported by the continued expansion of data center facilities across major cities. The growth of Special Economic Zones (SEZs) is also expected to contribute to market development by creating a supportive environment for infrastructure investments and data center operators.

As of 2025, Indonesia had approximately 25 operational SEZs, providing businesses with various incentives, including tax deductions and other investment benefits. These incentives are expected to attract new data center investments, encourage infrastructure development, and support the expansion of data center facilities across the country.

INDONESIA DATA CENTER MARKET INVESTMENT BY POWER CAPACITY

The Indonesia data center market by power capacity is projected to reach 188 MW by 2031, driven by continued investments in electricity infrastructure and the expansion of data center facilities across key technology hubs. The country is entering an important phase of power capacity development, strengthening its position as one of the fastest-growing data center markets in Southeast Asia.

Indonesia’s robust power generation capabilities, alongside the planned integration of renewable energy sources and increasing adoption of direct Power Purchase Agreements (PPAs), are expected to enhance power availability and reliability for data center operators. These developments will support the construction of large-scale facilities and create favorable conditions for the continued expansion of hyperscale and AI-oriented data centers, which require substantial and dependable power capacity to handle high-density computing and data-intensive workloads.

LIST OF FACILITIES IN INDONESIA

Indonesia Data Center Landscape at a Glance

1. Facilities Covered (Existing): 81
2. Facilities Identified (Upcoming): 24
3. Coverage: 18+ Cities
4. Existing vs. Upcoming (Data Center Area)
5. Existing vs. Upcoming (IT Load Capacity)

Indonesia data center colocation market

1. Colocation Market Revenue & Forecast (2024-2030)
2. Wholesale vs. Retail Colocation Revenue (2024-2030)
3. Retail Colocation Pricing
4. Wholesale Colocation Pricing

KEY TAKEAWAYS

1. IT Infrastructure: The server infrastructure segment held the leading position in the Indonesia data center market in 2025, supported by rising demand for scalable computing capacity and cloud-based services.
2. Electrical Infrastructure: The generator systems segment emerged as the dominant category in Indonesia’s data center market in 2025, accounting for approximately 27% of the market share.
3. Mechanical Infrastructure: In 2025, cooling systems represented the largest share of Indonesia’s data center market, driven by the increasing need for efficient thermal management and reliable cooling solutions.
4. General Construction: The core & shell development segment accounted for approximately 68% of Indonesia's data center market in 2025, reflecting continued investments in new and expanded facilities.
5. Tier Standard: Tier III facilities dominated Indonesia’s data center market in 2025, capturing approximately 44% of the market share due to their high levels of redundancy, reliability, and operational resilience.
6. Colocation: Wholesale colocation services maintained a dominant position in Indonesia’s colocation market, supported by growing demand from cloud providers, hyperscalers, and enterprises requiring scalable data center capacity.

RECENT DEVELOPMENTS & NEWS IN THE INDONESIA DATA CENTER MARKET

1. In May 2025, Google announced the expansion of computing capacity in its Jakarta cloud region to accommodate rising customer demand. The additional capacity is expected to broaden access to cloud-based enterprise AI solutions for Indonesian organizations, enabling businesses to improve workforce productivity, strengthen competitiveness, and enhance the delivery of public services.
2. In July 2025, Oracle launched its first cloud region in Indonesia, the North (Batam) cloud region, comprising one availability zone. The company planned to lease data center space from DayOne’s facility in Batam, strengthening the city’s position as an emerging regional data center and cloud infrastructure hub.
3. In August 2025, Malaysia-based digital services company Zetrix AI Berhad partnered with Indonesia’s PT Royal Solusi Investasi to support the expansion of the ASEAN China AI Lab in Indonesia. The collaboration is expected to contribute to the development and adoption of AI technologies across the Indonesian market.
4. In October 2025, Indonesian digital media company MahakaX partnered with Tencent Cloud to develop AI-powered technologies for creating high-quality digital content. The initiative is intended to support a range of applications, including advertising and consumer education, while strengthening the adoption of AI-enabled digital solutions in Indonesia.
5. In November 2025, Indosat Ooredoo Hutchison (IOH) partnered with Nokia and NVIDIA to establish an AI-RAN research center in Indonesia. The initiative focuses on developing AI-powered Radio Access Networks (RANs), with Indosat integrating Nokia’s RAN technology with NVIDIA’s computing platform to accelerate AI capabilities and support the evolution of intelligent telecommunications infrastructure.

INDONESIA DATA CENTER MARKET ENABLERS

Increasing Adoption of Cloud-based Services

Cloud services have gained immense popularity among businesses seeking to scale their operations rapidly, offering flexibility, enhanced security, and cost efficiency while reducing the need for significant capital investment in physical infrastructure. They also provide critical capabilities such as disaster recovery, high availability, and scalable data storage and processing, encouraging companies and data center operators to transition from traditional IT infrastructure toward cloud-based environments.

