Indonesia’s data center industry is expanding steadily alongside the increasing demand for digital infrastructure and cloud computing services. Based on data from Data Center Map, Jakarta is the city with the highest number of data centers, totaling 81 units, far surpassing all other regions in the country.

This figure reflects Jakarta’s central role in the digital ecosystem, representing more than half of the 137 data centers currently operating across Indonesia.

Following Jakarta, Batam ranks second with 9 data centers, positioning itself as a significant player in the data infrastructure sector.

Surabaya and Bandung come next, each with 7 units, tying for the third-largest concentration. Denpasar and Bogor follow with 4 data centers each. Makassar has 2 units in operation.

Meanwhile, Medan, Yogyakarta, and Pekanbaru each operate 2 data centers. Although the numbers remain small in comparison to Jakarta, these figures indicate that data center growth is beginning to spread to other major cities.

Total Power Capacity Remains Below National Potential

According to the Indonesia Data Center Provider (IDPRO), the total operated power capacity within the industry is only around 400 Megawatts. This number is seen as underwhelming when measured against the size of Indonesia’s population, digital economy value, and internet penetration.

Indonesia has more than 207 million people connected to the internet. Despite this, the current infrastructure is still not aligned with the country's broader digital needs.

Key Factors Influencing Data Center Growth

Hendra Suryakusuma, Chairman of IDPRO, highlighted several crucial factors influencing the growth of the data center sector in Indonesia. These include:

• “Legal certainty and consistent regulation”
• “Supporting infrastructure”
• “Ease of doing business”
• “Incentives”
• “Competitive labor wages”

These factors are viewed as essential to accelerating data center development and enabling Indonesia to meet its digital infrastructure demands more effectively.

PHOTO: FREEPIK

This article was created with AI assistance.