Indonesia Data Center Market Analysis by Mordor Intelligence
The Indonesia data center market size is expected to increase from USD 1.83 billion in 2026 to USD 2.08 billion in 2027 and reach USD 4.05 billion by 2032, growing at a CAGR of 14.28% over 2027-2032.
The data-center investment and power-infrastructure build-out in Indonesia, advancing from April 2026 to support AI and cloud workloads, is broadening potential capacity supply. Growing digital workloads favor local cloud facilities configured around the applications they support, including banking applications with continuity requirements tied to infrastructure design. Phased developments, private connectivity, and in-country data handling give suppliers different ways to address those workloads. Renewable-energy sourcing constraints and equipment duties can increase the difficulty of delivering that capacity. Aligning power readiness with usable capacity and buyer deployment schedules consequently becomes central to converting demand into services.
Key Report Takeaways
- By data center size, large facilities held a 44.83% share of the Indonesia data center market size in 2026, while medium facilities are forecast to grow at a CAGR of 21.7% over 2027-2032.
- Tier standards were led by Tier 3, with 84.94% of market spending in 2026 and the fastest forecast CAGR of 20.85% over 2027-2032.
- Across facility types, colocation represented a 70.2% Indonesia data center market share in 2026, whereas hyperscale/self-built facilities are forecast to grow at a CAGR of 21.5% over 2027-2032.
- End-user industry demand was led by IT and ITES, with 30.55% of market spending in 2026, while BFSI is forecast to grow fastest at a CAGR of 20.5% over 2027-2032.
- By hotspot, Jakarta held 56.72% of market spending in 2026, while Batam is forecast to grow fastest at a CAGR of 22.3% over 2027-2032.
- Geographic demand was led by Jakarta, with 56.72% of market spending in 2026, and Batam is forecast to grow fastest at a CAGR of 22.3% over 2027-2032.
Note: Market numbers in this report are based on Mordor Intelligence's proprietary estimation framework, which combines nine months of actuals with Q4 projections for base year 2026.
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Market Trends and Insights
Drivers Impact Analysis of Indonesia Data Center Market*
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Accelerating hyperscaler cloud region roll-outs (AWS, Microsoft, Google) | +5.7% | Jakarta cloud infrastructure clusters | Medium term (2-4 years) |
| Government tax incentives and eased foreign ownership for digital infrastructure | +2.7% | Nationwide | Medium term (2-4 years) |
| Rapidly rising internet and mobile data consumption among Indonesia’s young population | +4.9% | Nationwide | Long term (≥ 4 years) |
| Undersupply of Tier-3/4 capacity | +3.8% | Nationwide | Short term (≤ 2 years) |
| Secured long-term PLN PPAs enabling AI-ready megawatt blocks | +1.9% | Bekasi and Batam infrastructure clusters | Medium term (2-4 years) |
| Batam SEZ emerging as spill-over hub for Singapore load balancing | +1.4% | Batam cross-border infrastructure cluster | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Accelerating hyperscaler cloud region roll-outs (AWS, Microsoft, Google)
Expansion within an established cloud region can create additional demand for Indonesian facility capacity as providers extend local computing resources. Google Cloud reported expanding computing capacity at its Jakarta Cloud Region in May 2025.[1] Google linked the expansion to giving Indonesian organizations access to cloud-based enterprise AI capabilities. For facility suppliers, this creates a capacity opportunity connected to a provider’s existing regional operations and the applications those resources can support. Additional computing resources can translate into demand for the space, power, and cooling needed to operate them in-country. Incremental infrastructure contracts can extend a supplier’s relationship with an established cloud region beyond the original facility delivery.
Government tax incentives and eased foreign ownership for digital infrastructure
Tax relief can strengthen the economics of eligible hosting projects before additional tenant demand translates into operating revenue. The World Bank reported in 2026 that digital-economy activities, including hosting and data processing, among Indonesia’s 245 prioritized business lines qualify for tax holidays.[2] For a qualifying developer, reduced taxation can improve the return available from capacity supplied over the facility’s operating life. That advantage supports investment where expected service earnings would otherwise offer insufficient compensation for the capital committed to a new site. Eligibility determines which expansions receive the tax holiday, so a hosting project’s investment case depends on its fit within prioritized digital-economy activities.