This growing demand for cloud services has strengthened the presence of leading global cloud providers in the market, with Google, Amazon Web Services (AWS), and Microsoft serving as the major operators, alongside other prominent providers such as Alibaba Cloud, Tencent Cloud, Oracle, and Huawei Cloud. The expanding footprint of these providers is further supporting cloud adoption and driving demand for data center capacity across Indonesia.

Improvement in Connectivity via Submarine Cables

The ongoing expansion of submarine cable infrastructure is playing a transformative role in Indonesia’s data center market. These cables are critical for increasing international bandwidth and reducing latency, positioning Indonesia as a strategic hub for global data flows and digital services across Southeast Asia. Indonesia currently has around 60 operational submarine cable systems, which strengthen international connectivity while improving data transmission capacity and internet speeds.

Furthermore, approximately 12 new submarine cable systems are under development, which are expected to further enhance Indonesia’s connectivity with key global markets, including the Philippines, Singapore, India, Japan, and the US. The continued development of these cable networks is likely to support growing cloud adoption, cross-border data traffic, and demand for data center infrastructure across the country.

INDONESIA DATA CENTER MARKET TRENDS

Increase in Automation & Digitalization

Indonesia is entering a new phase of digital maturity, with artificial intelligence (AI) emerging as a key driver of this transformation. According to the 2025 AI Index Report by Stanford University, 80% of organizations in Indonesia are optimistic about AI adoption, highlighting the growing confidence in AI-driven technologies. This positive outlook is further supported by BCG’s 2024 AI Maturity Assessment, which classifies Indonesia as a “rising contender,” indicating a high level of readiness but relatively low exposure to AI opportunities.

Furthermore, according to the International Trade Administration, AI adoption in Indonesia is expected to increase by 30% by 2025. Together, these developments indicate strong potential for accelerated AI adoption across businesses and public-sector organizations, which is expected to increase demand for advanced computing infrastructure and data center capacity in the country.

Adoption of Liquid Cooling in Data Centers

Liquid cooling is fast becoming a transformative solution for data centers worldwide, driven by the increasing adoption of AI and cloud services, rising power consumption, and higher heat loads within data center facilities. These factors are making advanced liquid cooling technologies increasingly important for improving energy efficiency and supporting more sustainable data center operations.

Direct liquid cooling, in particular, can achieve a power usage effectiveness (PUE) of approximately 1.02–1.03, outperforming conventional air-cooling solutions in terms of energy efficiency. By reducing the energy required for cooling and managing high-density computing workloads more effectively, direct liquid cooling can also help minimize carbon emissions and support the sustainability goals of modern data centers.

INDONESIA DATA CENTER MARKET RESTRAINTS

Environmental and Natural Disaster Concerns

Data centers face a wide range of physical, natural, and man-made risks, including fires, extreme weather events, and security intrusions. During natural disasters, critical infrastructure such as data centers, submarine cables, and cable landing stations can be severely disrupted. Nearly half of data center facilities experience power outages, with each incident costing organizations more than USD 700,000 on average.

While a significant share of outages is attributed to UPS failures and human errors, the frequency and severity of disruptions caused by natural disasters are expected to increase across the region. Indonesia is particularly vulnerable to natural calamities, including floods, typhoons, volcanic eruptions, and earthquakes, which can pose significant risks to data center operations and supporting infrastructure. This vulnerability highlights the need for robust disaster preparedness, resilient power systems, and effective risk management strategies.

Growing Shortage of Skilled Workforce

Indonesia is currently facing a shortage of skilled data center professionals, particularly with the rapid adoption of emerging technologies such as artificial intelligence (AI). This skills gap can be attributed to limited professional training, low awareness of educational opportunities, insufficient investment in workforce upskilling, and an overall shortage of qualified personnel.

To address these challenges, the Indonesian government is expanding vocational training and professional certification programs to strengthen workforce productivity and technical capabilities. From 2026 onward, greater emphasis is expected to be placed on competency-based training, helping align workforce skills with the evolving requirements of digital infrastructure and the growing demand for specialized data center professionals.

INDONESIA DATA CENTER MARKET SEGMENTATION

INSIGHT BY IT INFRASTRUCTURE

Based on IT infrastructure, the server segment held the largest share of the Indonesia data center market in 2025, accounting for approximately 61%. Its strong market position is supported by the country’s accelerating digitalization, expanding internet user base, and rising adoption of cloud-based applications and services. The increasing development of hyperscale facilities is further strengthening demand for high-performance, scalable, and flexible server infrastructure capable of handling growing volumes of data and computing workloads.

