Indonesia Artificial Intelligence (AI) Optimised Data Center Market Size
Indonesia Artificial Intelligence (AI) Optimised Data Center Market Analysis
The Indonesia Artificial Intelligence Optimised Data Center Market size is estimated at USD 0.66 billion in 2025, and is expected to reach USD 1.44 billion by 2030, at a CAGR of 16.91% during the forecast period (2025-2030).
Indonesia is making significant strides in the artificial intelligence (AI) sector with the establishment of advanced AI data centers. Indosat Ooredoo Hutchison, in collaboration with Huawei, has launched the country's first AI experience center at Solo Technopark, supported by 5G infrastructure. This initiative aligns with the government's broader digital transformation agenda, which includes fostering AI innovation and expanding digital access across the nation. The Indonesian government has also introduced policies to encourage investments in AI and data center infrastructure, aiming to position the country as a regional hub for AI technology.
AI data centers in Indonesia are designed to handle large-scale data processing and storage, enabling advanced machine learning and AI capabilities. With the rise of smart city projects and digital transformation initiatives, AI data centers are becoming essential for industries such as telecommunications, healthcare, and finance. Indonesia's focus on developing AI infrastructure reflects its commitment to leveraging technology for economic growth and global competitiveness.
Indonesia is rapidly positioning itself as a hub for AI data centers, fueled by substantial investments and strategic partnerships. With Microsoft committing USD 1.7 billion to enhance cloud services and AI infrastructure, the country is advancing its digital transformation in line with its "Golden Indonesia 2045" vision. Additionally, collaborations like the joint venture between Equinix, Inc. and PT Astra International Tbk aim to strengthen Indonesia's digital infrastructure, addressing the growing demand for secure, scalable, and interconnected solutions.
NeutraDC, with a footprint of 29 data centers nationwide, boasts five global and three enterprise facilities, complemented by several edge data centers. The company has one operational hyperscale data center in Jakarta and is in the process of developing two additional ones. Notably, a new hyperscale facility in Batam, which commenced construction in June 2024, is being tailored to bolster artificial intelligence (AI) infrastructure. This development aligns with Indonesia's growing focus on AI-driven technologies and infrastructure to support the country's digital transformation initiatives.
Indonesia Artificial Intelligence (AI) Optimised Data Center Market Trends
Hyperscale and AI-Optimized Data Centers Thrive Amid Strategic Infrastructure Expansion
Indonesia is developing as a hub for hyperscale and AI-centric data centers, driven by infrastructure developments and investments from both local and global entities. This growth is attributed to the nation's digital transformation efforts and the increasing demand for AI capabilities.
EdgeConneX has expanded its Jakarta hyperscale data center campus, tripling its capacity to exceed 200 MW after securing a 45,000 sqm land parcel in Bekasi, Cikarang. This expansion addresses the growing demand for data center services, particularly in cloud and AI technologies, and strengthens Jakarta's role in the digital landscape.
PT Telkom Indonesia, in collaboration with SingTel and Medco Power Indonesia, has announced a Rp1.4 trillion (around US$85 million) investment to establish an AI-centric data center in Batam over the next five years. Led by Telkom’s subsidiary, PT Telkom Data Ekosistem (NeutraDC), this facility is designed for intensive AI workloads. This initiative is part of Telkom’s strategy to enhance its digital operations and drive technological advancements in Indonesia.
Infrastructure growth is playing a significant role in supporting hyperscale and AI-optimized data centers in Indonesia. The nation is focusing on digital transformation and attracting investments to strengthen its presence in the regional data center and AI landscape.
Advanced Facilities in Indonesia Drive the Adoption of Renewable Energy and Efficient Cooling as Sustainability Becomes a Core Strategy
In Indonesia, data centers are adopting liquid cooling and immersion technologies to manage the increasing demands of AI workloads. These advanced cooling methods efficiently handle the heat generated by high-performance GPUs and AI accelerators, which are critical for machine learning. For instance, EDGE DC’s use of StatePoint® liquid cooling reduces power and water consumption, aligning with sustainability goals while maintaining cost and performance efficiency.
Indonesia’s regulatory framework is evolving to support green data infrastructure. The Ministry of Energy and Mineral Resources (ESDM) is introducing incentives to promote renewable energy in large-scale IT operations. These include power purchase agreements (PPAs) for green energy, Renewable Energy Certificates (RECs), and partnerships under the National Energy Grand Strategy (GSEN). These policies are essential for ensuring that rapid digitalization aligns with the country’s climate objectives.
Public-private collaborations are shaping the development of AI data centers. For example, BDx Indonesia’s AI campus is a result of partnerships between global tech investors and local telecom providers. These collaborations leverage international expertise and local regulatory support, fostering green infrastructure. Additionally, the focus on renewable strategies attracts ESG-conscious global investors, accelerating Indonesia’s shift toward sustainable AI infrastructure.
Indonesia’s “Digital Indonesia 2045” roadmap emphasizes smart cities and AI integration in governance and industry, requiring sustainable and high-performing edge data centers. These centers are being designed with modular layouts for energy efficiency and strategically located to minimize latency and energy transmission losses. By integrating renewable energy, efficient cooling, and proximity to end-users, these facilities are setting a benchmark for eco-friendly digital growth in Southeast Asia.
Indonesia Artificial Intelligence (AI) Optimised Data Center Industry Overview
Indonesia's AI data center market is rapidly evolving, fueled by surging demand for sophisticated digital infrastructure. This infrastructure is pivotal for supporting artificial intelligence (AI), cloud computing, and other burgeoning technologies. Major players, including BDx Data Centers, Princeton Digital Group, NTT Communications, PT DCI Indonesia, and Telkomsigma, are at the forefront. These companies are not just expanding their data center capacities but are also harnessing state-of-the-art technologies. This is in direct response to the escalating demands of AI-centric applications and cloud services. Further amplifying this growth is the Indonesian government's proactive initiatives, designed to bolster the nation's AI capabilities and spur innovation. Collectively, these dynamics firmly establish Indonesia as a formidable contender in the global AI data center arena, with promising growth trajectories on the horizon.