Rapidly rising internet and mobile data consumption among Indonesia’s young population
Mobile traffic growth and high internet penetration create a broad potential workload for Indonesian data centers. Telkom Indonesia reported Telkomsel’s standalone mobile data payload at 5,798 petabytes in the first quarter of 2026, compared with 5,643 petabytes a year earlier. APJII’s 2026 survey recorded internet penetration of 89.02% within Gen Z and 90.34% within the millennial population. Separately, Telkom reported 96% occupancy at NeutraDC’s Cikarang hyperscale facility in the first half of 2026. These observations combine a large online audience with an example of heavily used domestic infrastructure, supporting capacity offers tied to actual application commitments. At the reported Cikarang occupancy, limited spare capacity makes expansion of usable space, power, and cooling a condition for accommodating substantially more workloads.
Undersupply of Tier-3/4 capacity
In August 2026, Indonesia Data Center Provider Organization chairman Hendra Suryakusuma said national data-center demand far exceeded the pace of construction. That mismatch makes the timing of usable supply commercially important for operators competing for capacity commitments. Buyers seeking Tier 3 or Tier 4 facilities need their required infrastructure standard and deployment schedule to be met together. A large future campus can leave a near-term application deployment dependent on the first phase entering service. For suppliers, phased commissioning can create an opportunity to address waiting demand before the entire development is complete. A buyer’s deployment date can favor a smaller commissioned phase over a larger development whose capacity is not ready for use.
Restraints Impact Analysis of Indonesia Data Center Market*
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Grid carbon intensity and coal reliance increasing sustainability compliance costs | -2.2% | Nationwide | Long term (≥ 4 years) |
| High import tariffs and non-tariff barriers on critical IT and cooling equipment | -1.6% | Nationwide | Short term (≤ 2 years) |
| Permitting complexity and land-acquisition hurdles across multi-agency approvals | -0.9% | Jatiluhur construction sites in West Java | Short term (≤ 2 years) |
| Limited domestic skilled workforce for GPU-dense operations driving wage inflation | -1.3% | Nationwide | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Grid carbon intensity and coal reliance increasing sustainability compliance costs
Renewable-energy sourcing can constrain service bids even where an operator has secured electricity. Coal consumption across Indonesia’s PLN-owned and leased plants, independent producers, and project plants reached 78.41 million metric tons in 2025, up 9.3% from 2024. In August 2026, an industry representative reported renewable-energy requirements in some Western European and North American buyers’ requests for proposals, alongside Indonesian renewable energy certificate demand exceeding supply. For operators pursuing those contracts, a certificate shortage can complicate qualification and add sourcing work before capacity earns revenue. PT Telkom Data Ekosistem (NeutraDC), Telkom’s data-center operating company, obtained a PLN Renewable Energy Certificate in 2025. The remaining constraint is securing sufficient eligible supply for each bid, exposing operators to additional cost or delay despite available facility capacity.
High import tariffs and non-tariff barriers on critical IT and cooling equipment
Imported power and network equipment can make additional capacity more expensive to bring into service. The World Bank reported in 2026 that Indonesia’s 5% duties on uninterruptible power supply units and servers and 10% duty on switching and routing equipment raise costs and limit access. Some products benefit from Information Technology Agreement reductions, while uninterruptible power supply units and similar power equipment are not fully covered. For an operator using affected imports, those duties increase the capital required to support each deployment. Recovering that cost through facility-service charges can weaken the economics of expanding capacity for price-sensitive tenants. Equipment-level exemptions leave an uneven cost base, so relief on some IT imports does not remove the financing burden of partly dutiable power systems.
*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.
Indonesia Data Center Market Segment Analysis
By Data Center Size:
Large Facilities Lead While Medium Deployments ScaleLarge data centers accounted for a 44.83% share of the Indonesia data center market size in 2026. DCI said its 36 MW JK6 facility in Cibitung, West Java, launched on June 3, 2025, and was Indonesia’s largest data center built as a single facility. Concentrating that capacity in one building gives buyers a single location for a substantial deployment, reducing the number of separate facility interfaces they would need to coordinate.
Medium data centers are the fastest-growing segment, with a forecast CAGR of 21.7% over 2027-2032. For an Indonesian enterprise introducing a private-cloud environment, medium capacity can align the power and cooling commitment with that single application platform. A contained deployment limits the scale of unused infrastructure the enterprise must finance while preserving a dedicated operating environment.
By Tier Standard:
Tier 3 Qualification Supports Capacity DifferentiationTier 3 was the largest segment, accounting for 84.94% of market spending in 2026, and is the fastest-growing segment, with a forecast CAGR of 20.85% over 2027-2032. On October 30, 2025, NeutraDC Nxera Batam reported 18 MW of initial capacity and gradual expansion to 54 MW planned at its Tier III design-certified hyperscale project. Uptime Institute’s certification covered the project’s design documents. That scale and engineering qualification can make the development relevant to customers seeking a defined tier standard with room for staged capacity growth. Design certification addresses the architecture, so commitments for later workloads must also account for delivery of the planned capacity.
