Jakarta, INTI - Data center capacity in Indonesia is projected to surge significantly, reaching 1.65 gigawatts (GW) by the end of 2026. This figure represents a significant increase compared to the current total installed capacity of 637.24 megawatts.
Hendra Suryakusuma, Chairman of the Indonesia Data Center Provider Organization (IDPRO), stated that this projection reflects the high domestic market demand for server infrastructure.
"So, the total commissioned capacity is already 637.24 megawatts, and the planned pipeline for the end of the year is 1.65 GW. This has been discussed internally, and that's exactly what it is. So, the growth is extraordinary," Hendra said at a Media Masterclass event with Schneider Electric in Jakarta on Wednesday, May 20.
The Fast Pace of Technology Development Increases Data Volume Demands
Hendra explained that this surge in demand is driven by several crucial factors, such as massive internet penetration, the digital transformation of MSMEs, government regulatory policies, and the adoption of artificial intelligence (AI) technology.
According to the data he presented, more than 80 percent of Indonesia's 286 million population now has internet access. This has a direct impact on the increasing volume of data generated, processed, and transmitted annually.
Furthermore, the digitalization of the country's 73 million MSMEs, which are increasingly integrating Point of Sales (POS) systems with payment gateways, is also a major driver of the need for more capable server infrastructure.
Regulation is also a Factor in Infrastructure Construction
Regarding regulations, Hendra highlighted the transition from Government Regulation (PP) No. 82 of 2012 to PP No. 71 of 2019. He explained that the old regulation required public services to locate data centers in Indonesia, but the new regulation provides relaxation for private data.
This situation has led several global companies to choose to build infrastructure in neighboring countries. One example is of ByteDance, which chose to build its first data center in Johor Bahru, Malaysia.
"TikTok has the largest user base in Indonesia, but their AI servers are located in Malaysia, with plans to build them in Thailand as well," he added.
However, the adoption of AI technology is now a major driver for the construction of new facilities domestically. Several major projects have begun to realize the construction of data centers specifically designed for AI, including BW Digital's 120 MW project in Batam and Princeton Digital Group's 120 MW project in Cikarang.
Conclusion
Indonesia's data center capacity is projected to grow rapidly, reaching 1.65 GW by the end of 2026. This surge is driven by high internet penetration, accelerated MSME digitalization, regulatory developments, and the increasing adoption of AI technology, which is driving the need for server infrastructure. IDPRO assessed this growth as significant. Meanwhile, the demand for AI is starting to drive the construction of new facilities in Indonesia, including large-scale data center projects in Batam and Cikarang.
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