In September 2024, BDx Data Centers is actively expanding its presence in Indonesia's AI data center market, driven by the rising demand for advanced digital infrastructure to support AI and cloud computing. Princeton Digital Group, NTT Communications, PT DCI Indonesia, and Telkomsigma are also key players in this market. These companies are investing in increasing data center capacities and adopting cutting-edge technologies to cater to the growing needs of AI-driven applications and cloud services. The market's growth is further supported by the Indonesian government's initiatives aimed at enhancing AI capabilities and fostering innovation within the country. These factors collectively position Indonesia as a significant player in the global AI data center landscape, with strong growth prospects in the coming years.
In March 2024, NTT Communications (a division of NTT DATA) significantly expanded its data center operations in Indonesia, focusing on AI and digital transformation. Key developments include the construction of a new data center, Jakarta 2 Annex (JKT2A), and the launch of new services like Agentic AI for Hyperscaler AI Technologies. These initiatives are designed to support Indonesia's growing digital economy and provide businesses with advanced AI solutions.
Indonesia Artificial Intelligence (AI) Optimised Data Center Market Leaders
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DCI Indonesia
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Princeton Digital Group Indonesia
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ST Telemedia GDC Indonesia
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Telkomsigma / NeuCentrIX
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NTT Global Data Centers Indonesia
- *Disclaimer: Major Players sorted in no particular order
Indonesia Artificial Intelligence (AI) Optimised Data Center Market News
- April 2025: Microsoft announced plans to launch its first data center in Indonesia, named the Indonesia Central Cloud Region, by Q2 2025. This facility, under construction since 2021, will become part of Microsoft’s extensive global network of over 60 cloud regions. The data center is expected to play a pivotal role in supporting AI-driven innovations and services in Indonesia, catering to the growing demand for advanced cloud and AI solutions. Additionally, the project is anticipated to generate significant economic benefits, including the creation of over 106,000 jobs across key sectors such as manufacturing, finance, government, and communications. The initiative highlights Microsoft’s commitment to advancing cloud and AI technologies in Indonesia, aligning with its broader strategy to support digital transformation in the region.
- March 2025: LG Sinar Mas broke ground on a data center in Jakarta, Indonesia. The company is a joint venture between LG CNS, a South Korean data center service provider, and PT SMPlus Digital Investment, a digital infrastructure platform backed by Indonesian conglomerate Sinar Mas.
Indonesia Artificial Intelligence (AI) Optimised Data Center Industry Segmentation
The research encompasses the full spectrum of AI applications in data centers, covering hyperscale, colocation, enterprise, and edge facilities. The analysis is segmented by component, distinguishing between hardware and software. Hardware considerations include power, cooling, networking, IT equipment, and more. Software technologies under scrutiny encompass machine learning, deep learning, natural language processing, and computer vision. The study also evaluates the geographical distribution of these applications.
Additionally, it assesses AI's influence on sustainability and carbon neutrality objectives. A comprehensive competitive landscape is presented, detailing market players engaged in AI-supportive infrastructure, encompassing both hardware and software utilized across various AI data center types. Market size is calculated in terms of revenue generated by products and solutions providers in the market, a nd forecasts are presented in USD Billion for each segment.
By Data Center Type | CSP Data Centers | ||
Colocation Data Centers | |||
Others (Enterprise and Edge) | |||
By Component | Hardware | Power | |
Cooling | |||
IT Equipments | |||
Others | |||
Software Technology | Machine Learning | ||
Deep Learning | |||
Natural Language Processing | |||
Computer Vision | |||
Services - (Managed Services, Proffesional Services, etc) |
CSP Data Centers |
Colocation Data Centers |
Others (Enterprise and Edge) |
Hardware | Power |
Cooling | |
IT Equipments | |
Others | |
Software Technology | Machine Learning |
Deep Learning | |
Natural Language Processing | |
Computer Vision | |
Services - (Managed Services, Proffesional Services, etc) |
Indonesia Artificial Intelligence (AI) Optimised Data Center Market Research FAQs
How big is the Indonesia Artificial Intelligence Optimised Data Center Market?
The Indonesia Artificial Intelligence Optimised Data Center Market size is expected to reach USD 0.66 billion in 2025 and grow at a CAGR of 16.91% to reach USD 1.44 billion by 2030.
What is the current Indonesia Artificial Intelligence Optimised Data Center Market size?
In 2025, the Indonesia Artificial Intelligence Optimised Data Center Market size is expected to reach USD 0.66 billion.
Who are the key players in Indonesia Artificial Intelligence Optimised Data Center Market?
DCI Indonesia, Princeton Digital Group Indonesia, ST Telemedia GDC Indonesia, Telkomsigma / NeuCentrIX and NTT Global Data Centers Indonesia are the major companies operating in the Indonesia Artificial Intelligence Optimised Data Center Market.
What years does this Indonesia Artificial Intelligence Optimised Data Center Market cover, and what was the market size in 2024?
In 2024, the Indonesia Artificial Intelligence Optimised Data Center Market size was estimated at USD 0.55 billion. The report covers the Indonesia Artificial Intelligence Optimised Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Indonesia Artificial Intelligence Optimised Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Indonesia Artificial Intelligence (AI) Optimised Data Center Industry Report
Statistics for the 2025 Indonesia Artificial Intelligence (AI) Optimised Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Artificial Intelligence (AI) Optimised Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.