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Potential and Major Challenges in Developing Data Centers in Indonesia

1 year ago | Data Centre and Cloud


Jakarta, INTI - Data centers have become one of the main pillars supporting digital transformation across various sectors, ranging from business to government. Data centers play a vital role in providing reliable, efficient, and secure technological infrastructure for managing data, which continues to grow along with technological advancements. In Indonesia, this industry has seen significant growth in recent years, with the emergence of numerous data center companies across the country. This reflects the increasing demand for adequate data processing services, in line with the accelerated adoption of digital technology in society.

According to the Chairman of the Indonesian Data Center Association (IDPRO), Hendra Suryakusuma, the industry’s growth is marked by a significant increase in power capacity, reaching up to 300 megawatts. This figure highlights the substantial investments channeled into developing data center infrastructure in the country. Furthermore, the increasing involvement of both local and international companies in building data center facilities demonstrates Indonesia's immense potential as a technology hub in Southeast Asia. This development also presents a strategic opportunity to support the national digital economy transformation.

High Costs

The development of data centers in Indonesia comes with challenges, especially the substantial investment required. During an interview with Mr. Hendra Suryakusuma, Chairman of IDPRO, he explained,

"Investing in building data centers is very expensive; one megawatt for a Tier 3 data center costs between USD 10.3 million to USD 11 million," said Mr. Hendra.

Additionally, Mr. Hendra emphasized that data center technology, encompassing hardware, software, security systems, and electronic systems, is evolving rapidly. This underscores the need for accelerated improvements in the skills of human resources managing data centers.

Acceleration of Data Center Technology Development

The development of data center technology is experiencing rapid acceleration thanks to advances in Artificial Intelligence (AI), which is increasingly integrated into IT construction systems. AI not only enhances data processing efficiency but also creates new demands for more sophisticated supporting infrastructure.

"IT construction technology is evolving and accelerating with AI (Artificial Intelligence), requiring supporting tools such as electricity, server cooling, and different electronic systems," said Mr. Hendra.

AI technology is driving significant changes in power needs, server cooling systems, and other electronic equipment. This transformation requires data center operators to adapt to more modern and sustainable technological solutions to ensure the continued growth and operation of data centers.

The Need to Improve Human Resources

Improving the quality and quantity of human resources is one of the top priorities in supporting the growth of Indonesia's data center industry. Mr. Hendra Suryakusuma stated that IDPRO has collaborated with the Directorate General of Human Resource Development under the Ministry of Communication and Information Technology (now known as Komdigi) to produce more skilled engineers and technicians for the data center industry.

"We are also working with the Directorate General of Human Resource Development, now called Komdigi, with the aim of increasing the number of engineers or technicians in the data center industry," said Mr. Hendra.

This collaboration seeks to address the pressing need for professionals capable of operating, maintaining, and developing advanced technologies within data centers, as the complexity of digital infrastructure continues to rise in the era of technological transformation.

Government Regulations

Government regulations play a crucial role in supporting the data center ecosystem in Indonesia, particularly concerning technology transfer and data protection. According to Mr. Hendra, policies issued by the government not only provide a legal framework for the industry’s operations but also open opportunities for collaboration with external parties to adopt the latest technologies.

"We previously had Government Regulation No. 82 of 2012, which was later relaxed to become Government Regulation No. 71 of 2019," said Mr. Hendra.

This change was made to provide greater flexibility for industry players, with the hope that it would accelerate investment while strengthening data sovereignty within the country.

Indonesia Technology & Innovation
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