Indonesia Data Center Colocation Market - Supply and Demand
Dublin, Oct. 07, 2026 (GLOBE NEWSWIRE) -- "Indonesia Data Center Colocation Market - Supply & Demand Analysis 2026-2031" has been added to ResearchAndMarkets.com's offering.
The Indonesia data center colocation market is projected to grow at a CAGR of 14.36% from 2025 to 2031, supported by hyperscale cloud expansion, artificial intelligence workloads, enterprise digital transformation, and rising demand for advanced digital infrastructure. Greater Jakarta remains the country's primary data center hub, while Bekasi, Karawang, Batam, and Surabaya are attracting new investment due to lower land costs, strategic connectivity, and opportunities for large campus-style developments.
Utilized Area and Rack Capacity Outlook
Indonesia's utilized data center area is forecast to reach 8.01 million square feet by 2031. Strong occupancy levels are encouraging operators to expand existing campuses and develop facilities capable of supporting future cloud and AI requirements. Bekasi and Karawang are becoming preferred hyperscale locations because they offer more cost-effective land than Central Jakarta and provide space for phased capacity expansion.
Utilized rack capacity is expected to reach 198 thousand units by 2031. AI and generative AI adoption will increase rack power densities, with hyperscale operators deploying configurations exceeding 50-100 kW. This transition is driving investment in higher-capacity UPS systems, advanced power distribution, and liquid cooling infrastructure for high-density GPU clusters.
Liquid Cooling and AI-ready Infrastructure
Liquid cooling is emerging as a major Indonesia data center market trend as operators prepare for high-density AI applications. In October 2025, BW Digital completed the structural framework of its NDP1 data center in Batam, incorporating direct-to-chip liquid cooling capabilities from the initial deployment phase. In March 2025, SM+ began constructing its SMX01 facility in Jakarta with on-demand advanced liquid-cooling infrastructure for enterprise and AI workloads.
Geographic Expansion and Investment
Data center development is expanding beyond Jakarta to improve redundancy, reduce latency, and serve regional enterprises. In May 2026, DCI Indonesia secured a $980.9-million credit facility to accelerate new construction and respond to rising customer demand. The company also inaugurated its 9-MW E2 Surabaya facility, strengthening edge, cloud, and AI-ready capacity outside the capital.
Digital Realty entered Indonesia in 2025 through a joint venture with Bersama Digital Infrastructure Asia and acquired two operational Jakarta facilities. The transaction reinforced international investment in one of Southeast Asia's fastest-growing colocation markets. Batam and Surabaya are also gaining importance due to submarine cable connectivity, regional demand, and their suitability for edge infrastructure.
Power Availability Remains a Key Industry Restraint
Power availability and grid reliability continue to affect data center development, particularly in secondary cities and outer islands. Hyperscale and AI projects require substantial electricity capacity, increasing pressure on long-term power allocations and grid connections. Developers frequently invest in dedicated substations, backup generation, and redundant systems to meet uptime requirements.
Indonesia's state-owned utility, PLN, is expanding grid infrastructure to support large-scale projects. PLN Batam signed power supply agreements of 90 MVA for NeutraDC and 511 MVA for DayOne's hyperscale campus. Continued transmission upgrades, renewable energy integration, grid modernization, and dedicated supply arrangements will be critical to sustained market growth.
Colocation Demand and Revenue
The cloud & IT sector represented approximately 30% of Indonesia's colocation demand in 2025, making it the largest industry segment. Demand is being shaped by cloud migration, SaaS adoption, hyperscale deployments, AI computing, and enterprise digitization. Future requirements are expected to prioritize AI-ready capacity, GPU infrastructure, liquid cooling, and high-density power configurations.
Retail colocation generated more than 68% of total market revenue in 2025. However, wholesale colocation is projected to approach 47% of revenue by 2031 as hyperscale leasing activity increases. The development of company-owned cloud facilities, including Microsoft projects, may also shift workloads away from third-party sites and reshape colocation demand.
Indonesia Data Center Market Report Coverage
Market forecasts for utilized white floor area, IT power capacity, rack capacity, occupancy, and colocation revenue
Core & Shell Vs Installed Vs Utilized IT Power Capacity analysis
Retail and wholesale colocation revenue forecasts for 2025-2031
Colocation demand by end-user, including Cloud/IT and BFSI
Retail colocation pricing, Addons, wholesale pricing, and pricing trends
Analysis of sustainability, cloud operations, submarine cables, and regional expansion
Competitive share analysis by operator revenue and MW capacity
Coverage of 90 existing facilities and 26 upcoming facilities across 15+ regions
Vendor Landscape
Major existing Indonesia colocation operators include BDx Data Centers, Biznet Data Center, DayOne, Digital Edge DC (INDONET), EdgeConneX, NTT DATA, Princeton Digital Group, SM+, ST Telemedia Global Data Centres, DCI Indonesia, Digital Realty Bersama, Equinix, Indokeppel Data Centres, Moratelindo Nusantara Data Center (NDC), Pure Data Centres, Telkom Indonesia, and other regional providers.
New operators identified in the market include BW Digital, Aslan Energy Capital, DAMAC Digital, Racks Central, and SEAX Global. Their entry is expected to increase competition, expand capacity, and support Indonesia's position as a strategic cloud, AI, and hyperscale data center destination in Southeast Asia.
Key Topics Covered
1. ABOUT THE ANALYST
2. ABOUT OUR DATA CENTER CAPABILITIES