Jakarta, INTI - Indonesia is emerging as a key market for data center growth in Southeast Asia, driven by the rapid adoption of high-performance computing technologies such as artificial intelligence (AI) and the ongoing digital transformation across various sectors.
According to a report by Mordor Intelligence published in Real Estate Asia, the data center market in Indonesia is projected to reach 3.07 billion (Rp45.9trillion) by 2026, doubling its 2020 value of 1.53 billion (Rp22.9 trillion).
This growth reflects the increasing demand for strong digital infrastructure to support the country’s expanding digital economy.
ISC Expands Data Center Capacity to Meet Rising Demand
In response to this growing demand, PT Indonesia Super Corridor (ISC), a subsidiary of the PT Cyber Network Indonesia (CNI) Group, has announced a significant expansion of its data center capacity at the ISC Tower in Mampang Prapatan, South Jakarta.
The facility, which holds a Tier IV Facility certification from the Uptime Institute, will increase its capacity to 6 megawatts (MW). This expansion includes the addition of high-capacity racks, each supporting 20 kilowatts (kW), equivalent to 1.5 MW per floor, to accommodate the rising need for high-performance computing infrastructure.
Benyamin P. Naibaho, Founder of ISC, emphasized that this expansion is a direct response to the growing market demand for advanced computing infrastructure, particularly hardware that supports AI.
“The increase in data center capacity is our response to the rising demand for high-performance computing infrastructure, especially for hardware that supports artificial intelligence,” Naibaho stated in a press release on February 7, 2025.
He also highlighted ISC’s commitment to sustainability, noting that the facility has been awarded the EDGE green building certification by the Green Building Council Indonesia, underscoring its focus on energy efficiency and environmental responsibility.
Low Data Center Penetration, A Market Opportunity
The upgraded ISC data center incorporates state-of-the-art infrastructure, including advanced cooling systems, reliable power solutions, and high-security standards.
These features are designed to minimize environmental impact while ensuring operational reliability and efficiency. By consolidating more servers and hardware into a single space, ISC aims to enhance operational efficiency and reduce costs, making it a competitive player in Indonesia’s data center market.
Despite the rapid growth, data center penetration in Indonesia remains relatively low, at less than 1 watt per capita, according to the Indonesian Internet Service Providers Association (APJII).
This figure is significantly lower than neighboring countries such as Singapore, where data center penetration reaches 100 watts per capita, and Japan, which averages 10 watts per capita.
Tedy Harjanto, CEO of Bitera, another key player in Indonesia’s data center market, noted that this low penetration rate presents a significant opportunity for growth. “Indonesia still has a lot of room to develop its data center infrastructure,” Harjanto said.
Competitive Landscape and Market Potential
The Indonesian data center market has attracted both local and international players. ISC, which entered the market in February 2024, is one of the leading providers, alongside Bitera, which also launched its operations in the same year.
These companies are capitalizing on the growing demand for data center services, driven by the digitalization of industries, the rise of AI, and the increasing need for cloud computing and big data analytics.
While the potential for growth is substantial, the industry faces challenges such as the need for significant investment in infrastructure, energy efficiency, and cybersecurity.
However, the low penetration rate and the government’s push for digital transformation create a favorable environment for expansion. As more businesses and government agencies adopt digital solutions, the demand for data center services is expected to surge, further driving market growth.
Conclusion
Indonesia’s data center industry is on the cusp of a transformative period, fueled by the rapid adoption of digital technologies and the increasing demand for high-performance computing infrastructure.
With companies like ISC and Bitera leading the charge, the market is poised for significant growth, offering immense opportunities for investors and businesses alike.
The expansion of ISC’s data center capacity, coupled with its commitment to sustainability and innovation, exemplifies the industry’s potential to support Indonesia’s digital economy.
As the country continues to bridge the gap in data center penetration, it is well-positioned to become a regional hub for digital infrastructure, driving economic growth and technological advancement in Southeast Asia.