Within Tier 1 and 2, Telkom’s Jayapura facility illustrates a locally oriented colocation service. Telkom opened the facility, its 28th neuCentrIX edge data center, on December 4, 2025, describing an international Tier II security standard. At opening, Telkom reported 96 racks of capacity for Jayapura and the surrounding area. That service configuration can suit a customer seeking local colocation access within the facility’s stated standard, connecting a regional service footprint with a defined hosting environment. Telkom’s first Papua site gave Jayapura-area customers a shared 96-rack hosting option, separating access to local infrastructure from a commitment to develop their own facility.
By Data Center Type:
Colocation Scale Meets Hyperscale ExpansionColocation represented a 70.2% Indonesia data center market share in 2026. JLL reported in January 2026 that Jakarta’s colocation inventory had tripled since 2021. Indonet reported that Digital Edge Indonesia’s EDGE1 was fully contracted and EDGE2 approximately 70% contracted at the end of FY2025. The combination of expanded inventory and substantial commitments illustrates a service model with both an established facility base and buyer take-up. Contracted capacity can give operators a basis for sequencing additional supply, connecting expansion decisions to identifiable demand for a service rather than relying entirely on future leasing expectations.
Hyperscale/self-built facilities form the fastest-growing segment, with a forecast CAGR of 21.5% over 2027-2032. Microsoft opened Indonesia Central, an AI-ready hyperscale cloud region, with 3 availability zones in May 2025. Its zones provide independent power, cooling, and networking for higher availability needs. This configuration creates an infrastructure requirement that extends across separately supported zones, linking the cloud-service proposition to the way physical capacity is organized. Suppliers that coordinate capacity across independently supported zones can address a regional deployment as an integrated project.
By End User Industry:
IT Services Lead While Banking Infrastructure ExpandsIT and IT-enabled services (ITES) formed the largest segment, with 30.55% of market spending in 2026. The U.S. Commercial Service expected Indonesia’s IT-services revenue to reach USD 6.14 billion in 2025. That expectation covered IT outsourcing, cloud computing, and data center services. The range of activities provides multiple infrastructure use cases for firms delivering hosted applications and outsourced IT operations, allowing capacity suppliers to address different service providers within one buyer category. An outsourcing provider can translate a new application-service contract into demand for hosted infrastructure, giving capacity suppliers an indirect route to enterprise customers.
The banking, financial services, and insurance (BFSI) segment is the fastest-growing, with a forecast CAGR of 20.5% over 2027-2032. In 2025, PT Bank Rakyat Indonesia (Persero) Tbk. strengthened data-center capacity and successfully implemented cloud-based active-active infrastructure for its BRImo and Qlola applications. The bank’s upgrades included device modernization and implementation of Tier-III standards to support service reliability. This combines work on bank-operated facilities with cloud implementation for specific critical applications, giving infrastructure demand a connection to the resilience of named customer services. Bank-focused suppliers can compete on continuity for named applications as well as the engineering of the underlying facility.
By Hotspot:
Jakarta Offers Operating Scale While Batam Secures PowerJakarta was the largest segment, with 56.72% of market spending in 2026. Cushman & Wakefield reported 356 MW of operating data center capacity in Jakarta and its surrounding areas in the first half of 2026. That scale positions the hotspot as a substantial existing supply pool, giving facility buyers an operating base against which to assess new capacity offers. In the first half of 2025, steady retail and enterprise demand accompanied a decline in Jakarta vacancy from 36% in the second half of 2024 to 31%. Tenant expansion can absorb spare capacity even in a large hub, making the availability of a suitably sized block central to an enterprise’s location choice.
Batam is the fastest-growing segment, with a forecast CAGR of 22.3% over 2027-2032. On April 17, 2026, PT PLN Batam and DayOne signed a 511 MVA electricity purchase agreement for DayOne’s planned second hyperscale campus in Kabil, Batam. Power supply was scheduled in phases across 2026-2027. A signed supply commitment can provide a clearer infrastructure basis for organizing campus development around the power required for successive capacity releases. Sequencing construction against the agreed power phases can limit the capacity built before its electricity supply is scheduled to become available.
Geography Analysis
Jakarta Data Center Market
Jakarta accounted for a 56.72% share of the Indonesia data center market size in 2026. Equinix inaugurated JK1 in the Central Business District in May 2025 through a joint venture with PT Astra International, offering 550 cabinets in its first phase. The site is close to major internet exchanges, connecting its facility footprint with an established network-interconnection setting. For customers requiring both domestic capacity and exchange access, that combination can make a centrally located facility commercially useful beyond its cabinet count, supporting demand for sites that combine hosting and connectivity.
