Indonesia Data Center Power Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Indonesia Data Center Power Market Trends and Insights

Rapid Expansion of Hyperscale and Cloud Facilities

Hyperscale operators have set a radically higher baseline for capacity and density. Tencent’s USD 500 million multi-phase build, BDx’s 500 MW renewable-powered campus, and EdgeConneX’s 120 MW Jakarta project financed through a sustainability-linked loan all illustrate how individual campuses are now specified at 20-30 MW per hall rather than the earlier 5-10 MW format.^{[1]Data Center Dynamics Staff, “BDx Launches Renewable-Powered 500 MW AI Campus,” datacenterdynamics.com} Larger footprints require sophisticated ring-bus switchgear, 2N UPS arrays, and high-voltage intake substations sized beyond 150 MVA, creating immediate pull-through demand for modular power trains, busway PDUs, and lithium-ion battery strings. Investment continues to concentrate in Java-Bali but is beginning to spill over to Batam as operators seek lower natural disaster risk and direct submarine-cable access 

Government Push for Data-Sovereignty Regulations

Government Regulation No. 82 and successor decrees mandate in-country storage for strategic data, prompting global cloud incumbents to acquire land, secure long-term power purchase agreements (PPA), and commit to stringent uptime and security standards.^{[2]Digiserve Editorial Team, “Understanding GR 82/2012 on Electronic Systems Data Localization,” digiserve.co.id} Four national data centers of up to 40 MW each are scheduled for commissioning by 2026, signalling direct public-sector demand for highly redundant electrical systems.^{[3]South China Morning Post, “Indonesia to Build Four State-Owned National Data Centers,” scmp.com} PLN’s obligation to guarantee reliable, clean power for these facilities accelerates procurement of grid-interactive UPS and intelligent switchgear, while also creating additional incentives to co-locate with renewable-generation clusters.

Need to Lower PUE and Power OPEX Through Efficient Designs

Energy-efficiency targets have shifted from nice-to-have to board-level mandates. EDGE DC’s achievement of 100% Renewable Energy Certificates and its installation of StatePoint liquid cooling lowered PUE to sub-1.3 levels, proving that cutting OPEX can justify premium capex on higher-efficiency rectifiers and variable-speed drives. Delta Electronics’ air-assisted liquid cooling shelves delivering 2.5× traditional density demonstrate the direct link between thermal innovation and power-system design. Vendors that can guarantee measurable PUE gains while maintaining Tier III/IV redundancies now command pricing power in the Indonesia data center power market.

PLN “Green-Energy-as-a-Service” PPAs for DCs

PLN’s 8,786 MW renewable portfolio and launch of 21 green-hydrogen plants position the utility to offer bundled clean electricity, certificates, and potentially hydrogen backup solutions under multi-year contracts. Star Energy Geothermal’s planned 102.6 MW capacity illustrates the breadth of zero-carbon sources that data center operators can now tap. Designs must therefore accommodate variable renewable feeds, prompt tighter integration between UPS inverters and micro-grid controllers, and create a new aftermarket for energy-storage systems and fuel-cell gensets.

High Upfront CAPEX for Power Infrastructure

Expanding a hyperscale campus can demand USD 200-300 million in switchgear, UPS, and backup assets before a single server is racked. PT DCI’s recent campus expansion exemplifies the steep outlay curve, while Rolls-Royce Power Systems’ 2024 revenue surge underscores how premium redundancy commands higher prices. Sustainability-linked loans offer relief but only to operators able to evidence carbon-reduction pathways, effectively raising the bar for new entrants.

Grid-Stability Issues Outside Java-Bali

Outside the primary corridor, end-user surveys record outage frequencies 2.6-3.9× higher than utility reports, forcing operators to overspec reserve power and invest in extended-runtime gensets. Remote hubs such as Jayapura or Kupang still lack high-capacity interconnects, making battery-energy-storage systems and micro-grids essential but costly, a constraint that suppresses deployment pace in these regions.

