Indonesia Data Center Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indonesian Data Center Market is segmented by Infrastructure (Electrical Infrastructure (UPS Systems), Mechanical Infrastructure (Racks), General Construction, IT Infrastructure), Tier Type (Tier-I and -II, Tier-III, Tier-IV), and End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare).

Market Snapshot

Indonesia Data Center Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: 13.15 %

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Market Overview

The Indonesian data center market was worth USD 1.67 billion in 2021, and it is predicted to grow to USD 3.43 billion by 2027, with a CAGR of 13.15% from 2022 to 2027. One of the critical sources of growth in the region is the region's increasing internet economy. The SEA region's internet economy is valued at over USD 100 billion, according to SpaceDC's upper management, 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 startup companies and an ever-growing population, leading to a boost in hyperscale data centers.
  • The COVID-19 pandemic has posed additional stress on the overall economy across sectors and highlighted the contribution and potential of the online workplace being facilitated by the data centers. Further, due to the digital economy's growth, the data center boom in the market has led several global vendors to expand in Indonesia and tap on the emerging opportunities in the studied market. For instance, in November 2021, Smartfren announced partnering with 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, which the government of Indonesia is carrying out. It also steers multiple international vendors to focus on the digital economy.
  • According to the report "Digital 2021" by content management service, HootSuite, and social media marketing agency, We Are Social, the number of users of the internet 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 like China's online marketplace beginnings, with a large pool of entrepreneurial sellers providing goods purchased based mainly on social media recommendations. Moreover, the country is Asia's foremost mobile-first nation, with one of the highest mobile-Facebook usage rates, which aggressively promotes data centers' growth.

Scope of the Report

A data center is a facility that companies utilize to equip their critical applications and data. A data center is designed based on a network of storage and computing resources that allow the transfer of shared applications and data. The principal elements of a data center design include routers, firewalls, storage systems, switches, servers, and application delivery controllers.​

The Indonesian Data Center Market is segmented by Infrastructure​ (Electrical Infrastructure​ (UPS Systems), Mechanical Infrastructure (Racks)​, General Construction, IT Infrastructure), Tier Type (Tier-I and -II, Tier-III, Tier-IV), and End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare).

By Infrastructure
Electrical Infrastructure
UPS Systems
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems and Other Mechanical Infrastructure
General Construction
IT Infrastructure
By Tier Type
Tier-I and -II
By End User
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Other End Users

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Key Market Trends

Colocation Data Service is Expected to Dominate the Market

  • The e-commerce market in Indonesia has been growing for the past few years. This increasing market size is mainly driven by increased internet access and usage. According to the Indonesian Internet Service Providers Association's 2020 report, internet users increased to 196 million, or around 73.7% of the total population.
  • Indonesia's data center services income is growing due to increased demand for colocation from worldwide cloud service providers. The Indonesian data center market is regarded as one of the world's most primitive data center markets. Because of the increased migration of OTT participants in Indonesia, increased IT spending, and the deployment of 5G, the data center industry is predicted to rise exponentially.
  • The e-commerce growth helped the merchants operating in the country during the COVID-19 pandemic, indicating its importance to the Indonesian economy. The e-Conomy SEA 2021 report outlined that 28% of merchants believed they would not have survived COVID-19 without selling on digital platforms. The increasing dependency on e-commerce is increasing the need for data centers, driving the colocation sectors of the data center ecosystem.
  • The colocation provider will offer the server the appropriate bandwidth, IP, and power. Colocation hosting allows a small firm to benefit from the advantages of a large IT department without the expensive cost of setup. According to the Jakarta Post, all companies are not ready to shift to the public cloud in the region. They wish to have complete control of their data without someone else's possession, due to which colocation is still big despite strong interest businesses to adopt cloud services.
  • In Indonesia, Jakarta has the maximum number of data center activities. For instance, in April 2021, Tencent Cloud launched its first data center in Indonesia, emphasizing its commitment to addressing the growing business needs of the country. Located in Jakarta's central business district, the data center boasts two utility power lines, 2 N redundant transformers, and N+1 redundant diesel generator with a capacity to support up to 72 hours at full load.
Indonesia Data Center Market

