Jakarta, INTI - Indonesia continues to strengthen its position as one of the fastest-growing data center markets in the Asia-Pacific region. According to Cushman & Wakefield’s APAC Data Centre Investment Landscape 2026 report, pre-leasing activity in Indonesia has increased nearly fivefold compared to the previous year. This growth coincides with the expanding presence of global industry players, including Digital Realty, Equinix, and Keppel Data Centres.
Across Asia-Pacific, demand for data center capacity continues to outpace supply. Over the past year, the region added more than 2,200 MW of new operational capacity, while vacancy rates declined from 11.0% to 10.3%.
Pre-leasing activity across the region increased by 115% year-on-year, with more than 7.8 GW of future capacity already contracted. A similar trend is emerging in Indonesia, where cloud service providers, AI companies, and domestic corporations are increasingly securing capacity in advance, even before facilities begin construction.
These developments have positioned Indonesia among the five largest data center markets in Asia-Pacific in terms of capacity secured through pre-leasing. With nearly 2 GW of capacity in its development pipeline through 2030, Indonesia has considerable room to expand its infrastructure to accommodate growing digital demands.
Indonesia Requires US$17.9 Billion in Data Center Investment by 2030
The rapid expansion of the data center industry will require substantial investment. Indonesia is estimated to need approximately US$17.9 billion in capital expenditure (CapEx) between 2026 and 2030 to meet increasing capacity requirements. This makes Indonesia one of the largest data center funding markets in Asia-Pacific.
Financing activities are also gaining momentum. Several data center financing transactions have been completed in Indonesia, including a US320millionloanfacilityinvolvingBankPermata,BCA,andKBBank,aswellasaUS411 million loan facility backed by DBS and UOB.
The participation of domestic and regional banks indicates that data centers are increasingly being recognized as an attractive infrastructure asset class among investors and financial institutions.
Indonesia’s Digital Population Creates Significant Growth Potential
On the demand side, Indonesia benefits from a large market with substantial room for expansion. Currently, Indonesia has approximately 616,000 people per MW of operational data center capacity, significantly higher than the Asia-Pacific average of around 248,000 people per MW.
This comparison indicates that Indonesia's existing data center capacity remains relatively limited compared to its population size. The gap creates significant opportunities for further capacity development as demand for digital infrastructure continues to increase.
Cloud services, AI adoption, corporate digitalization, and data sovereignty policies are expected to remain the primary drivers of data center demand over the coming years. In line with these trends, Indonesia's colocation services revenue is projected to exceed US$3.4 billion by 2030.
Indonesia Offers Attractive Returns for Data Center Investors
From an investment perspective, the report indicates that Indonesia's capitalization rate (cap rate) stands slightly above 7%, while its unlevered yield-on-cost is estimated at approximately 10%–12%.
These figures are relatively higher than those of several other Asia-Pacific markets, including Malaysia, Japan, Hong Kong, and mainland China, highlighting Indonesia's competitive investment potential.
At the regional level, Asia-Pacific is projected to require approximately 22.7 GW of additional data center capacity by 2030, supported by an estimated US$280 billion in capital expenditure. The rapid expansion of AI and digitalization is expected to serve as the primary driver of this demand.
"Indonesia is strategically positioned to capitalize on data center growth, supported by its large digital population, data sovereignty policies, and increasingly strong international capital inflows. These factors make Indonesia one of the most attractive markets in Asia-Pacific for long-term growth," said Pritesh Swamy, Head of Research & Consulting, Data Centre Group APAC at Cushman & Wakefield, on Wednesday, November 4, 2026.
Conclusion
Indonesia is emerging as a major data center investment destination in Asia-Pacific, driven by rising demand for cloud computing, AI adoption, and digital transformation. With nearly 2 GW of capacity in its development pipeline and an estimated US$17.9 billion in investment requirements through 2030, the country has significant potential to strengthen its digital infrastructure and attract global investors.
Read more: Japanese Company Highlights Why Indonesia Is Becoming More Attractive for Data Center Investments Than Singapore