Bright Prospects for Data Centre Business in Indonesia

The prospects for the data centre business in Indonesia are increasingly bright. Data centre companies are expanding their computing capacity. However, several challenges remain.

The prospects for the data centre business in Indonesia are predicted to brighten further with the rapid adoption of digital technology, particularly artificial intelligence or AI. Several data centre companies are adding to their computing capacity. However, its development is still overshadowed by various challenges.

Every online shopping click, banking transaction, to video streaming services enjoyed by users are inseparable from the role of data centres. These facilities, located inside concrete buildings with layered security, store and manage vast amounts of data non-stop.

In facilities that house data from e-commerce companies to banking, power outages are strictly forbidden. If the electricity fails, online shopping to bank transfers can be disrupted. Data centres are like the “heart” of economic activities that utilise digital technology.

With data centres, companies do not need to build high-computation facilities that are very expensive to store and process data. Companies simply store them in data centres provided by digital technology companies from both domestic and foreign sources.

One of the data centre companies in Indonesia is Digital Realty Bersama (DRB). DRB is a joint venture between Digital Realty (a global-scale data centre provider) and Bersama Digital Data Centre (a data centre company whose shares are held by Saratoga, Provident, and Macquarie).

Launched in March 2025, DRB has two strategic data centres in Jakarta, namely the CGK10 facility in Daan Mogot and CGK11 in the Cawang area. These data centres are certified Tier 3 and Tier 4, which are international standards with adequate infrastructure, such as reliable electricity.

Andha Yudha Permana, Business and Commercial Director of DRB, said that the rapid adoption of digital services in Indonesia is one of the reasons for DRB’s expansion into Indonesia. For example, a survey by the Indonesian Internet Service Providers Association recorded that internet penetration in the country reached 80.66 per cent.

This means that around 229.4 million Indonesians have been using the internet, whether to access social media, watch video streaming, or utilise banking applications. The massive use of digital technology naturally requires infrastructure such as data centres.

“In the Asia-Pacific map, Indonesia is transforming into a major independent and strategic digital hub, particularly in accommodating large-scale computational workloads amid land and energy limitations in the region,” said Yudha in a written statement to Kompas on Monday (16/3/2026).

With its vast land, large potential for renewable energy, and rapid adoption of digital technology, the data centre business in Indonesia has opportunities to grow. “The prospects for the data centre industry in Indonesia are very bright with exponential growth potential,” stated Yudha.

Moreover, the data centre capacity ratio in Indonesia is low, at around 1 watt per capita. In contrast, data centre capacity in other countries, such as Singapore and Japan, reaches 10-100 watts per capita. This means that the potential to develop the data centre business in the country is still wide open.

This business potential is evident from the growing number of financial companies, banks, and e-commerce that use DRB’s data centre services. He claimed that the server facilities at CGK10 are fully occupied, while the occupancy rate at CGK11 is around 50 per cent.

Seeing the momentum of demand from data centre users, they are preparing to move to the second phase of development at CGK11. This development is projected to significantly increase its computing capacity from the current 6.5 megawatts (MW) to 27 MW.

Yudha did not specify when the second phase development would begin. However, this step is DRB’s commitment to continue providing digital infrastructure with high workloads to support the operational needs of customers in Indonesia.

“We project the next decade as the main acceleration phase (for data centres), where needs will double with the wave of AI, commercialisation of 5G networks, and the maturity of the national digital economy,” stated Yudha.

The widespread adoption of AI in Indonesia is reflected in research by International Business Machines (IBM) in 2025. The multinational information technology company recorded that 85 per cent of 502 business leaders from various sectors surveyed have used AI and felt its benefits.

This expanding AI adoption has also led Equinix, a global digital infrastructure company operating in Indonesia, to increase its server capacity. Since May 2025, Equinix has partnered with PT Astra International Tbk to build the International Business Exchange or JK1 in Jakarta.

Haris Izmee, President Director of Equinix Indonesia, said that the power density or density capacity on cabinets or racks in data centres has increased from the previous 1-2 kilowatts (kW) per rack to 10-30 kW per rack. This increase is to accommodate AI workloads.

“Last year, many companies were still in the experimentation and AI model training stage. Now, it’s time for application implementation or usage. So, data centre needs will certainly rise,” he said. That’s why they will develop the capacity of the JK1 data centre facility.

Currently, JK1 has 550 cabinets with 70 customers in telecommunications, internet service providers, banking, to pharmaceuticals. Although not yet fully occupied, he said, the number of customers is quite good for the first year of operation. The occupancy is also expected to increase.

With air cooling and liquid cooling systems, he assured that JK1 can support medium-level AI-based workloads. “The second phase development (of JK1) is currently underway. We are targeting an addition of 1,100 cabinets. So, there will be a total of 1,600 racks this year,” said Haris.

Haris is optimistic about the data centre business in Indonesia.