Indonesia data center market size was valued at $1.7 billion and is projected to reach $2.4 billion by 2027.
Chicago, June 20, 2022 (GLOBE NEWSWIRE) -- According to Arizton’s latest research report, the Indonesia data center market is expected to grow at a CAGR of 5.46% during 2022-2027. Indonesia is witnessing an increase in investment with over 45%, due to investments from colocation providers such as DCI Indonesia, GDS Services, Princeton Digital Group, Indonet, ST Telemedia Global Data Centers and Telkom Indonesia. In 2021, cloud service providers Microsoft, Google, Amazon Web Services (AWS), Tencent and Oracle established the cloud region across the country.
The contribution of core & shell services is around 50% to the total cost, with installation, design & engineering, project management, and commissioning services contributing around 30%–35%. In core & shell development in Indonesia, greenfield construction is highly popular along with the development of on-premises modular data center construction.
Indonesia Data Center Market Report Scope
MARKET SIZE (2027)
MARKET SIZE (AREA)
379 thousand Sq. Feet (2027)
MARKET SIZE (POWER CAPACITY)
76 MW (2027)
COLOCATION MARKET SIZE (REVENUE)
$400 Million (2027)
Indonesia is a preferred data center location in Southeast Asia, owing to strong connectivity, high internet penetration, and the presence of industrial areas such as Cikarang and Karawang that offer better infrastructure, ample land, and electricity supply. The moratorium in Singapore between 2019 and 2021 also contributed to the growth of the Indonesia market.
Jakarta is the primary location for data center development in Indonesia, with 10 data center facilities contributing around 45% of the existing third-party data center capacity in Indonesia. Other locations witnessing investment include Bali, Java, East Kalimantan, North Sulawesi, and Sumatra, among others.
The Indonesian government also provides tax incentives for data center development across the country. For instance, data center developers investing $7 million to $34 million in Indonesia will receive tax exemption of up to 50% for around 5 years.
In Indonesia, 5G deployments are being witnessed by telecom operators such as Telkomsel, Indosat Ooredoo and Nokia. As a result, there is activity around edge data center deployment, from Ekagrata Data Gemilang, Edge Centres, Digital Edge, and Amazon Web Services (AWS), among others.
Colocation operators are also entering the Indonesia market via M&As and joint ventures. In December 2021, Pure Data Centres and LOGOS partnered to develop a data center in Jakarta. ST Telemedia Global Data Centres, GDS Services, and Data Center First are other new entrants in Indonesia.
Indonesia also has the presence of major cloud service providers such as Alibaba Cloud, Microsoft, and Amazon Web Services (AWS). AWS and Microsoft opened cloud regions in Indonesia in 2021, to further improve connectivity and data security services.
Why Should You Buy This Research?
Market size available in the investment, area, power capacity, and the Indonesia colocation market revenue.
An assessment of the data center investment in Indonesia by colocation, hyperscale, and enterprise operators.
Data center investments in the area (square feet) and power capacity (MW) across cities.
A detailed study of the existing Indonesia data center market landscape, an in-depth industry analysis, and insightful predictions about the Indonesia data center market size during the forecast period.
Snapshot of existing and upcoming third-party data center facilities in Indonesia
Facilities Covered (Existing): 66
Facilities Identified (Upcoming): 10
Coverage: 14 Cities
Existing vs. Upcoming (Data Center Area)
Existing vs. Upcoming (IT Load Capacity)
Data center colocation market in Indonesia
Market Revenue & Forecast (2021-2027)
Retail Colocation Price
The Indonesia data center landscape market investments are classified as IT, power, cooling, and general construction services with sizing and forecasting.
A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
A transparent research methodology and the analysis of the demand and supply aspect of the market.
The report segments data center investment into the following areas:
Switches & Switchgears
Other Electrical Infrastructure
Other Mechanical Infrastructure
CRAC and CRAH Units
Cooling Towers, Condensers, and Dry Coolers
Other Cooling Units
Core & Shell Development
Installation & commissioning Services
Building & Engineering Design
Fire Detection & Suppression Systems
Data Center Infrastructure Management (DCIM)
Tier I & Tier II
Indonesia is working toward eliminating the use of coal for electricity production. The country is likely to switch and adopt renewable energy sources by 2060. Indonesia is likely to add power capacity of around 417 MW during 2022–2027. Moreover, Telecom operators and internet service providers boost data center investment in Indonesia. For instance, Inet Global, an ISP, is building a data center with an investment of around $68.9 million and area of 1.7 hectare. The facility is built out in three phases, with an expected total power capacity of 17.5 MW on full built. The first phase is started operating in 2022.
IT INFRASTRUCTURE PROVIDERS
Hewlett Packard Enterprise
DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS
SUPPORT INFRASTRUCTURE PROVIDERS
Cyber Power Systems
HITEC Power Protection
Piller Power Systems
DATA CENTER INVESTORS
Keppel Data Centres
Biznet Data Center
NTT Global Data Centers
Princeton Digital Group (PDG)
Data Center First
Explore our data center knowledge base profile to know more about the industry.
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