Within the server segment, ODM servers are expected to register comparatively faster growth, driven by increasing investments from hyperscale data center operators in application-specific facilities. These servers offer greater flexibility for customized deployments and are well suited to emerging workloads such as AI, high-performance computing, and other data-intensive applications, making them an increasingly important component of Indonesia’s evolving data center infrastructure.

INSIGHT BY ELECTRICAL INFRASTRUCTURE

Based on electrical infrastructure, generators emerged as the leading segment in Indonesia’s data center market in 2025, capturing approximately 27% of the overall market share. The segment’s dominance reflects the critical need for reliable backup power solutions to ensure uninterrupted operations, particularly as data centers accommodate increasingly power-intensive workloads and demand higher levels of availability and resilience.

Most data center facilities in Indonesia rely on diesel generators, typically supported by more than 24 hours of fuel backup and an N+1 redundancy configuration to ensure power availability during grid failures or other disruptions.

These backup power systems include diesel, natural gas, and bi-fuel generators, with the choice depending on the facility’s operational requirements, power demand, and energy strategy. The segment also encompasses Dynamic Rotary Uninterruptible Power Supply (DRUPS) systems, which provide an additional layer of power protection and continuity for critical IT infrastructure, particularly in facilities requiring high levels of reliability and uptime.

INSIGHT BY MECHANICAL INFRASTRUCTURE

Under mechanical infrastructure, cooling solutions represented the leading segment in Indonesia’s data center market in 2025, capturing approximately 68% of the overall market share. The segment’s dominance is driven by the increasing need for efficient thermal management as data centers accommodate higher computing densities and growing AI and cloud workloads. Indonesian data centers utilize a combination of chilled-water and air-based cooling technologies, with Tier III facilities commonly adopting N+1 or N+2 redundancy to maintain cooling availability during equipment maintenance or unexpected failures. This focus on resilient cooling infrastructure is particularly important for facilities handling high-density computing environments. For example, EdgeConneX’s hyperscale Jakarta campus incorporates an N+1 water-based chilled cooling system, providing additional cooling capacity and helping maintain stable operating conditions for demanding workloads.

INSIGHT BY GENERAL CONSTRUCTION

Based on general infrastructure, the core and shell segment emerged as the leading category in Indonesia’s data center market in 2025, accounting for approximately 44% of the total market share. The cost related to core and shell construction is often higher in Indonesia than in other Southeast Asian countries due to rising investments in hyperscale and modular data centers. The market is primarily driven by greenfield construction, while the development of modular data center projects is also gaining momentum. In addition, the integration of on-site renewable energy sources, including solar and wind power installations, adds complexity to project execution and increases the scope of work for construction contractors. These factors contribute to higher construction costs and reflect the growing emphasis on scalable, flexible, and sustainable data center infrastructure in Indonesia.

INSIGHT BY TIER STANDARD

Based on Tier infrastructure, the Tier III segment represented the largest share of the Indonesia data center market in 2025, accounting for approximately 42% of the total market. Indonesia has more than 85 facilities that have received Tier III certification, either at the design or construction stage. Major data center operators, including BDx Data Centers, NTT DATA, Telkom Indonesia, Princeton Digital Group, Equinix, Digital Realty Bersama, Pure Data Centres, DCI Indonesia, K2 Strategic, and Bitera Data Center, have Tier III facilities in the country.

Tier III projects account for the vast majority of ongoing and underdeveloped data center developments across Indonesia, reflecting the strong preference for resilient infrastructure with redundant capacity and maintainable systems. The continued development of Tier III facilities is expected to support the country’s growing demand for reliable data center capacity driven by cloud adoption, digital transformation, and hyperscale investments.

INSIGHT BY COLOCATION

Wholesale colocation remains the dominant segment in Indonesia’s colocation market, accounting for a larger share of both capacity and market presence than retail colocation.

The segment is expected to experience continued growth as the adoption of cloud-based services accelerates across businesses and industries. Increasing cloud workloads and the need for scalable, reliable infrastructure are likely to encourage cloud service providers to host a portion of their computing and storage requirements through wholesale colocation facilities.

INDONESIA DATA CENTER MARKET VENDOR LANDSCAPE

In the current landscape of colocation investors, several established companies play a significant role. Notable players include BDx Data Centers, Bitera Data Center, Biznet Data Center, Datacomm Diangraha, Digital Realty, DCI Indonesia, DTP Telecom, Digital Edge, Digital Hyperspace Indonesia, Elitery, EdgeConneX, Equinix, Google, IDC Indonesia, IndoKeppel Data Centres, K2 Strategic, MettaDC, NTT DATA, Pure Data Centres, Princeton Digital Group, SM+, ST Telemedia Global Data Centres and Telkom Indonesia.