Batam Data Center Market
Batam is the fastest-growing geography, with a forecast CAGR of 22.3% over 2027-2032. On June 9, 2026, NeutraDC reported that its joint venture’s planned BTM-1 hyperscale facility had secured commitments for all capacity before launch. It also reported beginning preparations for a second facility, BTM-2. Gorilla Technology, an AI, security, and data-analytics provider, was one partner that secured capacity at BTM-1. Having commitments before launch can reduce initial leasing uncertainty for a developer, creating a basis for a further capacity phase centered on identified customer requirements and a more focused route to securing service demand.
Surabaya’s role includes geographic redundancy through DCI’s E2, inaugurated on April 6, 2026, with 9 MW of IT capacity and a stated eastern Indonesia connectivity function. ION Network began operating a Bandung data center and branch office on February 4, 2026, to provide local connectivity and data services to businesses and residents. On the Sulawesi coast, Telin, a Telkom Indonesia subsidiary, inaugurated a cable landing station at Kalasey, Minahasa, in July 2025 as part of the Bifrost international subsea cable project developed with Keppel and Meta.
Regulatory Framework and Outlook
The comparison covers selected jurisdictions, Indonesia and Jakarta, from the perspective of a commercial data-center operator evaluating government-cloud demand and facility development. National rules affect the providers eligible to serve public electronic-system operators, while Jakarta’s framework establishes the permit sequence for covered building projects. The commercial distinction is between access to a customer group and authorization to develop a physical facility.
Regulatory Table of Indonesia Data Center Market
| Decision factor | Indonesia | Jakarta |
|---|---|---|
| Primary authority | Ministry of Communication and Digital Affairs | Head of Jakarta’s licensing agency, DPMPTSP |
| Key instruments or direction | Ministerial Regulation 5/2025 on public electronic systems and eligible cloud services | Governor Regulation 7/2025 on permitting and Governor Regulation 20/2024 on building layout |
| Commercial effect | Government-cloud demand is directed toward qualifying registered, auditable third-party providers | Covered building applications follow spatial-conformity review and environmental approval |
| Current policy attractiveness | Medium | Medium |
| Future direction of policy attractiveness | No change | No change |
| Source: Mordor Intelligence | ||
National attractiveness is Medium with No change because registration and auditability define supplier eligibility, and the existing public-cloud transitions implement those same conditions. Pre-existing public operators’ one-year registration period from March 25, 2025, ended in March 2026, while third-party-cloud transitions fall due within a year of the ministry’s provider list or after existing contracts end. Jakarta Governor Regulation 5/2026 on Energy and Water Efficiency in Buildings, effective February 5, 2026, sets annual reporting and warnings for mandatory classes, including offices and commercial buildings, and recommends efficiency for other buildings. Jakarta’s Medium rating and No change reflect continuity in the covered permit sequence, with the efficiency rule’s reporting burden dependent on the facility’s building classification.
Value Chain Stages
The value chain compares power supply, cooling systems, and colocation operations by their supplier earnings and delivery constraints. Upstream suppliers capture value through enabling infrastructure contracts, while the operator’s commercial product is capacity that customers can use once those systems work together. The distinction matters for AI-oriented facilities because a supplier appointment or power commitment can advance development without itself producing operating capacity.
Value Chain Analysis Table of Indonesia Data Center Market
| Primary activity | Key participants | Value capture | Bottleneck | Resilience response |
|---|---|---|---|---|
| Electricity supply | Electricity suppliers such as PLN Batam | Electricity-supply charges | Aligning available power with facility commissioning | Tie power-delivery milestones to staged capacity releases |
| Cooling-system provision | Cooling-solution providers such as LG Electronics | Cooling-solution supply contracts | Matching thermal-system readiness to the intended computing configuration | Coordinate cooling specification and commissioning with deployment phases |
| Colocation operation | Colocation operators such as PT DCI Indonesia | Colocation service revenue | Combining powered space, cooling, and operational readiness into a usable service | Release capacity after integrated facility-readiness checks |
| Source: Mordor Intelligence | ||||
These stages expose suppliers to different delivery milestones, so an upstream agreement and an operating service represent different commercial achievements. Coordinating power and thermal-system readiness around the same capacity release can reduce the risk of completed components waiting for another enabling system. For an AI-oriented operator, that coordination determines when infrastructure spending can begin supporting receipts from customer capacity services.