IT and Telecommunications is Expected to Hold a Major Market Share

  • The fast development of the information technology sector, combined with driving elements such as mass consumerism, urbanization, increased mobile usage, and a tech-hungry youthful population, has a favorable impact on Indonesia's economic growth. It will massively increase the number of data center facilities in the country, allowing the government to meet the growing demand during the projection period.
  • In November 2021, Smartfren, an Indonesian telco, and G42, a UAE technology corporation, announced their plans to build a 1,000MW data center in Indonesia. The two corporations signed a document memorandum of understanding (MoU) for the project. Smartfren revealed that the collaboration would result in creating data centers in the country and preserving the national data sovereignty, which the Indonesian government is carrying out. Interests of such telecom giants and their up-and-coming projects in Telecom and IT are contributing significantly to impacting the industry.
  • The country's telecommunications sector is one of the world's fastest-growing, owing to increased fixed and mobile broadband connections. The key drivers of growth in the telecoms sector include increased affordability, extended coverage, service improvements, higher data usage, and smartphone adoption. Indonesia continues to invest heavily in capital expenditure to expand its fiber-optic network and 4G coverage. The country has the third-highest number of internet users in Asia.
  • Further, the trend of the IT industry's agile and DevOps operational frameworks is increasing the need for more efficient data storage solutions. Hence, it stresses the need for the data center construction market around the globe. The hyperscale and edge data centers in the IT domain are expected to witness a boom due to increased demand for advanced facilities to manage the data traffic worldwide. For instance, in February 2022, PT Aesler Group International Tbk (RONY) signed a cooperation agreement with Huawei Digital Power to construct a data center. Aesler Data Center will be built in a series of Eco Green-interconnected data center chains throughout Indonesia, known as AESLER-GREENIX, with a total capacity of 88 megawatts (MW), across several locations.
Indonesia Data Center Market

Competitive Landscape

Both prominent global vendors and regional companies compete in the Indonesian data center market. Cisco, Dell, HP, and Pure Storage are just a few of the leading solution providers in the market. Vendors are scaling up their capabilities to maintain and gain new clients due to the prospects presented by 5G adoption and the predicted rise in data traffic. Overall, the competitive competition between the players is expected to stay high over the forecast period.

  • November 2021- Smartfren signed a memorandum of understanding (MoU) with Group 42 (G42), an Abu Dhabi-based artificial intelligence and cloud computing business. PT Amara Padma Sehati (APS) will be one of the local partners with capabilities in the business and technological ecosystems to host a 1,000-Megawatt (MW) data center in Indonesia.
  • August 2021 - Princeton Digital Group (PDG) unveiled its plans for greenfield development in Indonesia with a total investment value of USD 150 million. The new 22MW data center, Jakarta Cibitung 2 (JC2), is expected to be constructed within the same 19,550 sq m campus that houses PDG’s existing data center JC1. When completed, the expanded campus aims to offer 35MW of capacity for serving domestic Internet companies, global cloud companies, and enterprises. JC2 is scheduled to be ready for service by Q4 2022.

Recent Developments

  • March 2022 - Lintasarta signed an agreement with PT Bank Pembangunan Daerah Sumatera Utara, commonly known as Bank Sumut, to develop and strengthen its digital bank core technology. This collaboration is anticipated to cater to Bank Sumut, especially in managing the infrastructure, mechanisms, and business processes, and supporting the operations and services for customers.
  • September 2021 - NTT unveiled its plan to expand its global data center footprint by 20% to build a connected future that is anticipated to benefit enterprise clients and hyperscalers worldwide. The projects in India and Indonesia are expected to contribute to the rapid expansion.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Intensity of Competitive Rivalry

      5. 4.2.5 Threat of Substitutes

    3. 4.3 Key Stakeholder Analysis

      1. 4.3.1 (Commentary on the Role Played by IT Infrastructure Providers, Data Center Construction Contractors and Sub-contractors and Support Infrastructure Providers in the Country

