Indonesia Data Center Construction Market Size (2024 - 2029)

The Indonesia Data Center Construction Market is poised for significant growth, driven by the expansion of the digital economy and increasing demand for data services and infrastructure. Despite its lower competitive index compared to other Southeast Asian nations, Indonesia presents substantial commercial opportunities for data center development. The rapid rise of start-ups and a growing population are contributing to the demand for hyper-scale data centers. The COVID-19 pandemic has further underscored the importance of data centers in supporting the online workplace, prompting global vendors to invest in the Indonesian market. This growth trajectory is supported by the country's robust internet penetration and mobile usage, which are key factors in the burgeoning e-commerce sector.

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Market Size of Indonesia Data Center Construction Industry

Indonesia Data Center Construction Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 3.25 Billion
Market Size (2029) USD 7 Billion
CAGR (2024 - 2030) 16.59 %
Market Concentration Medium

Major Players

Indonesia Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Indonesia Data Center Construction Market Analysis

The Indonesia Data Center Construction Market size is estimated at USD 3.25 billion in 2024, and is expected to reach USD 7 billion by 2029, growing at a CAGR of 16.59% during the forecast period (2024-2029).

  • The Southeast Asian region's internet economy accounts for over USD 100 billion, according to SpaceDC Pte Ltd, and it is predicted to expand to USD 300 billion by 2025. As a result, the demand for data services and infrastructure is expected to grow rapidly throughout the forecast period.
  • Indonesia ranks lower in the competitive index than other Southeast Asian countries. However, the potential commercial upside for data center players is significant. 
  • Indonesia is witnessing a growing digital economy, coupled with the rapid growth of start-up companies and an ever-growing population, leading to a boost in hyper-scale data centers.
  • Indonesia's current e-commerce market is similar to China's online marketplace, with a large pool of entrepreneurial sellers providing goods based mainly on social media recommendations. The country is also Asia's foremost mobile-first nation, with one of the highest mobile-Facebook usage rates, aggressively promoting the growth of data centers.

Indonesia Data Center Construction Industry Segmentation

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.

Indonesia data center construction market is segmented by tier type (tier 1 and 2, tier 3, and tier 4), by data center size (small, medium, large, massive, and mega), by infrastructure (cooling infrastructure (air-based cooling, liquid-based cooling, evaporative cooling), power infrastructure (ups systems, generators, power distribution unit (pdu), racks and cabinets, servers, networking equipment, physical security infrastructure, design and consulting services, and other infrastructure), and end user ( it & telecommunication, bfsi, government, healthcare, and other end user). The market sizes and forecasts are provided in values of USD for all the above segments.

Tier Type
Tier 1 and 2
Tier 3
Tier 4
Data Center Size
Small
Medium
Large
Mega
Massive
Infrastructure
Cooling Infrastructure
Air-based Cooling
Liquid-based Cooling
Evaporative Cooling
Power Infrastructure
UPS Systems
Generators
Power Distribution Unit (PDU)
Racks and Cabinets
Servers
Networking Equipment
Physical Security Infrastructure
Design and Consulting Services
Other Infrastructure
End-User
IT & Telecommunication
BFSI
Government
Healthcare
Other End User
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Indonesia Data Center Construction Market Size Summary

The Indonesia data center construction market is poised for significant growth, driven by the expanding digital economy and increasing demand for data services and infrastructure. Despite its lower ranking in the competitive index compared to other Southeast Asian nations, Indonesia offers substantial commercial potential for data center operators. The country's burgeoning start-up ecosystem, coupled with a rapidly growing population, is fueling the development of hyper-scale data centers. The COVID-19 pandemic has further underscored the importance of data centers, prompting global vendors to expand their presence in Indonesia. Notable investments, such as Smartfren's partnership with UAE's G42 to build a large-scale data center, highlight the country's strategic focus on enhancing its digital infrastructure and maintaining data sovereignty.

The market is characterized by a shift towards tier 3 and tier 4 data centers, which are increasingly preferred due to their ability to provide uninterrupted services and enhanced efficiency. The tier 3 segment currently holds a significant market share, while the tier 4 segment is expected to experience the highest growth. The demand for these advanced facilities is driven by the need for business continuity and the growing presence of global conglomerates. Major players in the market, including NTT Communications Corporation, PT DCI Indonesia, and Telkomsigma, are actively expanding their operations to meet the rising demand for high-capacity data centers. Recent developments, such as the launch of new facilities and strategic partnerships, underscore the dynamic nature of the Indonesian data center construction market, which is set to continue its upward trajectory in the coming years.

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Indonesia Data Center Construction Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Major ICT Indicators Contributing to the Growth of Data Centre in Indonesia

      2. 1.2.2 Rise of Green Data Centers

      3. 1.2.3 Government Support in the Form of Tax Incentives for Development of Data Centers

    3. 1.3 Market Restraints

      1. 1.3.1 Higher Initial Investments and Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Tier Type

      1. 2.1.1 Tier 1 and 2

      2. 2.1.2 Tier 3

      3. 2.1.3 Tier 4

    2. 2.2 Data Center Size

      1. 2.2.1 Small

      2. 2.2.2 Medium

      3. 2.2.3 Large

      4. 2.2.4 Mega

      5. 2.2.5 Massive

    3. 2.3 Infrastructure

      1. 2.3.1 Cooling Infrastructure

        1. 2.3.1.1 Air-based Cooling

        2. 2.3.1.2 Liquid-based Cooling

        3. 2.3.1.3 Evaporative Cooling

      2. 2.3.2 Power Infrastructure

        1. 2.3.2.1 UPS Systems

        2. 2.3.2.2 Generators

        3. 2.3.2.3 Power Distribution Unit (PDU)

      3. 2.3.3 Racks and Cabinets

      4. 2.3.4 Servers

      5. 2.3.5 Networking Equipment

      6. 2.3.6 Physical Security Infrastructure

      7. 2.3.7 Design and Consulting Services

      8. 2.3.8 Other Infrastructure

    4. 2.4 End-User

      1. 2.4.1 IT & Telecommunication

      2. 2.4.2 BFSI

      3. 2.4.3 Government

      4. 2.4.4 Healthcare

      5. 2.4.5 Other End User

Indonesia Data Center Construction Market Size FAQs

The Indonesia Data Center Construction Market size is expected to reach USD 3.25 billion in 2024 and grow at a CAGR of 16.59% to reach USD 7 billion by 2029.

In 2024, the Indonesia Data Center Construction Market size is expected to reach USD 3.25 billion.

Indonesia Data Center Construction Market Report Snapshots

Indonesia Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)