Jakarta, INTI - Indonesia is reinforcing its position as one of Southeast Asia’s fastest-growing data center markets, driven by accelerated digitalization, rising hyperscaler investments, and a strong development pipeline.
The outlook was highlighted by Pritesh Swamy, Head of Data Centre, Research & Advisory, Asia Pacific at Cushman & Wakefield, in the firm's latest research.
According to the report, Indonesia currently has 468 MW of operational data center capacity, with an additional 1,957 MW expected to come online by 2030. This expansion places Indonesia among the fastest-growing data center markets across the Asia-Pacific region.
Over the long term, the country's growth prospects are further supported by approximately 4.5 GW of secured land bank capacity, providing a solid foundation for continued data center expansion.
Cloud Adoption and AI Fuel Market Expansion
Swamy noted that Indonesia's data center market continues to benefit from increasing cloud adoption, rapid digital transformation across industries, growing data consumption, rising demand for artificial intelligence (AI) and high-density computing, as well as continued expansion by global hyperscalers and enterprise occupiers.
These developments are generating sustained demand for digital infrastructure while reinforcing Indonesia's role as an increasingly important data center market in the Asia-Pacific region.
Investment Momentum Accelerates Industry Growth
The market's strong momentum is also reflected in the investments and financing commitments announced throughout the first half of 2026.
Companies including Princeton Digital Group (PDG), Digital Edge, ST Telemedia Global Data Centres (STT GDC), DCI Indonesia, Racks Central, and Firmus Technologies have unveiled new development projects, financing facilities, and expansion plans across the Greater Jakarta area (Jabodetabek) and Batam.
Jabodetabek continues to attract the majority of hyperscale data center developments and investments, while Batam is rapidly emerging as a strategic destination for artificial intelligence infrastructure and high-performance computing (HPC).
Indonesia's data center market is entering a new phase of growth, where the convergence of real estate, digital infrastructure, and capital investment is creating significant opportunities.
While Jabodetabek remains the country's primary hub for enterprise and hyperscale cloud data centers, Batam is increasingly establishing itself as an AI hub for organizations seeking scalable, resilient, and future-ready digital infrastructure.
"Success in this dynamic market will increasingly depend on securing the right locations, ensuring adequate power availability, delivering robust connectivity, and implementing sustainable development strategies that meet customer requirements while supporting long-term growth," Swamy said.
Conclusion
Supported by strong investment momentum, expanding cloud adoption, and growing AI-driven infrastructure demand, Indonesia is well positioned to strengthen its role as one of the Asia-Pacific region's leading data center markets. With Jabodetabek and Batam continuing to attract major development projects, the country's digital infrastructure ecosystem is expected to play an increasingly strategic role in supporting long-term economic and technological growth.
Read more: Indonesia Enters a Rapid Data Center Growth Phase as Capacity Set to Increase by 1,957 MW by 2030