Jakarta, INTI - Indonesia is emerging as a potential growth hub for artificial intelligence (AI) and data center infrastructure in Southeast Asia, driven by rapidly rising demand for cloud computing and high-performance computing. Research from BRI Danareksa Sekuritas shows that Indonesia’s national data center IT capacity stood at approximately 580 megawatts (MW) in the first half of 2026 and could increase more than sixfold to 3.5 gigawatts (GW) by 2030.
The regional data center landscape is also shifting as Singapore faces limited room for further expansion, while tighter electricity and water supplies in Johor, Malaysia, are creating additional constraints. These developments are encouraging global investors to redirect digital infrastructure investments toward Indonesia, which offers relatively abundant land and competitive electricity costs.
Research by CGS International Sekuritas Indonesia (CGSI) found that Indonesia’s imports of products used as a proxy for AI-related activity reached US$2.5 billion in 2025, representing a 200% year-on-year increase. Meanwhile, total AI- and data center-related investment commitments entering Indonesia between 2018 and August 2026 have reached approximately US$15 billion, including US$5 billion from Amazon Web Services and US$1.7 billion from Microsoft.
CGSI analysts Bob Setiadi, Rut Yesika Simak, and Elizabeth Noviana said demand for computing infrastructure is currently growing faster than the pace at which new infrastructure can be developed.
“Indonesia’s AI opportunity is not simply a semiconductor story. It is increasingly about infrastructure, electricity, connectivity, and enterprise adoption,” the analysts wrote in their SEA’s Next Major AI Infrastructure Markets report published on August 24, 2026.
Data Center Expansion Creates New Investment Opportunities
The sector’s growth outlook has prompted analysts to take a positive view of publicly listed companies with exposure to AI and digital infrastructure.
CGSI identified PT Indosat Tbk (ISAT) as one of the companies best positioned to benefit from the trend, particularly through its AI NeoCloud business and stake in BDx Indonesia.
“ISAT is considered the listed company with the strongest potential to benefit from this opportunity,” the CGSI analysts wrote.
BRI Danareksa Sekuritas analyst Kafi Ananta issued a buy recommendation for ISAT, with a target price of IDR 3,430 per share. The recommendation is supported by Indosat’s participation in the Zankore project, which is developing its first 200 MW AI Factory in Batang, Central Java.
Meanwhile, Mirae Asset Sekuritas Senior Market Analyst Nafan Aji Gusta recommended an add rating for PT Telkom Indonesia Tbk (TLKM), with a target price of IDR 3,030 per share. A key potential catalyst is the possible divestment of a 70% stake in NeutraDC, Telkom’s data center subsidiary, which could be valued at between US$1.0 billion and US$1.5 billion as the company seeks to attract global hyperscaler partners.
Kiwoom Sekuritas Indonesia analyst Sukarno Alatas also issued a buy recommendation for PT Dian Swastatika Sentosa Tbk (DSSA), with a target price of IDR 1,500 per share. DSSA is expanding its digital infrastructure portfolio through the development of the US$300 million SMX01 hyperscale facility in Jakarta, which is scheduled to begin operations in the fourth quarter of 2026.
Digital Infrastructure Growth Strengthens the Broader Supply Chain
CGSI noted that the expansion of AI and data center infrastructure is also generating opportunities across the broader supply chain of companies listed on the Indonesia Stock Exchange.
Potential beneficiaries include construction contractor PT Total Bangun Persada Tbk (TOTL), industrial estate developer PT Puradelta Lestari Tbk (DMAS), submarine cable provider PT XLSmart Telecom Sejahtera Tbk (EXCL), and energy company PT Cikarang Listrindo Tbk (POWR).
The rapid expansion of AI and cloud computing infrastructure therefore has implications well beyond data center operators. As Indonesia attracts increasing investment into computing capacity, power, connectivity, industrial estates, and supporting infrastructure, the country could strengthen its position as one of Southeast Asia’s emerging hubs for the next generation of digital infrastructure.
Conclusion
Indonesia is positioning itself as an increasingly important destination for AI and data center investment in Southeast Asia. With national data center capacity projected to reach 3.5 GW by 2030, growing investment commitments, and rising demand for computing infrastructure, the sector presents significant opportunities across power, connectivity, construction, industrial estates, and technology services. Continued infrastructure development and strong investor confidence could further strengthen Indonesia’s role as a regional hub for AI-driven digital infrastructure.
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