Jakarta, INTI - Indonesia’s data center industry is projected to experience significant growth in the coming years. One of the key players, Digital Realty Bersama, estimates that artificial intelligence (AI)-driven data center capacity could double by 2026 from the current average of 500 MW per year.
This rapid expansion is expected to position Indonesia as a major data center hub in Southeast Asia, and potentially across Asia, surpassing Singapore, which has long been recognized as the region’s leading technology hub.
Chief Financial Officer Krishna Worotikan explained that Singapore has limited further data center development due to constraints in power and water supply. In contrast, Indonesia still offers abundant land, energy capacity, and water resources, providing a strong competitive advantage.
He also noted a shift in data storage trends. While many Indonesian companies previously hosted their data in Singapore, space limitations there are now driving both local and global companies to relocate their data infrastructure to Indonesia for regional operations.
Bekasi and Surrounding Areas Become AI Data Center Hub
According to Business and Commercial Director Andha Yudha Permana, areas such as Bekasi, including Cibitung, Cikarang, Deltamas, and East Jakarta, are emerging as key locations for AI data center development.
These areas are favored due to the availability of large land plots, enabling the construction of horizontal data centers capable of handling heavy AI workloads. GPU racks, which can weigh up to two tons, require stronger infrastructure than typical urban data centers can support, making suburban locations more suitable.
Meanwhile, data centers within Jakarta are primarily dedicated to enterprise needs such as banking and financial services, where low latency is critical. AI workloads, on the other hand, can tolerate slightly longer response times, making them more flexible in terms of location.
Potential to Double Growth
Internal data indicates that Indonesia’s AI data center sector is currently growing at around 500 MW annually, with most developments concentrated in Bekasi due to land availability.
Although this figure still trails Johor Bahru, which records growth exceeding 1,000 MW per year, the outlook for Indonesia remains highly optimistic. The sector is expected to potentially double its capacity in the near future, driven by multiple large-scale projects ranging from 150 MW to 200 MW currently planned outside Jakarta.
Overall, this momentum reinforces Indonesia’s rising role as a strategic destination for regional and global data center investments.
Conclusion
Indonesia is rapidly positioning itself as a leading data center hub in the region, driven by strong AI demand, abundant resources, and increasing investment flows. As companies shift from capacity-constrained markets like Singapore, Indonesia’s advantage in land, power, and scalability, particularly in areas like Bekasi, is strengthening its role in the global digital infrastructure landscape.
Read more: From Singapore to Indonesia: A New Era for Data Center Growth in Southeast Asia