Indonesia’s data center market is growing rapidly, to put it mildly. In terms of power capacity, the Jakarta, Indonesia data center market currently stands at ~100 megawatts, with a further 150+ megawatts under construction. As such, over the next 2 to 3 years, the data center market in Jakarta, Indonesia will more than double, reaching 250+ megawatts of operational power capacity.

Indonesia Data Center Market – Supply and Demand

Multiple customer types are fueling Indonesia’s data center demand, including financial services, hyperscalers, telecommunications operators, and government organizations. Within hyperscalers, the major cloud service providers (CSPs) – both from the United States and China – are driving a significant need for new hyperscale facilities from multi-tenant data center (MTDC) operators.

Cloud Service Providers (CSPs)

Particularly, the following cloud service providers (CSPs) have existing deployments or are opening new cloud regions in Jakarta, Indonesia:

  • Amazon Web Services (AWS): Asia Pacific (Jakarta) cloud region, known as ap-southeast-3, has 3 availability zones and was launched in 2021
  • Microsoft Azure: Indonesia Central (Jakarta) cloud region will have 3 availability zones and will support companies such as Bukalapak, Pertamina, and the Ministry of Agriculture, which utilize Microsoft’s cloud services
  • Google Cloud: Jakarta cloud region, known as asia-southeast2, has 3 availability zones and was launched in 2020
  • Alibaba Cloud: Indonesia (Jakarta) cloud region, known as ap-southeast-5, has 3 availability zones and was launched in 2018
  • Tencent Cloud: Southeast Asia (Jakarta) cloud region, known as ap-jakarta, has 1 availability zone and was launched in 2021

Multi-Tenant Data Center (MTDC) Operators

Multi-tenant data center (MTDC) operators are seeking to capitalize on Indonesia’s data center market growth, with the following large-scale development projects ongoing:

  • DCI Indonesia: opened a 15-megawatt data center, known as JK5, in Cibitung, Bekasi. Notably, DCI has a partnership with Equinix (NASDAQ: EQIX)
  • EdgeConneX: acquired GTN Data Center in Indonesia, which operates one 2-megawatt data center located in Bekasi Cikarang, part of greater Jakarta. In the short-term, EdgeConneX has the ability to scale this facility to 4 megawatts, while long-term, EdgeConneX will build-out a hyperscale data center campus supporting up to 90 megawatts of power capacity
  • NTT Global Data Centers: launched its four-story Jakarta 3 data center located in Bekasi, which has 15.2 megawatts of critical IT load and has the ability to grow to 45 megawatts
  • Pure Data Centres / LOGOS: building a hyperscale data center with 20 megawatts of power capacity across 215k sqft (20k sqm) in Jakarta, Indonesia
  • Princeton Digital Group (PDG): developing a 22-megawatt, 257k sqft (23.9k sqm) data center in Cibitung, Jakarta, known as JC2, and is committing $150m in investment. In turn, Princeton Digital is expanding its Cibitung campus to a total of 35 megawatts, including its existing 13-megawatt Jakarta Cibitung 1 (JC1) facility
  • ST Telemedia Global Data Centres (STT GDC): development of multiple buildings in Bekasi which will support up to 72 megawatts of power capacity

Other notable companies active in Indonesia’s data center market include GDS Holdings (NASDAQ: GDS), Stonepeak’s Digital Edge and Gaw Capital’s Data Center First.

Additionally, Digital Realty (NYSE: DLR) is in the process of establishing a presence in Indonesia via its Singapore subsidiary Digital Indonesia Holding Pte. Ltd. and local entity, PT Digital Jakarta One, an Indonesian limited liability company.

Big Data Exchange (BDx)

Most recently, in May 2022, Big Data Exchange (BDx), a carrier-neutral data center operator in Asia-Pacific, which is owned by I Squared Capital, announced an expansion into Indonesia through a joint venture with Indosat Ooredoo Hutchison and Lintasarta at an enterprise value of $300m.

As a result of this transaction, Big Data Exchange (BDx), Indosat Ooredoo Hutchison, and Lintasarta will develop new data centers and cloud-focused operations in Indonesia through SMT (PT Starone Mitra Telekomunikasi), a subsidiary of Indosat Ooredoo Hutchison. Finally, for additional details on Indosat Ooredoo’s existing data centers in Jakarta, Indonesia see Dgtl Infra’s prior analysis here.

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