    4. 4.4 Major ICT Indicators Contributing to Growth of Data Centers in Indonesia

    5. 4.5 Key Indonesia Data Center Construction Statistics

      1. 4.5.1 Number of Data Centers in Indonesia

      2. 4.5.2 Estimates of Energy Use above 10 kW by Data Centers in Indonesia under Low-growth Scenario

      3. 4.5.3 Estimates of Energy Use above 10 kW by Data Centers in Indonesia under High-growth Scenario

      4. 4.5.4 Comparative Analysis of Critical Megawatt of Data Center in Selected Southeast Asian Countries (Singapore, Indonesia, Malaysia, Thailand, the Philippines, and Vietnam)

      5. 4.5.5 Comparative Analysis of Data Center Rack Space in Selected Southeast Asia Countries (Singapore, Indonesia, Malaysia, Thailand, the Philippines, and Vietnam)


    1. 5.1 Market Drivers

      1. 5.1.1 Growing E-commerce Market Leading to the Adoption of Colocation Data Centers

      2. 5.1.2 Established Mobile-First Landscape Since the Recent Past

    2. 5.2 Market Challenges

      1. 5.2.1 Shortage of Skilled Professionals Presenting a Challenge for Several Contractors

    3. 5.3 Market Opportunities

      1. 5.3.1 Improvement of Internet Network Across Indonesia (Through Projects, such as Palapa Ring)


    1. 6.1 (Discussion on Supply Chain Related issues, Steps taken by Vendors to Mitigate the Impact of the Pandemic, Expectation of Vendors in Post-pandemic Era, Impact of Pandemic Across Various End-user Industries)


    1. 7.1 Market Overview

    2. 7.2 Indonesia Data Center Services By Type (Only Qualitative Analysis to be Provided for the Section)

      1. 7.2.1 Managed Hosting Service

      2. 7.2.2 Colocation


    1. 8.1 By Infrastructure

      1. 8.1.1 Electrical Infrastructure

        1. UPS Systems

        2. Other Electrical Infrastructure

      2. 8.1.2 Mechanical Infrastructure

        1. Racks

        2. Cooling Systems and Other Mechanical Infrastructure

      3. 8.1.3 General Construction

      4. 8.1.4 IT Infrastructure

    2. 8.2 By Tier Type

      1. 8.2.1 Tier-I and -II

      2. 8.2.2 Tier-III

      3. 8.2.3 Tier-IV

    3. 8.3 By End User

      1. 8.3.1 Banking, Financial Services, and Insurance

      2. 8.3.2 IT and Telecommunications

      3. 8.3.3 Government and Defense

      4. 8.3.4 Healthcare

      5. 8.3.5 Other End Users


    1. 9.1 Company Profiles*

      1. 9.1.1 PT DCI Indonesia (DCI)

      2. 9.1.2 Telkomsigma

      3. 9.1.3 NTT Communications Corporation

      4. 9.1.4 XL Axiata Tbk PT (Princeton Digital Group)

      5. 9.1.5 GTN Data Center

      6. 9.1.6 NEX Datacenter

      7. 9.1.7 Lintasarta

      8. 9.1.8 Indosat Tbk PT

      9. 9.1.9 DTPNet

      10. 9.1.10 Nusa Datacenter

      11. 9.1.11 PT Omadata Padma Indonesia

      12. 9.1.12 PT. Faasri Utama Sakti

      13. 9.1.13 JupiterDC

      14. 9.1.14 Biznet Networks

      15. 9.1.15 IDC Indonesia

      16. 9.1.16 Nusantara Data Center

      17. 9.1.17 Space DC Pte Ltd

      18. 9.1.18 Equinix Inc.



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Frequently Asked Questions

The Indonesia Data Center Market market is studied from 2020 - 2027.

The Indonesia Data Center Market is growing at a CAGR of 13.15% over the next 5 years.

NTT Communications Corporation, PT Omadata Padma Indonesia, GTN Data Center, Telkomsigma, PT DCI Indonesia are the major companies operating in Indonesia Data Center Market.

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