Competitive Landscape
The competitive field combines domestic facility operators PT Telkom Data Ekosistem (NeutraDC) and PT DCI Indonesia with international cloud and colocation providers. DCI reported in April 2026 that JK6 was fully operational and serving a major global cloud provider. Alibaba Cloud supplies a Jakarta public-cloud region, while NTT DATA, Inc. operates Jakarta 2 Annex with 12 MW of critical IT load and more than 5,800 square meters of IT space in Central Jakarta. DCI reported total capacity of 119 MW across 3 locations at the June 2025 JK6 launch. These facility operators supply physical capacity, while Alibaba Cloud and Amazon Web Services, Inc. provide public-cloud and private connectivity services, respectively.
AWS expanded 100 Gbps dedicated connections at its Direct Connect location inside NTT Jakarta 2 near Jakarta on June 26, 2025. The service provides private network access to all public AWS Regions outside China, as well as AWS GovCloud Regions and Local Zones, from customers’ data centers, offices, or colocation environments. That configuration gives facility users a way to combine local infrastructure with geographically distributed cloud services while keeping the network connection private. For facility operators, hosting connectivity services can broaden a site’s commercial role from supplying physical capacity to acting as a cloud-access location, creating differentiation beyond additional floor space.
On June 6, 2025, GoTo Group and Alibaba Cloud announced GoTo Financial’s completed infrastructure migration to Alibaba Cloud data centers in Jakarta, with all data held within Indonesia.[3] The companies described the migration as supporting Indonesia’s data-sovereignty goals, giving Alibaba Cloud a completed financial-services deployment for in-country application hosting. For government agencies and designated institutions, third-party cloud-provider eligibility also depends on ministry registration and auditability. A challenger seeking comparable financial-services workloads would need to demonstrate that its infrastructure can support the customer’s applications within the required location. A completed private-sector migration can establish deployment experience, while access to public-sector cloud work requires the separate provider qualifications.
Indonesia Data Center Industry Leaders
-
PT Telkom Data Ekosistem (NeutraDC)
-
PT DCI Indonesia
-
Alibaba Cloud
-
NTT DATA, Inc.
-
Amazon Web Services, Inc.
- *Disclaimer: Major Players sorted in no particular order
Indonesia Data Center Market Companies Covered in this Report
- PT Telkom Data Ekosistem (NeutraDC)
- PT DCI Indonesia
- Amazon Web Services, Inc.
- Alibaba Cloud
- K2 Data Centers-Sinar Mas Land
- PT Indosat Tbk (Big Data Exchange (BDx))
- Biznet Data Center
- Space DC Pte Ltd
- Digital Realty Bersama (BDDC)
- Princeton Digital Group
- Tencent Cloud
- Digital Edge (Singapore) Holdings Pte. Ltd. (Indonet)
- Google LLC
- MettaDC
- NTT DATA, Inc.
Recent Industry Developments in Indonesia Data Center Market
- Oct 2026: Princeton Digital Group signed an agreement to sell its Indonesian enterprise data center business, comprising 5 operating facilities across Greater Jakarta, Bandung, Surabaya, and Pekanbaru, to PT SMPlus Digital Investama. The transaction was subject to customary closing conditions.
- Sep 2026: The Jakarta Post reported that West Java Governor Dedi Mulyadi temporarily halted construction of BDx’s data center in Jatiluhur because environmental and building permits had not been issued.
- Aug 2026: PT Telkom Data Ekosistem (NeutraDC) signed a memorandum of understanding with PLN on power readiness for a planned Cikarang data center expansion of up to 200 MW.
Scope and Methodology
Segmentation Overview
By Data Center Size
| Large |
| Massive |
| Medium |
| Mega |
| Small |
By Tier Standard
| Tier 1 and 2 |
| Tier 3 |
| Tier 4 |
By Data Center Type
| Hyperscale / Self-Built | ||
| Enterprise / Edge | ||
| Colocation | Non-Utilized | |
| Utilized | Retail Colocation | |
| Wholesale Colocation | ||
By End User Industry
| BFSI |
| IT and ITES |
| E-Commerce |
| Government |
| Manufacturing |
| Media and Entertainment |
| Telecom |
| Other End Users |
By Hotspot
| Jakarta |
| Batam |
| Rest of Indonesia |
| By Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| By Tier Standard | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| By Data Center Type | Hyperscale / Self-Built | ||
| Enterprise / Edge | |||
| Colocation | Non-Utilized | ||
| Utilized | Retail Colocation | ||
| Wholesale Colocation | |||
| By End User Industry | BFSI | ||
| IT and ITES | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media and Entertainment | |||
| Telecom | |||
| Other End Users | |||
| By Hotspot | Jakarta | ||
| Batam | |||
| Rest of Indonesia | |||
Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
