Indonesia Data Center Market Size

The Indonesia Data Center Market is experiencing significant growth, with a notable expansion in its capacity and revenue projections over the forecast period. The market's expansion is driven by the increasing demand for colocation services, particularly in tier 3 and tier 4 data centers, which are becoming preferred due to their ability to provide uninterrupted services essential for business continuity. The tier 3 segment holds a substantial portion of the market share, while the tier 4 segment is anticipated to grow at the fastest rate. This shift in preference is prompting the construction of more advanced data center facilities to meet the evolving needs of global conglomerates and ensure minimal downtime.

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Market Size of indonesia data center Industry

Indonesia Data Center Market Summary
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https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2029
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Volume (2024) 0.65 Thousand MW
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Volume (2029) 1.41 Thousand MW
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Tier Type Tier 3
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2024 - 2029) 16.92 %
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Fastest Growing by Tier Type Tier 4

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Indonesia Data Center Market Analysis

The Indonesia Data Center Market size is estimated at 0.65 thousand MW in 2024, and is expected to reach 1.41 thousand MW by 2029, growing at a CAGR of 16.92%. Further, the market is expected to generate colocation revenue of USD 4,012.7 Million in 2024 and is projected to reach USD 11,193.7 Million by 2029, growing at a CAGR of 22.77% during the forecast period (2024-2029).

USD 4,012.70 Million

Market Size in 2024

USD 11,193.7 Million

Market Size in 2029

20.1%

CAGR (2017-2023)

22.7%

CAGR (2024-2029)

IT Load Capacity

647 MW

Value, IT Load Capacity, 2024

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The Indonesian data center market is projected to witness steady growth during the forecast period, with the total IT load capacity expected to reach 1,413.49 MW by 2029.

Total Raised Floor Space

Sq. Ft. 2.36 M

Volume, Raised Floor Space, 2024

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The total raised floor space in the country is expected to reach 4.3 million sq. ft by 2029. Companies such as STT GDS and DCI Indonesia have announced the construction of new hyperscale data center facilities.

Installed Racks

118,121

Volume, Installed Racks, 2024

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The total number of installed racks is expected to reach 218,855 by 2029. Greater Jakarta is expected to house the maximum number of racks in the coming years.

# of DC Operators & DC Facilities

25 and 72

Volume, DC Facilities, 2024

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The increasing uptime demand and 24/7 service continuity contracts are expected to drive the construction of tier 3 and 4 data centers in the country in the coming years.

Leading Market Player

9.3%

Market Share, Space DC Pte Ltd., 2023

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Space DC Pte Ltd is a leading player in the Indonesian data center market. It is projected to continue its leadership position by rolling out a mega data center with 600 MW capacity during the forecast period.

Tier 3 data center accounted for majority share in terms of volume in 2023, and Tier 4 is expected to dominate through out the forecasted period

  • The tier 3 segment had a market share of over 50% in the Indonesian data center market in 2022. It is further projected to register a CAGR of 15% to reach an IT load capacity of 652.6 MW by 2029. On the other hand, the tier 4 segment is expected to witness the highest growth of 25.9% by 2029. Implementation of standards in the data center facilities ensures minimal downtown while increasing the efficiency of facilities. Therefore, data centers with additional redundant equipment in place for backup are preferred by customers.
  • Tier 1 & 2 facilities are losing their demand as they are incompetent in fulfilling the growing uninterrupted services of businesses. The growing number of global conglomerates has given rise to business continuity services 24*7, which has gradually shifted the preference toward tier 3 and 4 data centers.
  • As of 2022, there were nearly 25 tier 3 data center facilities in the country, followed by eight tier 4 data centers. PT DCI Indonesia Tbk's JK1 facility was the first data center in the country to receive the Tier 4 certification in 2013. Since then, NTT and Digital Edge (Singapore) Pte Ltd have had to build tier 4 data centers in the country. The growing demand from customers is expected to drive the construction of tier 3 and 4 data centers in the country in the coming years.   
Indonesia Data Center Market

Indonesia Data Center Industry Segmentation

Greater Jakarta are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • The tier 3 segment had a market share of over 50% in the Indonesian data center market in 2022. It is further projected to register a CAGR of 15% to reach an IT load capacity of 652.6 MW by 2029. On the other hand, the tier 4 segment is expected to witness the highest growth of 25.9% by 2029. Implementation of standards in the data center facilities ensures minimal downtown while increasing the efficiency of facilities. Therefore, data centers with additional redundant equipment in place for backup are preferred by customers.
  • Tier 1 & 2 facilities are losing their demand as they are incompetent in fulfilling the growing uninterrupted services of businesses. The growing number of global conglomerates has given rise to business continuity services 24*7, which has gradually shifted the preference toward tier 3 and 4 data centers.
  • As of 2022, there were nearly 25 tier 3 data center facilities in the country, followed by eight tier 4 data centers. PT DCI Indonesia Tbk's JK1 facility was the first data center in the country to receive the Tier 4 certification in 2013. Since then, NTT and Digital Edge (Singapore) Pte Ltd have had to build tier 4 data centers in the country. The growing demand from customers is expected to drive the construction of tier 3 and 4 data centers in the country in the coming years.   
Hotspot
Greater Jakarta
Rest of Indonesia
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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Indonesia Data Center Market Size Summary

The Indonesian data center market is experiencing significant growth, driven by the increasing demand for advanced data center facilities, particularly tier 3 and tier 4 centers. These facilities are preferred due to their ability to provide uninterrupted services and enhanced efficiency, catering to the needs of global conglomerates requiring 24/7 business continuity. The market is witnessing a shift away from tier 1 and tier 2 facilities, which are unable to meet the growing demands. The construction of tier 3 and tier 4 data centers is expected to rise, supported by the implementation of standards that ensure minimal downtime and increased operational efficiency. The presence of major players like PT DCI Indonesia Tbk, NTT, and Digital Edge is further propelling the market's expansion, as they continue to invest in building and upgrading data center facilities to meet the burgeoning demand.

The growth of smartphone users in Indonesia, fueled by the widespread availability of 4G and the introduction of 5G services, is significantly impacting the data center market. The increase in smartphone penetration and data consumption is driving the demand for robust data center infrastructure, as digital services become more prevalent. The banking, financial services, and insurance (BFSI) sector, a major end user, is expected to invest more in colocation services to support the rising number of digital transactions conducted via smartphones. Additionally, improvements in broadband connectivity, particularly through fiber-to-the-home (FTTH) services, are enhancing internet access and speed, further supporting data center growth. The government's initiatives, such as the "Digital Indonesia Roadmap" and the completion of the Palapa Ring Project, aim to improve digital infrastructure and connectivity across the archipelago, addressing disparities and fostering a conducive environment for data center development.

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Indonesia Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Greater Jakarta

      2. 1.1.2 Rest of Indonesia

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

Indonesia Data Center Market Size FAQs

The Indonesia Data Center Market is projected to register a CAGR of 16.92% during the forecast period (2024-2029).

EdgeConneX Inc., EdgeConneX Inc., NTT Ltd, PT Sigma Tata Sadaya and PT. Faasri Utama Sakti are the major companies operating in the Indonesia Data Center Market.

Indonesia Data Center Market Report Snapshots

Indonesia Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029