JLL: Land demand for data centre development in Indonesia continues to rise
Around 80 percent of industrial land demand covered by JLL research currently comes from the data centre sector. The need for land for data centre development in Indonesia continues to increase in line with the rapid growth of data usage and artificial intelligence (AI).
Country Head and Head of Logistics & Industrial JLL Indonesia Farazia Basarah said around 80 percent of industrial land demand within JLL’s research scope currently comes from the data centre sector.
“Two to three years ago they might have requested around 5 hectares of land, but currently the requirements we receive start from a minimum of 10 hectares up to 30 hectares for a single data centre,” Farazia said during a media briefing in Jakarta on Tuesday.
According to her, the increase in land requirements needs to be matched by infrastructure readiness, particularly electricity and clean water, as well as land availability.
Electricity needs for each data centre project are also growing larger. Farazia said a single data centre can now require around 100 megawatts (MW) to 200 MW of power supply.
She assessed that these needs are becoming more challenging because data centre demand, particularly related to AI, is growing very rapidly.
“Per quarter it is very large when viewed from AI, the growth of AI, and perhaps one AI application has also become increasingly sophisticated today. So that also has an impact on the growth of data centres for AI,” Farazia said.
Based on JLL Indonesia research, operational data centre capacity has reached around 450 MW. Occupancy rates stand at around 70 percent in the Jakarta CBD and surrounding areas, and around 80 percent in the Cikarang, Karawang, and eastern Jakarta areas.
Farazia said the growth in data centre demand makes infrastructure readiness one of the important factors in developing the industry in Indonesia.
Besides electricity, she said developers also need to ensure the availability of clean water and adequate land to accommodate the needs of increasingly larger data centre facilities.
The government continues to encourage data centre development to support digital economic growth.
Coordinating Minister for Economic Affairs Airlangga Hartarto assessed that Indonesia has several advantages for developing the industry, including land availability, competitive energy prices, and diverse domestic energy sources such as geothermal, solar, and hydropower.
The government is also preparing supporting infrastructure to ensure reliable energy availability for data centre development across various regions of Indonesia.
In line with this, data centre development is seen as a promising investment opportunity.
The Investment Coordinating Board (BKPM), citing Mordor Intelligence, said the value of Indonesia’s data centre market reached around USD 1.44 billion in 2025 and is estimated to increase to USD 1.83 billion in 2026.
The value is projected to continue growing to USD 3.48 billion by 2031, with a compound annual growth rate (CAGR) of 13.71 percent.