The market has witnessed several new players emerge over the past few years. The notable entrants include Aslan Energy Capital, BW Digital, DAMAC Digital, DayOne, Gaw Capital, Microsoft, Minoro Energi, Racks Central, Singtel- Nxera and SEAX Global, and several others.

DAMAC Digital announced its investment of $2.3 billion in Jakarta Data Center, which will be an AI-ready data center. It is the company’s second project and a part of its broader strategy to reach over 300MW capacity across Southeast Asia by 2026.

In October 2025, Digital Edge secured $325 million credit facility from local financial firm, PT Bank Central Asia Tbk (BCA), to support its new-build expansion in the Jakarta metro, refinance existing BCA facility, and fund completion of the final phase of the 23MW EDGE2 site located in Jl. Kuningan Mulia, South Jakarta.

Hyperscalers are accelerating investment in Indonesia, positioning the country as a key regional hub for cloud and AI infrastructure in Southeast Asia. Microsoft launched its first data center in May 2025 and is expected to contribute around $2.5 billion to the economy and create 60,000 jobs by 2028. Additionally, it will also support digital training for one million people, with 840,000 already participating in AI capability-building.

In July 2025, Oracle announced the launch of its first cloud region, the Indonesia North (Batam) cloud region with one availability zone. The company will lease a data center from DayOne, which is located in Nongsa Digital Park in Batam

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the region (Area and Power Capacity)
2. Jakarta
3. Other Cities
4. List of Upcoming Facilities in the region (Area and Power Capacity)
5. Jakarta
6. Other Cities

REPORT COVERAGE:

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

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH Units
17. Chiller Units
18. Cooling Towers, Condensers and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & commissioning Services
23. Building & Engineering Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV
31. Geography (Cities)
32. Jakarta
33. Batam

DATA CENTER PROVIDERS/INVESTORS IN INDONESIA

IT INFRASTRUCTURE PROVIDERS: Cisco, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, Hitachi Vantara, IBM, Inspur, Lenovo and NVIDIA

DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS: Aesler Grup, AO Construction, ARKONIN, Asdi Swasatya, Aurecon, AWP Architects, BECA, BW Design Group, Cundall, DSCO Group, Jaya Karya Integrasi, Leighton Asia, NTT Facilities, PT Berca Buana Sakti, PT Jaya Teknik Indonesia, PT Jaya Obayashi, PT AtoZ Teknik, PT Total Bangun Persada Tbk, Parker, van den Bergh, PT PP, PT Indokoei International, PT SMI, PT Kajima Indonesia, PT Sumaraja Indah, PT Acset Indonusa Tbk, RED Engineering, Ramboll, Turner & Townsend, Tetra, VINCI Energies, Vale Architects and WT Asia

SUPPORT INFRASTRUCTURE PROVIDERS: ABB, Caterpillar, Cummins, Cyber Power Systems, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, Legrand, Mitsubishi Electric, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, STULZ and Vertiv.

DATA CENTER INVESTORS: BDx Data Centers, Bitera Data Center, Biznet Data Center, Datacomm Diangraha, Digital Realty Bersama, DCI Indonesia, DTP Telecom, Digital Edge, Digital Hyperspace Indonesia, Elitery, EdgeConneX, Equnix, Google, IDC Indonesia, IndoKeppel Data Centres, K2 Strategic, MettaDC, NTT DATA, Pure Data Centres, Princeton Digital Group, SM+, ST Telemedia Global Data Centres and Telkom Indonesia (NeutraDC).

NEW ENTRANTS: Aslan Energy Capital, BW Digital, DAMAC Digital, DayOne, Gaw Capital, Microsoft, Minoro Energi, Racks Central, Singtel- Nxera and SEAX Global

RESEARCH METHODOLOGY

1. Primary Research: Interviews/interactions with data center developers, colocation providers, contractors, system integrators, and infrastructure providers.
2. Secondary Research: Analysis of annual reports, financial filings, press releases, data sheets, white papers, industry blogs, and tender documents.
3. Historical Period: 2022–2024
4. Base Year: 2025
5. Forecast Period: 2026–2031
6. Approach: Market data is validated using primary industry inputs and secondary sources, with 2025 representing actual values and 2026–2031 representing forecast estimates.

MARKET DEFINITIONS

1. Investment — total capital deployed across IT, electrical, mechanical, and general construction infrastructure for a data center facility, measured in USD.
2. Area (White Floor Space) — the usable raised-floor area allocated to IT equipment within a facility, measured in square feet.
3. Power Capacity — the total IT load a facility is designed to support, measured in megawatts (MW).
4. Tier Standard — the Uptime Institute classification (Tier I–IV) describing a facility's redundancy and fault tolerance.
5. Colocation Type — retail colocation serves tenants requiring smaller rack or cage footprints; wholesale colocation serves tenants leasing dedicated suites or halls.