Jakarta, INTI - The Indonesia Data Center Provider Organization (IDPRO) considers Jakarta and its surrounding areas to remain the primary hub of Indonesia's data center industry, largely because major data center customers are still concentrated in the capital and its neighboring regions.

IDPRO Chairman Hendra Suryakusuma explained that this concentration is driven by strong digital demand, well-established connectivity, and a mature business ecosystem.

"Most major data center customers, including banks, financial institutions, technology companies, cloud providers, enterprises, and digital service providers, have their business operations and technology infrastructure concentrated in this region," Hendra told Bisnis on Monday, November 9, 2026.

According to Hendra, Jakarta also benefits from a relatively mature telecommunications ecosystem, encompassing internet exchanges, fiber-optic networks, international connectivity, and access to various cloud and network providers.

Based on the latest internet profile survey released by the Indonesian Internet Service Providers Association (APJII), internet penetration in Jakarta reached 92.57%, while its contribution to the national figure stood at 4.29%.

At the macro level, Jakarta's high internet penetration is supported by relatively widespread digital infrastructure and an urban ecosystem in which internet connectivity plays a central role in economic activities, employment, and public services.

"This factor is important because data centers require more than physical facilities. They also need reliable connectivity with low latency," he said.

Data Center Industry Outlook in Jakarta

In terms of capacity, Hendra stated that approximately 55% of Indonesia's installed data center capacity remained concentrated in Jakarta and its surrounding areas, based on an industry study for the first half of 2026.

He noted that this figure represents a market estimate and may vary depending on geographical coverage and calculation methodologies.

"In my view, Jakarta's competitive advantage lies not only in its infrastructure but also in its well-established digital ecosystem," Hendra said.

He believes the growth prospects for data centers in Jakarta and surrounding areas remain strong, primarily driven by cloud computing adoption, enterprise digitalization, artificial intelligence (AI) development, and increasing demand for digital infrastructure.

"The expansion of NTT DATA through its JKT2A facility, with 12 MW of IT capacity, as well as Equinix's planned development of JK1 Phase 2, demonstrates that demand for digital infrastructure in Jakarta continues to grow," Hendra said.

Several data center projects have also emerged in Jakarta throughout 2026.

SM+ Data Centers, through PT Dian Swastatika Sentosa Tbk. (DSSA), has commenced operations at SMX01, with a capacity of 21 MW.

DAMAC Digital is developing JKT01 in the MT Haryono area, with a capacity of 19.2 MW and an investment of approximately Rp2.5 trillion.

Meanwhile, NTT DATA inaugurated JKT2A, which offers 12 MW of capacity.

Equinix has also expanded its Jakarta operations through JK1 in Kuningan Barat, designed as an AI-ready facility with an investment of up to Rp1.2 trillion.

According to Cushman & Wakefield's report for the first half of 2026, operational data center capacity in Jakarta and its surrounding areas was estimated at approximately 356 MW.

In addition, around 395 MW of capacity was under construction, while another 1,304 MW remained in the planning stage.

"This means there is a development pipeline of approximately 1.7 GW across Jakarta and its surrounding areas," Hendra said.

If all these projects are realized, the region's total data center capacity could theoretically exceed 2 GW.

However, Hendra emphasized that this figure does not represent currently available capacity or a guaranteed projection of completion within a specific year.

"The pace of realization will still depend on electricity supply readiness, construction progress, licensing, financing, and confirmed customer demand," he explained.

Hendra added that IDPRO emphasizes the importance of distinguishing between operational data center capacity, facilities under construction, and projects that are still in the planning stage.

Looking ahead, Jakarta is expected to continue contributing a significant share of Indonesia's national data center capacity. However, its overall proportion could gradually decline as investments expand into Batam and other regions.

Nevertheless, Hendra stressed that sustainable industry growth should not be measured solely by announced capacity but also by the amount of infrastructure that is genuinely operational and available for customers.