Segment Analysis

By Component: UPS Systems Lead While PDUs Accelerate

UPS Systems captured 28.4% of the Indonesia data center power market share in 2024 thanks to chronic grid volatility and the need for seamless fail-over. Lithium-ion adoption is rising rapidly, aided by declining cell prices and better thermal profiles. Power Distribution Units, though smaller in value today, are posting the fastest 18.4% CAGR as hyperscale users demand outlet-level metering and AI-driven load orchestration. The Indonesia data center power market size for PDUs is projected to exceed USD 180 million by 2030, growing in tandem with high-density rack deployments. Generator sets remain vital outside Java-Bali, but cleaner gas and emerging hydrogen fuels are already displacing diesel in new Tier IV blueprints. Energy-storage systems are evolving from short-duration UPS banks to multi-hour battery arrays supporting renewable integration, reflecting the country’s broader decarbonization agenda.

The service layer—installation, commissioning, and long-term maintenance—accounts for a rising share of total outlay as configurations grow more complex. Socomec’s DELPHYS XM launch demonstrates the pivot toward compact, high-power modules optimized for 2N architectures, reinforcing the premium placed on space-efficient redundancy 

By Data Center Type: Colocation Dominance Faces Hyperscale Challenge

Colocation providers held 53.2% revenue share in 2024, benefiting from enterprises wishing to avoid capex and from multi-tenant architectures that squeeze more utilization out of each kW. Yet hyperscale/cloud service providers are on track for 19.6% CAGR, driven by AI and big-data workloads that justify dedicated campuses. The Indonesia data center power market size attached to hyperscale demand is expected to reach USD 510 million by 2030. EDGE2’s 23 MW renewable-powered hall in Jakarta typifies the specification leap: low-latency, high-density, and 100% green power. Enterprise and edge sites remain relevant for jurisdictional compliance and latency-sensitive applications, especially in secondary cities where broadband penetration is rising.

By Data Center Size: Mega Facilities Drive Infrastructure Evolution

Large data centers (10-40 MW) made up 35.7% of 2024 spend, delivering balanced economics for mixed enterprise and cloud demand. The mega category (>50 MW) is, however, expanding at a 20.1% CAGR toward 2030 as AI training clusters and regional cloud nodes co-locate in consolidated campuses. The Nongsa Digital Park’s planned 221 MW capacity illustrates how the Indonesia data center power market is pivoting to campus-scale builds that exploit economies of scale in substation interconnection and cooling. Prefabricated modules from suppliers such as Delta now allow incremental blocks of 1.7 MW to be deployed in 40-foot containers, reducing build time and de-risking capital staging

Note: Segment shares of all individual segments available upon report purchase

By Tier Level: Tier III Stability Meets Tier IV Innovation

Tier III still commands 50.5% share because it balances 99.982% uptime with manageable redundancy cost. Operators eyeing AI workloads, financial trading, or public-sector mandates are migrating to Tier IV, which is growing 17.6% annually. The Indonesia data center power market size for Tier IV halls is projected to top USD 260 million by 2030, driven by twin-path power architecture and fault-tolerant switchgear. Rolls-Royce mtu kinetic-power systems that provide dynamic UPS without batteries are finding early adopters among Tier IV builders needing ultra-clean power while shrinking floor space 

Geography Analysis

Java-Bali remains the beating heart of the Indonesia data center power market. PLN data show 65.29% of the country’s 45,095.19 MW installed capacity located here, underpinning the bulk of hyperscale and colocation builds. Jakarta alone hosts more than 70% of current live racks, helped by its intersection of terrestrial fiber, multiple submarine cables, and a large enterprise client base. Batam has emerged as the secondary hot-spot: NeutraDC’s planned 51 MW campus and the 221 MW Nongsa Digital Park attest to its appeal as a low-seismic, Singapore-adjacent site with lower land cost and improving grid links.

Surabaya, Bandung, and Pekanbaru illustrate the nascent edge trend. Princeton Digital Group’s expansion into these cities proves that enterprise demand and government digital-service rollouts will push capacity outside Java-Bali in the coming years. Still, grid stability lags; operators often specify extended-autonomy UPS and on-site generation to offset local outage patterns. Eastern islands such as Sulawesi and Papua remain longer-term prospects, constrained by limited transmission infrastructure but rich in untapped renewable resources that could support micro-grid-centric data centers.

Renewable potential increasingly dictates siting decisions. Star Energy’s geothermal assets in West Java and Lampung and PLN’s green hydrogen pilots provide low-carbon electricity options that can help operators hit net-zero commitments without purchasing off-shore certificates. Regions able to combine such resources with dark-fiber availability and seismic stability are likely to attract the next wave of investment, broadening the geographic footprint of the Indonesia data center power market beyond its traditional core.