Jakarta, INTI - Research by CGS International Sekuritas Indonesia (CGSI) suggests that Indonesia has strong potential to become a major growth hub for artificial intelligence (AI) infrastructure in Southeast Asia, as demand for computing power and data centers continues to rise. The availability of electricity and land is expected to play a critical role in supporting the sector’s expansion.
CGSI reported that Indonesia’s imports of products used as a proxy for AI activity reached approximately US$2.5 billion in 2025, representing a 200% year-on-year increase. The research indicates that demand for AI infrastructure is currently accelerating faster than the development of supporting infrastructure.
According to CGSI, Indonesia’s data center capacity is expected to nearly triple to 1.7 gigawatts (GW) by the end of 2026, up from approximately 650 megawatts (MW) in August 2026, based on data from the Indonesian Data Centre Providers Association (IDPRO).
Between 2018 and August 2026, Indonesia attracted approximately US$15 billion in AI- and data center-related investment commitments. CGSI said the investments have come from major global technology companies, including approximately US$5 billion from Amazon Web Services and US$1.7 billion from Microsoft.
“Indonesia’s AI opportunity is not simply a semiconductor story. It is increasingly about infrastructure, electricity, connectivity, and enterprise adoption,” wrote CGSI analysts Bob Setiadi, Rut Yesika Simak, and Elizabeth Noviana.
AI Growth Driven by Infrastructure Readiness
In its SEA’s Next Major AI Infrastructure Markets report published on August 24, 2026, CGSI emphasized that accelerating AI demand requires strong supporting infrastructure, particularly reliable electricity and connectivity.
The research uses imports associated with AI activity as an indicator of increasing demand for computing capacity and data center infrastructure. According to the analysts, the trend reflects the growing need to develop the physical infrastructure required to support the expansion of AI applications and services.
CGSI also highlighted several major regional expansion plans that could further strengthen Indonesia’s position in the Southeast Asian AI infrastructure market.
Zankore, a joint venture involving Indosat Ooredoo Group, Nokia, and NVIDIA, has announced plans to develop up to 1 GW of AI capacity across Southeast Asia. Its first phase in Indonesia is expected to provide 200 MW of capacity and is targeted to begin operations in the first half of 2027.
Meanwhile, CoreWeave plans to add 360 MW of capacity through three data center facilities in Indonesia, with operations scheduled to begin in 2028.
Indosat and Telkom Strengthen Data Center Positions
CGSI identified PT Indosat Tbk (ISAT) as one of the companies best positioned to benefit from the expansion of Indonesia’s AI and data center ecosystem. The assessment is supported by Indosat’s scalable infrastructure platform, its commitment to developing the AI NeoCloud business, and its minority stake in BDx Indonesia.
CGSI also noted that PT Telkom Indonesia Tbk (TLKM) had approximately 50 MW of data center capacity in the first half of 2026, with around 33 MW located in Indonesia. An additional 39.5 MW is scheduled to become operational in 2027.
With AI demand accelerating and large-scale investments continuing to enter the market, Indonesia’s combination of land availability, electricity resources, connectivity, and expanding data center capacity could strengthen its position as one of Southeast Asia’s key destinations for AI infrastructure development.
Conclusion
Indonesia is increasingly positioning itself as a strategic destination for AI and data center infrastructure investment in Southeast Asia. With AI-related imports rising sharply, data center capacity expected to expand significantly, and major global technology companies committing billions of dollars to the market, the country has a strong foundation for continued growth. However, sustaining this momentum will depend on expanding reliable power supply, connectivity, land availability, and scalable digital infrastructure. If these supporting factors continue to develop, Indonesia could play a larger role in powering the region’s next wave of AI-driven digital transformation.
Read more: Indonesia’s Data Center Capacity Set for Significant Growth by 2030