Market Size of Indonesia Data Center Construction Industry
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | 14.09 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Data Center Construction Market Analysis
The Indonesia Data Center Market size is expected to reach USD 4 billion by 2029, at a CAGR of 14.09% during the forecast period (2023-2029). One of the critical sources of growth in the region is its increasing internet economy.
- The Southeast Asian region's internet economy accounts for over USD 100 billion, according to SpaceDC Pte Ltd, and it is predicted to expand to USD 300 billion by 2025. As a result, the demand for data services and infrastructure is expected to grow rapidly throughout the forecast period.
- Indonesia ranks lower in the competitive index than other Southeast Asian countries. However, the potential commercial upside for data center players is significant. Indonesia is witnessing a growing digital economy, coupled with the rapid growth of start-up companies and an ever-growing population, leading to a boost in hyper-scale data centers.
- The COVID-19 pandemic posed additional stress on the overall economy across sectors and highlighted the contribution and potential of the online workplace facilitated by data centers. Due to the digital economy's growth, the data center boom in the market led several global vendors to expand in Indonesia and tap into the emerging opportunities in the studied market. For instance, in November 2021, Smartfren announced a partnership with the UAE technology firm G42 to build a 1,000 MW data center in Indonesia. The investment is expected to strengthen the development of the digital industry in Indonesia and maintain national data sovereignty, being carried out by the government of Indonesia. It will also steer multiple international vendors to focus on the digital economy.
- According to the report titled "Digital 2021" by content management service, HootSuite, and social media marketing agency, We Are Social, the number of internet users in Indonesia increased by 27 million (+16%) between 2020 and 2021. Internet penetration in Indonesia stood at 73.7% in January 2021.
- Indonesia's current e-commerce market is similar to China's online marketplace, with a large pool of entrepreneurial sellers providing goods based mainly on social media recommendations. The country is also Asia's foremost mobile-first nation, with one of the highest mobile-Facebook usage rates, aggressively promoting the growth of data centers.
