The Greater Jakarta data center market is witnessing significant expansion, with colocation inventory skyrocketing from 150 MW in 2021 to over 400 MW by the first half of 2025, according to a new report from JLL. This growth reflects the joint efforts of both established players and newcomers, including Equinix, which has launched its inaugural data center in Jakarta through a partnership with PT Astra International. Other notable entrants are Digital Realty Bersama and Digital Hyperspace, alongside ongoing expansions from DCI Indonesia.
In this dynamic landscape, STT Telemedia Global Data Centres has not only topped out its second data center but has also broken ground on a third facility. This ambitious project forms part of a larger campus aimed at delivering an impressive 90 MW of power capacity.
While eastern Greater Jakarta has long been the favored locale for hyperscalers, a notable shift in interest is occurring towards Jakarta’s CBD, where the majority of new construction projects are currently underway. Illustrating this trend further, LG Sinar Mas Joint Venture recently commenced construction on an AI-Optimized Data Centre in Jakarta, with expectations for it to be operational by 2026.
Occupancy rates in existing colocation facilities hover around 70-80%, largely fueled by demand from cloud service providers, financial institutions, e-commerce giants, and over-the-top (OTT) platforms like gaming, streaming, and social media. While the specific demand for AI applications remains modest, the expanding landscape of cloud services and Indonesia’s ongoing digital transformation could catalyze future AI adoption across various sectors.
As the digital economy flourishes alongside a burgeoning middle class, users can expect an accelerated uptake of cloud services. Financial institutions must brace for evolving data sovereignty regulations and compliance requirements, while e-commerce platforms will require enhanced capacities for managing increased transaction volumes and leveraging analytics.
On the provider side, navigating infrastructure challenges will necessitate innovative solutions to ensure reliable power and connectivity. As activities in Jakarta’s CBD ramp up, strategic location selection will become paramount for providers. Additionally, as environmental regulations tighten, incorporating sustainability features into facilities will be crucial for competitive differentiation.
What factors are driving the expansion of colocation inventory in Greater Jakarta?
The growth is primarily fueled by the increasing demand from cloud service providers, financial institutions, and e-commerce companies, which are all looking to expand their digital capabilities.
How is the shift in location preference impacting the data center market?
While eastern Greater Jakarta has traditionally been preferred, a growing interest in Jakarta’s CBD is influencing investment decisions, leading to more under-construction projects in this area.
What future trends could shape the data center landscape in Indonesia?
The ongoing digital transformation and increasing adoption of cloud services are likely to drive future growth, while sustainability considerations and regulatory compliance will play crucial roles in how the market evolves.
