Indonesian Political, Business & Finance News

Data Centre Expansion Provides Boost to Industrial Estates

| | Source: EKONOMI.BISNIS.COM Translated from Indonesian | Business
Data Centre Expansion Provides Boost to Industrial Estates
Image: EKONOMI.BISNIS.COM

The heavy influx of technology sector capital into Indonesia, specifically within the data centre segment, is not only strengthening national digital infrastructure but also acting as a primary driver for the property market, particularly industrial estate development.

Data from the Ministry of Investment/Investment Coordinating Board (BKPM) reveals that investment realisation in the services group, which includes data centre investments, has reached IDR 114 trillion. This represents 11.3% of the total national investment, which reached IDability IDR 1,010 trillion during the first half of 2026.

This flourishing expansion of data centre development has provided a significant boost to industrial estate developers, as land absorption rises alongside the high demand for data centre sites. PT Puradelta Lestari Tbk (DMAS) noted that the proportion of industrial land demand in the Kota Deltamas area is dominated by data centre developers, accounting for 70% of the total 85 hectares of land demand recorded in the first half of 2026.

Tondy Suwanto, Director and Corporate Secretary of Puradelta Lestari, explained that the dominance of the data centre industry is the main driver behind the company’s marketing sales achievements. “In our pipeline, approximately 70% of the 85 hectares of industrial land demand comes from the data centre segment,” Suwanto stated in an information disclosure on Monday (27/07/2026).

Suwanto further explained that demand for data centre development is concentrated within the Greenland International Industrial Center (GIIC) Deltamas. This high demand is supported by the high-tech infrastructure provided by the company, which includes premium electricity supply, reliable redundant fibre optic networks, and looping systems for clean and recycled water processing.

Driven by the booming data centre segment, DMAS revealed it secured marketing sales of IDR 1.15 trillion throughout the first half of 2026. This achievement represents 55% of the company’s total marketing sales target of IDR 2.08 trillion for the full year of 2026. “In the first semester of 2026, the Company’s pre-sales primarily originated from industrial land sales,” said Suwanto.

Regarding land absorption, research from Cushman & Wakefield indicates that Indonesia currently has an operational capacity of 468MW, with an additional future capacity of 1,957MW projected to come online by 2030.

Arief Rahardjo, Director of Strategic Consulting at Cushman & Wakefield Indonesia, explained that this situation will significantly impact the dynamics of the commercial property market, particularly land absorption in industrial estates within the Greater Jakarta (Jabodetabek) area.

“While Jabodetabek remains the primary hub for data centre demand in Indonesia, regions such as Batam are strategically positioned to meet growing needs alongside the rapid expansion of digital infrastructure in Indonesia,” he noted during a presentation titled ‘Powering Indonesia’s Future: Where Real Estate Meets Digital Infrastructure’ on Tuesday (28/07/2026).

Rahardjo noted that total industrial land sales reached 106 hectares by mid-year, with net absorption in the first half of 2026 standing at 37.91 hectares. Land sales figures are projected to surge, potentially exceeding 250 hectares by the end of 2026.

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