Indonesia's Data Centre Capacity Projected to Surge Until 2030
Indonesia has the potential to become one of the growth hubs for artificial intelligence (AI) and data centre infrastructure in Southeast Asia, following a surge in cloud computing demand. According to research from BRI Danareksa Sekuritas, national data centre IT capacity, recorded at 580 megawatts (MW) in the first half of 2026, is projected to skyrocket to 3.5 gigawatts (GW) by 2030.
This shift in the regional data centre industry landscape is occurring due to limited expansion space in Singapore and tightening electricity and water supplies in Johor, Malaysia. These conditions are prompting global investors to redirect digital infrastructure investments to Indonesia, which offers abundant land availability and competitive electricity tariffs.
Research by CGS International Sekuritas Indonesia (CGSI) notes that imports of products proxying AI activity in Indonesia are expected to reach USD 2.5 billion in 2025, representing a 200 per cent year-on-year increase. Furthermore, investment commitments related to AI and data centres entering Indonesia between 2018 and August 2026 have reached USD 15 billion, including USD 5 billion from Amazon Web Services and USD 1.7 billion from Microsoft.
CGSI analysts Bob Setiadi, Rut Yesika Simak, and Elizabeth Noviana assess that the acceleration of computing demand is currently moving faster than infrastructure development. “The AI opportunity in Indonesia is not merely a story of semiconductors, but rather one of infrastructure, electricity, connectivity, and corporate adoption,” the three analysts wrote in a report titled ‘SEA’s Next Major AI Infrastructure Markets’ on 24 August 2026.
The growth prospects of this sector have prompted several analysts to issue positive recommendations for companies with exposure to the industry. CGSI identifies PT Indosat Tbk (ISAT) as a primary candidate poised to benefit through its NeoCloud AI business and its shareholding in BDx Indonesia. “ISAT is considered the issuer with the most potential to benefit from this opportunity,” the CGSI analysts noted.
BRI Danareksa Sekuritas analyst Kafi Ananta issued a buy recommendation for ISAT shares with a target price of Rp3,430 per share. This valuation is supported by Indosat’s participation in the Zankore project, which is developing the first phase of an AI Factory with a 200 MW capacity in Batang, Central Java.
Meanwhile, Mirae Asset Sekuritas Senior Market Analyst Nafan Aji Gusta recommended an ‘add’ for PT Telkom Indonesia Tbk (TLKM) shares with a target price of Rp3,030 per share. The main catalyst for TLKM is the potential divestment of a 70 per cent stake in its subsidiary, NeutraDC, which is estimated to be worth between USD 1.0 billion and USD 1.5 billion to attract global hyperscaler partners.
On the other hand, Kiwoom Sekuritas Indonesia analyst Sukarno Alatas recommended a buy for PT Dian Swastatika Sentosa Tbk (DSSA) shares with a target price of Rp1,500 per share. DSSA is strengthening its digital infrastructure portfolio through the development of the SMX01 hyperscale facility, involving a US$ 300 million investment in Jakarta, scheduled to begin operations in the fourth quarter of 2026.
CGSI added that this business landscape also benefits supporting supply chains on the Indonesia Stock Exchange, ranging from contractor PT Total Bangun Persada Tbk (TOTL), industrial estate developer PT Puradelta Lestari Tbk (DMAS), submarine cable provider PT XLSmart Telecom Sejahtera Tbk (EXCL), to energy issuer PT Cikarang Listrindo Tbk (POWR).