Indonesia Data Center Market - Investment Analysis & Growth Opportunities 2025-2030

INDONESIA DATA CENTER MARKET SIZE & OUTLOOK

The Indonesia data center market size will witness investments of USD 3.79 billion by 2030, growing at a CAGR of 7.99% during the forecast period. At present, Indonesia is one of the emerging destinations in the APAC data center region. In 2024, data center operators in the country accounted for a large sum of the total power capacity added across the APAC region. Jakarta and Batam are the preferred cities for the data center operators attracting local and foreign investors to establish their presence in the market. For instance, in March 2025, Digital Realty announced its entry into the Indonesia data center market through a joint venture with Bersama Digital Infrastructure Asia and the acquisition of two Bersama Digital Data Centres (BDDC) data centers in Jakarta.

Batam is emerging as a promising location in the Indonesia data center market, driven by factors such as the availability of space for building structures at a cheaper price, the city’s proximity to Singapore for business purposes, and the availability of a Special Economic Zone (SEZ). This makes Batam an important city for data center operators to start their business operations.

The significant Indonesia data center market growth is driven by the rapidly evolving cloud computing landscape, ongoing digital transformation initiatives, as well as the country's strategic geographic location with submarine cable connectivity among EMEA, Africa, and Europe. Indonesia benefits as a regional technology center, driven by initiatives such as tax incentives, the 4.0 initiative, an easy licensing process, and sales tax exemptions. The Indonesian government offers relaxations on taxes for new investors in the data center sector. Furthermore, global cloud providers, such as Microsoft, Tencent Cloud, Google Cloud, Amazon Web Services (AWS), Huawei Cloud, and Alibaba Cloud, are establishing or expanding their operations in the Indonesia data center market.

INDONESIA DATA CENTER MARKET KEY HIGHLIGHTS

1. The number of third-party data center facilities in Indonesia is gradually growing, with a good start. The Indonesia data center market is established in the APAC region and has around 80 existing colocation data centers spread across the country, with most of them being in Jakarta.
2. Wholesale colocation continues to dominate the colocation market in Indonesia with a higher capacity and market share compared with retail colocation. The demand for wholesale colocation is expected to grow owing to the growth in the use of cloud-based services. Cloud operators are likely to store part of their workloads via wholesale colocation.
3. The Indonesian government is dedicated to fostering a green economy, which is evident in initiatives including the implementation of a carbon tax. Additionally, Indonesia has outlined ambitious targets to achieve net-zero emissions by 2060. Power pricing in the market is in an average range compared to nearby countries such as Thailand and Singapore.
4. Some of the leading colocation operators in Indonesia include DCI Indonesia, Telkom Indonesia, ST Telemedia Global Data Centres, Princeton Digital Group, NTT DATA, and others. We believe the wholesale/hyperscale colocation services will contribute significantly to revenue growth during the forecast period.
5. Liquid cooling is spreading as a transformative solution for data centers worldwide. This can be attributed to the increasing demand for the adoption of AI and cloud services in data facilities, leading to increased power consumption and rising heat loads; this is making liquid cooling in data centers necessary for more sustainability. For instance, In June 2024, ST Telemedia Global Data Centres announced to expansion of its AI-ready data centers across Southeast Asia including Indonesia. The company is set to use advanced cooling solutions that support liquid immersion cooling and direct-to-chip techniques in the data centers by collaborating with various players.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and Indonesia colocation market revenue.
2. Assessment of the data center investment in Indonesia by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (thousand square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Indonesia data center market landscape, an in-depth market analysis, and insightful predictions about the Indonesia data center market size during the forecast period.
5. Snapshot of existing and upcoming data center facilities in Indonesia
6. Facilities Covered (Existing): 81
7. Facilities Identified (Upcoming): 24
8. Coverage: 18+ Cities
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in Indonesia
12. Colocation Market Revenue & Forecast (2024-2030)
13. Wholesale vs. Retail Colocation Revenue (2024-2030)
14. Retail Colocation Pricing
15. Wholesale Colocation Pricing
16. The Indonesia data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
17. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
18. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
19. A transparent research methodology and the analysis of the demand and supply aspects of the market.

INDONESIA DATA CENTER MARKET VENDORS

1. Global cloud providers such as Microsoft, Amazon Web Services (AWS), Tencent Cloud, Huawei Cloud, Google Cloud, and Alibaba Cloud are establishing and expanding their operations in the Indonesia data center market. All the cloud providers continue to grow their cloud footprint, capitalizing on the expanding digital economy of the country in Jakarta.
2. The Indonesia data center market is primarily dominated by regional operators, including Princeton Digital Group, Telkom Indonesia, and NTT DATA. The data operator BDx Data Centers has also started to mark its significant presence in the market. The Indonesia data center market is also witnessing several new entrants, which include Equinix, Gaw Capital, DayOne, EdgeConneX, and others.
3. Telkom Indonesia, NTT DATA, and Princeton Digital Group have established many data centers in the Indonesia data center market and have many facilities in line for setting up in the future. However, the market share is likely to change during the forecast period as other operators are involved in the development of additional data center facilities that are likely to go live during the forecast period.
4. Telecom operators such as DTP Telecom and Telkom Indonesia are the major telecom operators that have launched commercial 5G services across the country.