Indonesia Becomes a Prime Data Center Investment Destination, Demand Grows 16.8% Annually

Indonesia, with its rapidly growing digital economy, is drawing significant attention from data center investors. According to the latest report from JLL, the global data center sector is experiencing significant expansion, and Indonesia has not been left behind in this trend. It is projected that by 2030, global data center capacities will double, driven by the development of artificial intelligence (AI), which is becoming the main driver of transformation in this industry. In this article, we examine how Indonesia is benefiting from this global dynamics and how the local market is preparing to meet future challenges and opportunities.

According to the Ministry of Communications and Digital Technologies, Indonesia’s data center industry is expected to grow 14% annually until 2028, while the World Bank forecasts demand to grow by 16.8% per annum. This indicates strong long-term prospects for the sector, making it attractive for global investors. Indonesia is also seen as an ideal platform for real estate investment diversification, offering sustainable growth compared to traditional sectors such as logistics, healthcare, and education.

The rapid adoption of AI in Indonesia is driving increased demand for high-capacity and scalable digital infrastructure, which plays a key role in the growth of the national digital economy. This rise highlights the need for long-term planning in data center development. Specifically, issues of electricity supply, improved network connectivity, and workforce readiness become critical factors in maintaining Indonesia’s competitiveness as a leading destination for data center investments.

Analysts emphasize the need to strengthen infrastructure, including access to power and clean water, as well as the development of local talent to maintain competitiveness. Investors are expected to continue exploring new opportunities in Indonesia’s data center market, as technological and infrastructure innovations continue to drive sector growth.