Digital Infrastructure Acceleration Boosts Data Centre Sector Stock Prospects

The increasing demand for cloud infrastructure, artificial intelligence (AI), and enterprise digitalisation is serving as the primary fuel for the growth of data centre issuers in Indonesia. This trend is creating opportunities for massive capacity expansion while driving the revaluation of stock prices for key players until the end of 2026.

Kafi Ananta, an analyst at BRI Danareksa Sekuritas, noted that the total installed IT capacity of data centres in Indonesia reached approximately 580 megawatts (MW) in the first half of 2026. This figure is projected to surge to 3.5 gigawatts (GW) by 203und, reflecting a Compound Annual Growth Rate (CAGR) of 56.7%.

The main drivers are the high demand for GPU-intensive AI infrastructure and cloud processing. Additionally, capacity constraints in Singapore due to the DC-CFA regime and power restrictions in Johor, Malaysia, are positioning Indonesia as a regional hub for overflow demand.

Among listed companies, PT Telkom Indonesia Tbk (TLKM) operates a data centre business line through NeutraDC. Currently, NeutraDC operates 90.4 MW of live IT capacity and aims to expand to 300 MW by 2030. Its primary facilities are spread across Cikarang, Batam, and Singapore. The Cikarang Campus 1 is designed with a 21.5 MW capacity, while Campus 2 is being prepared to add up to 120 MW. The Batam Campus, with an 18 MW capacity, is targeted to be operational this year, with Gorilla Technology as a primary tenant.

Currently, TLKM is in the process of divesting a 70% stake in NeutraDC, with transaction values ranging between US$1.0 billion and US$1.5 billion. This move aims to attract global operators to strengthen operational capabilities in serving large-scale tenants.

Senior Market Analyst at Miraera Asset Sekuritas, Nafan Aji Gusta, explained that the potential monetisation of NeutraDC is a highly anticipated catalyst for the market. “The primary impact of the NeutraDC divestment is likely to be greater on valuation re-rating and market perception rather than a direct surge in revenue in 2026,” Nafan told Kontan.

Meanwhile, PT Indosat Tbk (ISAT) maintains exposure to the data centre business through two entities. The first is BDx Indonesia, in which ISAT holds a 25% stake. BDx operates 30 MW of capacity across three edge data centre campuses and 72 MW of hyperscale data centre capacity at CGK4 Jatiluhur, with a power commitment from PLN reaching 1.2 GW.

The second entity is Zankore, a joint venture between Neocloud AI and Ooredoo, where ISAT could potentially hold a 30% stake. The first phase of the Zankore AI Factory project, with a 200 MW capacity in Batang, is planned to begin operations in the first half of 2027 and is targeted to expand to 1 GW. Kafi projects that Zankore’s contribution could potentially increase ISAT’s equity value by up to 35%.

Nafan believes that the AI ecosystem strategy could fundamentally change market perception of ISAT, shifting its profile from a mere telecommunications operator to a provider of GPU infrastructure, cloud, edge computing, and AI services. Although Zankore’s revenue contribution in 2026 is expected to be insignificant, developments in partnerships and hyperscaler contracts could serve as a re-rating catalyst. Consequently, ISAT is seen as having significant upside potential, though it remains sensitive to project execution.

PT Dian Swastatika Sentosa Tbk (DSSA) operates 24 edge data centres with a 10 MW capacity through the SM+ brand. DSSA is also developing the SMX01 hyperscale facility in Jakarta through a US$300 million joint venture with LG. This Tier IV standard facility is designed for AI needs using liquid-cooling technology. SMX01 is targeted to be operational in the fourth quarter of 202<0xA0>26, with an initial capacity of 18 MW that can be expanded to 60 MW.

Niko Pandowo, an analyst at Sucor Sekuritas, revealed that DSSA’s transformation into a technology and telecommunications ecosystem expands the group’s Total Addressable Market (TAM) to approximately US$76 billion. This integration is believed to improve earnings quality and generate more stable free cash flow.

Sukarno Alatas, an analyst at Kiwoom Sekuritas Indonesia, added that the differentiation between data centre issuers lies in their strategic focus. “TLKM is more defensive with potential re-rating from NeutraDC monetisation; ISAT could see re-rating from the AI theme, even though Zankore’s contribution to 2026 profits remains limited; DSSA is attractive due to its transformation towards digital infrastructure; whereas DCII has the most aggressive growth, but its valuation is already relatively premium,” said Sukarno.

As the largest pure-play operator, PT DCI Indonesia Tbk (DCII) operates an installed capacity of 132 MW across five locations. Its facilities include H1 Cibitung (73 MW), H2 Karawang (27 MW), E1 Jakarta (19 MW), and E2 Surabaya (9 MW). For the long term, DCII is preparing the Bintan Data Centre Park mega-project with a capacity of up to 1,000 MW on 700 hectares of land. Regarding funding, DCII recently secured a loan facility worth Rp 17 trillion from BCA. However, Atikah warned that DCII shares are traded at a premium valuation with a P/E of 493.7x and relatively thin transaction liquidity.

Among emerging issuers, PT NexAI Digital Infrastruktur Tbk (MGLV) plans to pivot its core business to become a data centre provider. MGLV is preparing to acquire two Nextier assets with a total capacity of 96 MW, namely MettaDC in Cikarang and NGC in Batang. The acquisition and capital expenditure plans are supported by a target rights issue of up to 285.7 million new shares.

Meanwhile, PT Sinergi Inti Andalan Prima Tbk (INET), through its subsidiary, operates the JKT01 facility in the Cyber 1 Building, Jakarta. INET also plans to develop a green data centre area spanning 180 to 200 hectares in Jatiluhur, Purwakarta.