Indonesia Data Center Market Investment to Reach $3.79 Billion by 2030
"Indonesia Data Center Market Research Report by Arizton"
According to Arizton's latest research report, Indonesia data center market is growing at a CAGR of 7.99% during 2024-2030.
Report Summary
Market Size - Investment (2030): $3.79 Billion
Market Size – Area (2030): 570 Thousand Sq. ft.
Market Size – Power Capacity (2030): 119 MW
CAGR – Investment (2024-2030): 7.99%
Colocation Market Size (2030): $1.15 Billion
Historic Year: 2021-2023
Base Year: 2024
Forecast Year: 2025-2030
Indonesia Emerging Data Center Market
Indonesia is rapidly becoming a key player in the APAC region for data center development, driven by factors such as increasing digitalization, government initiatives, and strong internet penetration. The country benefits from robust inland and submarine cable connectivity, with more than 50 existing submarine cables connecting Indonesia to global markets. These include key cables like the Australia-Singapore cable and SeaMeWe-5. Upcoming cables, such as Apricot and Bifrost, are further enhancing Indonesia's connectivity.
The country's data protection framework, governed by the Personal Data Protection (PDP) Law 2022, ensures safe data usage and protects users from fraud and breaches. Indonesia's extensive network of submarine cables, such as the JaKa2LaDeMa cable, plays a significant role in boosting internal connectivity.
Additionally, the government has launched initiatives like the National Strategy for Artificial Intelligence (2020-2045) and the One Indonesia Data policy to accelerate digital transformation. With the increasing integration of 5G technology, Indonesia is seeing a surge in data generation and storage needs, prompting cloud service providers to invest in the establishment of new data centers in the country. This growing demand for data infrastructure highlights Indonesia's position as an emerging data center hub in the APAC region.
Growth of the Data Center Market in Indonesia: Opportunities and Trends
Indonesia's data center market is experiencing steady growth, with around 81 existing colocation facilities spread across key cities like Jakarta, Batam, and others. The increasing shift towards digital activities in the country has led to a rising demand for colocation services, creating significant opportunities for the sector. New market entrants like SM+, Digital Realty Bersama, Equinix, and Edge Centres are intensifying competition in the space.
The absorption rate of data centers in Indonesia is approximately 75%, with Jakarta seeing higher demand than other cities. The potential for oversupply exists, particularly depending on the demand from hyperscale cloud providers and internet service providers. Batam, benefiting from the spillover demand from Singapore, is emerging as a key location for data centers, especially after the lifting of Singapore's moratorium on new data centers in 2022.
The sectors driving colocation demand include finance, telecom, healthcare, education, e-commerce, and social media, with large enterprises and government agencies increasingly migrating to cloud infrastructure. The government's digitalization efforts, strong infrastructure, and adoption of renewable energy are expected to further boost the growth of Indonesia's data center market.
Growing Investments in Batam, Indonesia: A Data Center Hub
Batam, strategically located near Singapore, is rapidly emerging as a key hub for data center development in Indonesia. This growth is supported by Indonesia's 'Making Indonesia 4.0' plan, which aims to digitize various industries, and the government's creation of the Batam Free Trade Port Area and Special Economic Zone (SEZ) to attract investment. The Batam Industrial Development Authority (BIDA) facilitates these efforts by supporting economic growth in the region.
Batam's location outside the earthquake and tsunami-prone 'Ring of Fire' provides a significant advantage for data center operations. The Nongsa Digital Park (NDP), established in 2018, has become a preferred destination for data center operators due to its tech-friendly infrastructure, independent power stations, and high-speed broadband connectivity.
Additionally, Batam benefits from several existing submarine cables, with upcoming cables like Apricot, Asia Connect Cable-1, and Hawaiki Nui enhancing connectivity. This makes Batam an increasingly attractive destination for data center investments.
Why You Should Buy this Research?
This research offers an in-depth analysis of Indonesia's data center market, providing valuable insights for investors and industry stakeholders. It covers key metrics such as market size, investment in colocation, hyperscale, and enterprise operators, and the power capacity of data centers across the country. The report details the existing and upcoming data centers in 18+ cities, including 81 facilities in operation and 24 planned, alongside forecasts for IT load capacity and area (thousand square feet).
Additionally, the study includes a detailed forecast for the colocation market from 2024 to 2030, highlighting trends in wholesale vs. retail colocation, pricing models, and investments in IT, power, cooling, and construction. The research also provides an analysis of growth opportunities, industry trends, and challenges, along with business overviews of major players in the sector. This comprehensive resource will aid in making informed strategic and investment decisions.
The Report Includes the Investment in the Following Areas:
IT Infrastructure
Server Infrastructure
Storage Infrastructure
Network Infrastructure
Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgears
PDUs
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Rack
Other Mechanical Infrastructure
Cooling Systems
CRAC and CRAH Units
Chillers Units
Cooling Towers, Condensers and Dry Coolers
Other Cooling Units
General Construction
Core & Shell Development
Installation & Commissioning Services
Building & Engineering Design
Fire Detection & Suppression Systems
Physical Security
Data Center Infrastructure Management (DCIM)
Tier Standard
Tier I & Tier II
Tier III
Tier IV
Geography
Jakarta
Batam
Vendor Landscape
IT Infrastructure Providers
Cisco Systems
Dell Technologies
Fujitsu
Hewlett Packard Enterprise
Hitachi Vantara
Huawei Technologies
IBM
Inspur
Lenovo
Data Center Construction Contractors & Sub-Contractors
Aesler Group
AO Construction
ARKONIN
Asdi Swasatya
Aurecon Group
Beca
Cundall
BW Design Group
DSCO Group
Leighton Asia
NTT Facilities
Obayashi Corporation
Parker van den Bergh
PT PP
Ramboll
PT SMI
Tetra
Turner & Townsend
Vale Architects
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
Vertiv
Data Center Investors
BDx Data Centers
Biznet Data Center
Bitera Data Center
Datacomm Diangraha
DCI Indonesia
DTP Telecom
Elitery
EDGE DC
EdgeConneX
IndoKeppel Data Centres
IDC Indonesia
MettaDC
NTT DATA
Princeton Digital Group
Pure Data Centres
ST Telemedia Global Data Centres
Telkom Indonesia (NeutraDC)
New Entrants
BW Digital
DayOne
Digital Realty Bersama
EDGNEX Data Centres by DAMAC
Equinix
Evolution Data Centres
Gaw Capital
K2 Data Centres
Microsoft
Minoro Energi
SM+
SEAX Global
Singtel (Nxera)
Key Questions Answered in the Report:
How big is the Indonesia data center market?
How much MW of power capacity will be added across Indonesia during 2025-2030?
What is the growth rate of the Indonesia data center market?
Which cities are included in the Indonesia data center market report?
What factors are driving the Indonesia data center market?
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Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
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