Indonesia prepares plan to expand data centres to eastern regions

Director General of Digital Infrastructure at the Ministry of Communication and Digital Affairs Wayan Toni Supriyanto said the plan aims to expand data center development beyond western Indonesia.

“We are preparing a master plan for private data centers to ensure they are developed not only in the western region but also in the eastern regions,” he said on Wednesday.

According to market research firm Mordor Intelligence, Indonesia’s data center industry is projected to grow to US$1.83 billion by 2026 and generate revenues of up to US$3.48 billion by 2031.

Currently, most data center operations are concentrated in Jakarta, supported by extensive fiber optic networks and its role as a landing point for submarine cables.

Batam has also emerged as a key hub due to its proximity to Singapore.

Indonesia’s vast archipelagic geography, with more than 17,000 islands based on data from the Geospatial Information Agency (BIG), offers significant potential for broader infrastructure development.

Director of Digital Infrastructure Strategy and Policy Denny Setiawan said the ministry is coordinating with other agencies to prepare data centers as digital infrastructure.

He added that the ministry is identifying potential locations, particularly those with access to alternative energy sources, to support data center operations.

A national roadmap for the data center industry is also being prepared to maintain data sovereignty while opening investment opportunities.

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Translator: Livia Kristianti, Resinta Sulistiyandari