Indonesia Data Center Colocation Market - Supply & Demand Analysis 2026-2031

Indonesia data center colocation market is expected to grow at a CAGR of 14.36% from 2025 to 2031.

INDONESIA DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED AREA

The Indonesia data center colocation market by utilized area is expected to reach 8.01 million square feet by 2031. The high utilization rate reflects strong demand from hyperscale cloud providers and AI workloads, prompting operators to continue expanding their existing campuses and developing new facilities across the country.

Greater Jakarta continues to dominate Indonesia's data center development, driven by the availability of digital infrastructure, enterprise demand, and cloud connectivity, while Bekasi and Karawang are emerging as preferred hyperscale development locations due to lower land acquisition costs compared with Central Jakarta. Developers are increasingly selecting suburban industrial corridors such as Bekasi and Karawang, where land prices are significantly lower than Central Jakarta, enabling the construction of large campus-style facilities with room for future expansion.

INDONESIA DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED RACKS

The Indonesia data center colocation market by utilized racks is expected to reach 198 thousand units by 2031. The rapid adoption of AI and generative AI workloads is expected to significantly increase rack power densities in Indonesia, with hyperscale operators increasingly deploying racks exceeding 50-100 kW. Consequently, developers are investing in liquid cooling technologies, higher-capacity UPS systems, and advanced power distribution infrastructure to support next-generation AI clusters.

INDONESIA DATA CENTER COLOCATION MARKET TRENDS & DRIVERS

Adoption of Liquid Cooling among Data Centers

The growing deployment of AI-ready infrastructure is accelerating the shift toward liquid cooling across Indonesia's data center market. As operators develop high-density facilities capable of supporting advanced GPU workloads, liquid cooling is expected to become a standard feature in future hyperscale and colocation data center developments.

In October 2025, BW Digital completed the structural framework of its NDP1 data center in Batam. The facility has been engineered with direct-to-chip liquid cooling capabilities from the initial deployment phase to support AI-focused infrastructure.

In March 2025, SM+ began construction of its SMX01 facility in Jakarta. The data center has been designed with on-demand advanced liquid-cooling infrastructure to efficiently support high-density enterprise and AI applications.

Geographic Expansion improving redundancy, reducing latency, and supporting regional enterprises

In May 2026, DCI Indonesia secured a $980.9-million credit facility to accelerate the construction of new data centers and meet increasing customer demand across the country. The company also inaugurated its 9-MW E2 Surabaya facility, expanding digital infrastructure beyond Jakarta to strengthen regional capacity, edge deployments, and AI-ready services.

In 2025, Digital Realty entered Indonesia through a joint venture with Bersama Digital Infrastructure Asia and acquired two operational facilities in Jakarta. The expansion marked the company's entry into one of Southeast Asia's fastest-growing colocation markets and strengthened international investment in Indonesia's digital infrastructure.

Operators are increasingly expanding beyond Jakarta into emerging locations such as Batam and Surabaya to improve geographic redundancy, reduce latency, and support regional enterprise and cloud workloads. These locations are attracting investments due to their strategic connectivity and growing demand for edge infrastructure.

INDUSTRY RESTRAINT

Power Availability & Outage Challenges

Reliable power availability remains one of the key challenges for data center development in Indonesia. Although major data center hubs such as Jakarta and Batam have relatively developed power infrastructure, power availability and grid reliability vary significantly across the country, particularly in secondary cities and outer islands. Developers often need to invest in dedicated substations, backup generators, and redundant power systems to meet uptime requirements.

Indonesia's rapidly growing cloud, AI, and colocation sectors are increasing electricity demand at a pace that puts pressure on the national power grid. Large-scale hyperscale and AI data center projects require hundreds of megawatts of power capacity, creating challenges in securing long-term power allocations and grid connections.

The Indonesian government and state-owned utility, PLN, are investing in grid expansion and power infrastructure upgrades to support hyperscale developments. For instance, PLN Batam signed power supply agreements of 90 MVA for NeutraDC's facility and 511 MVA for DayOne's hyperscale campus in Batam, demonstrating the growing need for dedicated power infrastructure to support large-scale data center developments.

