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View all search resultsIndonesia’s data center push gains ground, but faces execution test
Industry players warned that the government still needs to address existing challenges, including bottlenecks in equipment imports and delays in infrastructure construction.
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The construction of Digital Edge Indonesia data center in Cikarang, West Java is underway in this undated picture. State power producer PT PLN is set to supply 2x725 megavolts of electricity to support the operation of the country’s largest data center. (Antara/PT PLN)
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ndustry players said Indonesia has the resources needed to emerge as a major data center hub in Southeast Asia, as established markets such as Singapore and Malaysia face growing constraints on land and power supply. However, they warned that the government still needs to address existing challenges, including bottlenecks in equipment imports and delays in infrastructure construction.
State asset fund Danantara is ready to expand its investment in data center infrastructure amid strong demand, according to its CTO, Sigit Puji Santosa. He said Indonesia currently has around 45 large-scale data centers, but capacity remains tight, with new facilities quickly being absorbed by the market.
“If we build 100 megawatts or 200 megawatts, it will be fully taken up immediately,” he said on Aug. 27, as quoted by Antara.
“Demand for data centers is exceptionally strong, creating a shortage in capacity. Customers have to wait six months, nine months or even a year [to get supply],” he said.
CEO of data-center operator BDx Agus Hartono Wijaya said Indonesia has an advantage over regional peers because of its relatively abundant availability of land, electricity and water, which are becoming increasingly important as demand shifts toward artificial intelligence infrastructure.
“Indonesia has the main ingredients to become the [center] of GPU-based [data center] development,” Agus said to The Jakarta Post on Aug. 26.
Singapore has built its position as a regional connectivity hub, but land and power constraints have increasingly limited data-center expansion. Johor in Malaysia, which emerged as an extension of Singapore’s market, is now facing similar constraints, particularly on power, Agus said.
