Jakarta, INTI - The data center industry in Indonesia is expected to continue to grow rapidly as demand for digital services, cloud computing, and artificial intelligence (AI) increases. The growth rate of the national data center industry is also considered higher than the global average.
Erick Hadi, Head of Talent Development & Industry Certification of Indonesia Data Center Provider Organization, stated that the global data center industry is growing at around 20% to 25% per year. Meanwhile, Indonesia is experiencing faster growth, driven not only by domestic demand but also by the relocation of investment from neighboring countries.
Data Center Development in Southeast Asia
Erick explained that since Singapore halted the construction of new data centers in 2019, some investment has shifted to Malaysia and Indonesia. As time goes, Johor region begins to face electricity and water supply constraints, making Indonesia increasingly considered as a location for data center development in Southeast Asia.
"Data center growth in Indonesia is faster than the global average. This is not only due to domestic demand, but also the shift of capacity from Singapore to Malaysia and Indonesia," said Erick in Jakarta, Monday, July 6, 2026.
He noted that this condition is also supported by the expansion of global cloud service providers and hyperscaler technology companies, which require data center networks across multiple countries to accelerate the distribution of data and digital services.
Additionally, the rapid development of AI has also increased the need for data center infrastructure. Unlike conventional digital applications, AI requires significantly larger computing and data storage capacities, driving increased investment in data center facilities.
Erick also said that electricity supply in Indonesia has not been a major obstacle for the data center industry. Developers generally secure long-term electricity supply contracts before the project starts, so energy needs are taken into account from the investment planning stage.
Challenge in Talent and Human Resource Availability
However, he believes the biggest challenge going forward will be the availability of human resources. As data center development increases, the need for labor also increases, both during the construction process and once the facility begins operating. A single data center development project is estimated to employ between 900 and 2,000 workers, depending on the facility's capacity.
For a data center project with a capacity of around 500 megawatts (MW), the workforce during construction can reach 1,500 to 2,000 people. This requirement includes not only engineers but also various supporting professionals with competencies that meet industry operational standards.
After the data center begins operating, companies will continue to need workers to support operational and maintenance activities. Erick is optimistic that the prospects for the data center industry in Indonesia remain very promising, driven by the growing trend of digitalization, cloud adoption, and AI development. However, he emphasized that industry growth needs to be balanced with the development of digital talent and engineering personnel to meet future human resource needs.
Conclusion
The data center industry in Indonesia is projected to grow faster than the global average due to increasing demand for digital services, cloud computing, and artificial intelligence (AI). The growth is also due to a shift in investment from Singapore to Malaysia and Indonesia. Erick Hadi stated that the needs of hyperscalers and global cloud service providers are driving data center development in the country, while electricity supply is not yet a major constraint. The biggest challenge lies in the availability of human resources, considering that each data center project can absorb around 900 to 2,000 workers during construction and still requires operational personnel after operation.
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