Jakarta, INTI - Indonesia is becoming an increasingly attractive destination for data center investments as demand for digital infrastructure and artificial intelligence (AI) continues to grow across Southeast Asia, potentially offering advantages over Singapore. This was highlighted by Yasuhiro Kajiki, Managing Director for Japan and APAC at NTT Global Data Centers.
According to Kajiki, land constraints and limited energy supply in Singapore are creating opportunities for Indonesia to strengthen its position as a strategic data center market. These challenges are also encouraging industry players to consider other countries in the region as alternative destinations for digital infrastructure development.
"Indonesia represents the largest market in terms of its domestic user base and the number of digital devices. These factors are also among the key considerations behind NTT's investment priorities in the region," Kajiki said during a press conference marking the inauguration of the JKT2A Data Center in Jakarta on Tuesday, November 3, 2026.
Indonesia Faces Regional Competition Amid Growing AI Infrastructure Demand
However, the Japanese telecommunications group's data center subsidiary acknowledged that Indonesia faces regional competition from countries such as Malaysia and Thailand. All three markets are becoming increasingly relevant as demand for AI computing capacity continues to accelerate.
Although Kajiki declined to disclose the investment value allocated to NTT's data center business in Indonesia, he emphasized that the country remains one of the company's key priorities in its global investment strategy.
"NTT is currently focusing on the Greater Jakarta metropolitan area due to its strong market demand. We are also monitoring development opportunities in other regions, including Batam, as demand for digital infrastructure continues to grow," he said.
Indonesia's large domestic market provides a significant advantage in attracting data center investments amid intensifying regional competition. However, the availability of land, energy resources, and connectivity will remain critical factors in maximizing these opportunities.
NTT DATA Expands Jakarta Infrastructure with 12 MW Data Center
Previously, NTT DATA officially inaugurated the Jakarta 2 Annex Data Center (JKT2A), a facility with an IT capacity of 12 megawatts (MW) in Jakarta. The development further strengthens the company's digital infrastructure to accommodate growing demand for cloud services, artificial intelligence (AI), and digital transformation in Indonesia.
JKT2A is located within the NTT Global Data Centers campus and directly connected to the existing Jakarta 2 (JKT2) facility.
The location serves as one of Jakarta's major connectivity hubs, hosting more than 240 network service providers, JKT-IX, cloud services, and submarine cable connections. This connectivity ecosystem further reinforces the facility's role in supporting Indonesia's expanding digital infrastructure requirements.
Conclusion
Indonesia is strengthening its position as a strategic data center investment destination in Southeast Asia, supported by its large digital market and growing demand for AI and cloud infrastructure. NTT's expansion through the JKT2A facility highlights the country's investment potential, while competition with Malaysia and Thailand underscores the importance of developing reliable energy supplies, land availability, and digital connectivity. These factors will be crucial in ensuring Indonesia captures greater value from the region's expanding digital economy.
Read more: Komdigi Urges Data Centers to Deliver Greater Economic Value to Indonesia Amid Rising Resource Demands