IDPRO Calls for Greater Data Center Diversification

Hendra acknowledged that the concentration of data centers in Jakarta is supported by strong economic and business considerations. However, excessive concentration in a single geographical area could increase risks to the resilience of Indonesia's national digital infrastructure over the long term.

One major concern is the availability and reliability of electricity supply.

The expansion of hyperscale and AI data centers requires increasingly large amounts of electricity, supported by high levels of reliability and redundancy.

Furthermore, limited land availability and rising property costs in central Jakarta could affect the feasibility of developing large-scale data center facilities.

"This is why we are seeing hyperscale developments expanding into surrounding areas such as Bekasi, Cikarang, and other nearby locations, which offer opportunities for larger data center campuses," Hendra said.

Another important consideration is disaster resilience.

As critical infrastructure, data centers must maintain continuous operations while accounting for potential risks such as flooding, power disruptions, earthquakes, and network failures.

Therefore, resilience cannot rely solely on the reliability of individual facilities. The infrastructure ecosystem also requires geographic redundancy and disaster recovery capabilities across separate locations.

From IDPRO's perspective, Hendra said Indonesia needs a multi-region resilience strategy for data center development to reduce its dependence on a single geographical area.

"We have already discussed this strategy with several relevant ministries," he said.

According to Hendra, Jakarta will remain the country's primary hub, but establishing additional hubs in other regions is essential to strengthen national digital infrastructure resilience while encouraging more balanced investment distribution and economic growth.

Indonesia is expected to gradually develop into a multi-hub data center ecosystem, with each region serving different market requirements based on its connectivity, energy resources, and geographical advantages.

Jakarta and Greater Jakarta are expected to remain the primary centers for enterprise customers, financial services, cloud interconnection, and most domestic digital infrastructure requirements.

Meanwhile, Batam has strategic potential to develop into a regional hyperscale and AI infrastructure hub, particularly due to its proximity to Singapore and access to international connectivity.

IDPRO also sees opportunities to develop regional data center hubs in several other cities.

Surabaya could support the industrial and digital economy requirements of East Java, while Makassar has the potential to serve as a hub for eastern Indonesia. Medan, meanwhile, could accommodate regional digital infrastructure demand across Sumatra.

However, Hendra emphasized that data center development should not be based solely on land availability or regional development objectives.

Projects must be supported by actual customer demand, reliable electricity supply, competitive energy costs, fiber-optic connectivity, regulatory certainty, and a well-prepared supporting industrial ecosystem.

For cities where digital demand remains relatively limited, regional and edge data centers may be more suitable than immediately developing large-scale hyperscale campuses.

For this reason, Hendra explained that IDPRO does not view data center development outside Jakarta as a complete relocation of the industry, but rather as part of a broader diversification and expansion strategy.

Jakarta is expected to retain its position as Indonesia's primary digital infrastructure center. However, future data center industry growth will need to become more geographically distributed, interconnected, and resilient.

IDPRO supports the government's efforts to promote more balanced digital infrastructure development across Indonesia. Nevertheless, these policies must be aligned with energy readiness, connectivity, regulatory certainty, and actual market demand to ensure sustainable investment and operations.

Incentives are also considered necessary to accelerate regional development.

"Ultimately, our goal is not simply to build more data centers across different regions, but to establish a strong, competitive, and resilient national digital infrastructure ecosystem capable of supporting Indonesia's digital economic transformation and AI development," Hendra concluded.

Conclusion

Indonesia's data center industry is entering a new phase of growth, with Jakarta expected to remain its primary hub while investment gradually expands into other regions. IDPRO highlights the importance of developing a multi-hub infrastructure ecosystem supported by reliable energy, strong connectivity, and regional resilience. This diversification will be essential to meeting growing demand for cloud computing, AI, and digital services while strengthening Indonesia's long-term digital competitiveness.

Read more: ITS Expert Highlights Environmental Impact of Water Consumption in AI Data Centers