Continued investments in transmission infrastructure, grid modernization, renewable energy integration, and dedicated power supply arrangements will be essential to ensure reliable electricity availability and support Indonesia's rapidly expanding data center market.

INDONESIA DATA CENTER COLOCATION MARKET SEGMENTATION INSIGHTS

INSIGHTS BY COLOCATION DEMAND

Based on the colocation demand by industry, in 2025, the cloud & IT sector accounted for the largest share of Indonesia's colocation demand, contributing around 30% to the total demand. Growth is driven by rapid cloud migration, hyperscale cloud expansion, SaaS adoption, AI workloads, and increasing enterprise digital transformation initiatives. Going forward, demand is expected to increasingly focus on AI-ready infrastructure rather than conventional cloud deployments. Hyperscale operators are expected to deploy high-density AI clusters, liquid cooling technologies, and GPU-based computing infrastructure, significantly increasing colocation requirements across Indonesia.

INSIGHTS BY COLOCATION REVENUE

Based on revenue, retail colocation generated over 68% of the market's total revenue in 2025, while the wholesale segment is projected to expand to nearly 47% by 2031. This shift is primarily driven by rising hyperscale deployments, increasing wholesale leasing activity, and continued cloud adoption. The expansion of hyperscale self-owned data centers, particularly those being developed by Microsoft, is also expected to influence Indonesia's colocation market. As more cloud workloads are hosted in company-owned facilities rather than third-party colocation sites, the demand pattern for colocation services is expected to gradually shift.

WHAT'S INCLUDED?

• A transparent research methodology and insights on the colocation demand and supply aspect of the market.
• Market size available in terms of utilized white floor area, IT power capacity, and racks.
• Market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity along with the occupancy%.
• The study of the existing Indonesia data center market landscape, and insightful predictions about data center market size during the forecast period.
• An analysis of the current and future colocation demand in Indonesia by several industries.
• The study on sustainability status in Indonesia.
• Analysis of current and future cloud operations in Indonesia.
• The snapshot of upcoming submarine cables in Indonesia.
• Snapshot of existing and upcoming third-party data center facilities in Indonesia.
• Facilities Covered (Existing): 90
  • Facilities Identified (Upcoming): 26
  • Coverage: 15+ Regions
  • Existing vs. Upcoming (White Floor Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Indonesia.
  • Colocation Market Revenue & Forecast (2025-2031)
  • Retail Colocation Revenue (2025-2031)
  • Wholesale Colocation Revenue (2025-2031)
  • Retail Colocation Pricing along with Addons
  • Wholesale Colocation Pricing along with the pricing trends.
• An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the colocation data center industry in Indonesia.
• Competitive landscape including market share analysis by the colocation operators based on IT power capacity and revenue.
• Vendor landscape of each existing and upcoming colocation operator based on existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.

The report includes:

• Colocation Supply (MW, Area, Rack Capacity)
• Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc.)
• Colocation Revenue (Retail & Wholesale Colocation Services)
• Competitive Scenario (Share Analysis by Revenue & MW Capacity)

VENDOR LANDSCAPE

Existing Colocation Operators

• BDx Data Centers
• Biznet Data Center
• DayOne
• Digital Edge DC (INDONET)
• EdgeConneX
• MettaDC
• NTT DATA
• Princeton Digital Group
• SM+
• ST Telemedia Global Data Centres
• Bitera DC
• Cyber Data Center International
• Datacomm
• DCI Indonesia
• Digital Hyperspace Indonesia
• Digital Realty Bersama
• (DTP) PT. Dwi Tunggal Putra
• Elitery
• Equinix
• Gaw Capital
• Indokeppel Data Centres
• PT. Internetindo Data Centra Indonesia (IDC Indonesia)
• K2 Strategic
• Moratelindo Nusantara Data Center (NDC)
• NEX
• Pure Data Centres
• Telkom Indonesia

New Operators

• BW Digital
• Aslan Energy Capital
• DAMAC Digital
• Racks Central
• SEAX Global

KEY QUESTIONS ANSWERED:

1. What is the count of existing and upcoming colocation data center facilities in Indonesia?

2. How much MW of IT power capacity is likely to be utilized in Indonesia by 2031?

3. What factors are driving Indonesia data center colocation market?

4. Who are the new entrants in the Indonesia data center industry?