Jakarta, INTI - Indonesia’s data center industry is still considered to be in the early stages of growth, despite having a substantial expansion pipeline. This presents opportunities for several listed companies to capitalize on rising demand for digital infrastructure over the coming years.
BRI Danareksa Sekuritas Equity Research Analysts Kafi Ananta and Erindra Krisnawan said Indonesia’s installed data center IT capacity reached approximately 580 megawatts (MW) in the first half of 2026. The capacity is projected to surge to 3.5 gigawatts (GW) by 2030.
The analysts said the growth is being driven by increasing demand for cloud services and AI infrastructure requiring large volumes of GPUs, while limited regional capacity creates further opportunities for Indonesia’s data center market.
They estimate that national data center capacity will grow at a compound annual growth rate (CAGR) of 56.7% between 2026 and 2030. Jakarta remains the country’s primary hub, accounting for around 55% of operational national capacity.
Jakarta currently has 322 MW of operational capacity and approximately 1.7 GW in its development pipeline. Batam, meanwhile, has 126 MW of operational capacity and a pipeline of around 1.4 GW, making both regions key centers for Indonesia’s data center expansion.
According to Kafi and Erindra, Jakarta is primarily supported by domestic demand, while Batam has strong potential to benefit from regional spillover from Singapore. Batam’s proximity to Singapore and access to submarine cable connectivity further strengthen its position.
The analysts noted that both Jakarta and Batam remain in the early stages of their data center growth cycles, with much of their future capacity still concentrated in projects currently under development.
Cloud and AI Drive Data Center Expansion
The industry’s growth is also being fueled by increasing demand for cloud computing and artificial intelligence. In Batam, the hyperscale segment accounts for approximately 71% of the market, while several projects are increasingly being designed to accommodate AI computing requirements.
However, Indonesia’s largest data center development pipelines remain dominated by private operators and companies backed by foreign investors. Several operators have pipelines reaching hundreds of megawatts, including DayOne with 450 MW, Princeton Digital with 360 MW, ST Telemedia with 322 MW, and GDC and EdgeConneX with 200 MW each.
Amid this competitive landscape, several Indonesian listed companies are building exposure through facility development and partnerships with global operators. Kafi and Erindra identified TLKM, ISAT, DSSA, and DCII as having some of the largest direct exposure to the sector’s growth.
Local players are still in the early stages of the data center growth cycle, leaving significant room for expansion given their substantial development pipelines.
Local Companies Expand Data Center Exposure
PT Telkom Indonesia Tbk (TLKM) has exposure to the data center business through NeutraDC. The company currently has 90.4 MW of IT capacity and is targeting total capacity of 300 MW by 2030.
PT Indosat Tbk (ISAT), meanwhile, has exposure through its 25% stake in BDx Indonesia. BDx operates 30 MW across three edge campuses and has a 72 MW hyperscale facility at CGK4 Jatiluhur.
ISAT could also hold a 30% stake in Zankore, an AI neocloud joint venture with its parent company, Ooredoo. BRI Danareksa expects the potential investment to provide significant value upside for ISAT.
PT Dian Swastatika Sentosa Tbk (DSSA) operates 24 edge data centers with a combined capacity of 10 MW. The company is also developing SMX01 in Jakarta through a joint venture with LG.
The facility is targeted to be ready for service in the fourth quarter of 2026, with an initial capacity of 18 MW that can be expanded to 60 MW. SMX01 is also designed to be AI-ready, featuring liquid cooling technology.
PT DCI Indonesia Tbk (DCII) remains the company most focused exclusively on the data center business. DCII currently operates 128 MW across four facilities and has a substantial expansion pipeline.
The company is considered Indonesia’s largest pure-play data center operator, with 128 MW of operational capacity and a deep development pipeline, particularly its H3 project in Bintan, which has potential capacity exceeding 1,000 MW.
The H3 Sky DC Park project in Bintan represents one of DCII’s largest expansion opportunities. The project can potentially be developed to more than 1,000 MW across approximately 700 hectares and is positioned to capture data center demand spilling over from Singapore.
Beyond these four companies, Kafi and Erindra also highlighted several early-stage players, including PT NexAI Digital Infrastruktur Tbk (MGLV), PT Sinergi Inti Andalan Prima Tbk (INET), and PT Bakrie & Brothers Tbk (BNBR).
MGLV plans to transform into a data center platform and acquire two Nextier assets with a combined capacity of 96 MW. Meanwhile, INET, through its subsidiary SIDI, has developed colocation data center facilities and plans to build a green data center in Jatiluhur.
Overall, BRI Danareksa remains positive on the data center theme, citing its structural and long-term growth prospects, with electricity availability and operational scale expected to become key differentiating factors.
Among the data center-related stocks, BRI Danareksa Sekuritas recommends buying TLKM with a target price of Rp3,500. The analysts also give a buy recommendation for ISAT with a target price of Rp2,500 per share.
Conclusion
Indonesia’s data center industry is entering a high-growth phase, supported by rising demand for cloud computing, AI infrastructure, and digital services. With capacity expected to expand significantly through 2030, Jakarta and Batam are emerging as key hubs, while local players such as TLKM, ISAT, DSSA, and DCII are positioning themselves to capture long-term opportunities in the sector.
Read more: Indonesia Poised to Attract Data Center Spillover from Singapore and Malaysia