Jakarta, INTI - Indonesia’s demand for data center infrastructure is expected to rise as artificial intelligence (AI) continues to advance. However, the country’s existing data center capacity is still considered insufficient to support growing computing and data processing requirements.
Otto Toto Sugiri, President Director of PT DCI Indonesia Tbk (DCII) and a prominent figure in Indonesia’s data center industry, estimates that the country currently has approximately 200 megawatts (MW) of active data center capacity.
According to his calculations, Indonesia requires at least 2.8 gigawatts (GW) of capacity to meet its basic computing needs, even without accounting for the surge in AI adoption.
“Indonesia needs a minimum of 10 to 15 watts per capita to meet its own needs,” Otto said during a discussion at the Indonesia Knowledge Forum (IKF) XV on Tuesday (October 13, 2026).
With a population of approximately 280 million, this translates into an estimated data center capacity requirement of around 2.8 GW. Otto believes that demand could increase by at least fourfold as AI technology develops.
This projected growth is driven by AI applications’ substantially greater computing requirements compared with conventional information searches. Otto cited AI-powered services such as ChatGPT, which require more computing power than traditional searches through Google.
The trend presents both challenges and opportunities for Indonesia’s domestic data center industry. Rising computing demand will increase the need for facilities capable of storing and processing data, supported by reliable electricity supplies and adequate telecommunications networks.
Otto emphasized that digital infrastructure fundamentally relies on two key components: data centers and telecommunications networks. Both must develop in tandem to enable Indonesia to meet its own digital needs.
“Dependence on overseas infrastructure can create additional costs for Indonesia. When data is processed at data centers abroad, traffic must pass through international networks before returning to users in Indonesia,” he explained.
Consequently, developing domestic digital infrastructure is essential to strengthening Indonesia’s digital sovereignty. Otto also stressed the importance of protecting Indonesian citizens’ data to ensure that its use does not compromise privacy.
Expanding Digital Infrastructure and Connectivity Across Indonesia
Despite the growing demand, equitable telecommunications coverage remains a challenge. Otto noted that some parts of Indonesia still lack adequate network access, potentially limiting the adoption of digital technologies, including AI, beyond major economic centers.
Beyond infrastructure, Otto views AI as a technology capable of improving productivity when applied effectively. AI can help people analyze complex data, process information, and accelerate the journey from idea development to implementation.
However, realizing these benefits requires a skilled workforce and effective governance. Companies must prepare employees to use automation and AI to enhance productivity rather than simply adopt the technologies without maximizing their potential.
For the data center industry, AI development therefore represents not only an opportunity to expand capacity but also a growing need for investment in reliable digital infrastructure.
The extent to which Indonesia can capitalize on this opportunity will depend on its ability to expand data center capacity, strengthen telecommunications networks, and build a technology ecosystem capable of supporting domestic computing demand.
Conclusion
Indonesia’s growing AI adoption could drive data center capacity demand to at least four times its current level, highlighting the urgent need for investment in digital infrastructure. DCII President Director Otto Toto Sugiri emphasized the importance of expanding domestic data centers, strengthening telecommunications networks, and protecting data privacy. Building a reliable digital ecosystem and preparing skilled talent will be essential for Indonesia to meet its computing needs and strengthen its digital sovereignty.
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