logo

Indonesia Data Center Construction Market Size (2024 - 2029)

The Indonesia Data Center Construction Market is poised for significant growth, driven by the expansion of the digital economy and increasing demand for data services and infrastructure. Despite its lower competitive index compared to other Southeast Asian nations, Indonesia presents substantial commercial opportunities for data center development. The rapid rise of start-ups and a growing population are contributing to the demand for hyper-scale data centers. The COVID-19 pandemic has further underscored the importance of data centers in supporting the online workplace, prompting global vendors to invest in the Indonesian market. This growth trajectory is supported by the country's robust internet penetration and mobile usage, which are key factors in the burgeoning e-commerce sector.

Home Market Analysis Technology, Media and Telecom Research Information Technology Research Indonesia Data Center Construction Market Market Size

Market Size of Indonesia Data Center Construction Industry

Indonesia Data Center Construction Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 2.60 Billion
Market Size (2029) USD 6.70 Billion
CAGR (2024 - 2030) 17.19 %
Market Concentration Medium

Major Players

Indonesia Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Indonesia Data Center Construction Market Analysis

The Indonesia Data Center Construction Market size is estimated at USD 2.60 billion in 2024, and is expected to reach USD 6.70 billion by 2029, growing at a CAGR of 17.19% during the forecast period (2024-2029).

  • The Indonesian data center construction market is experiencing notable growth, propelled by the surge in digitalization, increasing connectivity, and other market-driving factors.
  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Indonesian data center construction market is expected to reach 1,490 MW by 2030.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 5.3 million sq. ft by 2030.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 267 thousand units by 2030.
  • Planned Submarine Cables: Close to 50 submarine cable systems connect Indonesia, and many are under construction. One such submarine cable, estimated to be built by the end of 2026, is Apricot, which stretches over 11,972 km with landing points in Batam, Indonesia and Tanjung Pakis, Indonesia.

Indonesia Data Center Construction Industry Segmentation

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.

The Indonesian data center construction market is segmented by infrastructure (electrical infrastructure [power distribution solutions (PDUs, transfer switches, switchgear, power panels and components, and other power distribution solutions), power backup solutions (UPS and generators), and services (design and consulting, integration, and support and maintenance)], mechanical infrastructure [cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, and in-row and in-rack cooling), racks, and other mechanical infrastructures], and general construction), tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services, and insurance, IT and telecommunications, government and defense, healthcare, and other end users). The market sizes and forecasts are provided in terms of value (USD) for the above segments.

Market Segmentation - By Infrastructure
Market Segmentation - By Electrical Infrastructure
Power Distribution Solution
PDUs - Basic and Smart - Metered and Switched Solutions
Transfer Switches
Static
Automatic (ATS)
Switchgear
Low-voltage
Medium-voltage
Power Panels and Components
Others
Power Backup Solutions
UPS
Generators
Service (Design and Consulting, Integration, and Support and Maintenance)
Market Segmentation - By Mechanical Infrastructure
Cooling Systems
Immersion Cooling
Direct-to-chip Cooling
Rear Door Heat Exchanger
In-row and In-rack Cooling
Racks
Other Mechanical Infrastructures
General Construction
Market Segmentation - By Tier Type
Tier-I and-II
Tier-III
Tier-IV
Market Segmentation - By End User
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Healthcare
Other End Users
Need A Different Region Or Segment?
Customize Now

Indonesia Data Center Construction Market Size Summary

The Indonesia data center construction market is poised for significant growth, driven by the expanding digital economy and increasing demand for data services and infrastructure. Despite its lower ranking in the competitive index compared to other Southeast Asian nations, Indonesia offers substantial commercial potential for data center operators. The country's burgeoning start-up ecosystem, coupled with a rapidly growing population, is fueling the development of hyper-scale data centers. The COVID-19 pandemic has further underscored the importance of data centers, prompting global vendors to expand their presence in Indonesia. Notable investments, such as Smartfren's partnership with UAE's G42 to build a large-scale data center, highlight the country's strategic focus on enhancing its digital infrastructure and maintaining data sovereignty.

The market is characterized by a shift towards tier 3 and tier 4 data centers, which are increasingly preferred due to their ability to provide uninterrupted services and enhanced efficiency. The tier 3 segment currently holds a significant market share, while the tier 4 segment is expected to experience the highest growth. The demand for these advanced facilities is driven by the need for business continuity and the growing presence of global conglomerates. Major players in the market, including NTT Communications Corporation, PT DCI Indonesia, and Telkomsigma, are actively expanding their operations to meet the rising demand for high-capacity data centers. Recent developments, such as the launch of new facilities and strategic partnerships, underscore the dynamic nature of the Indonesian data center construction market, which is set to continue its upward trajectory in the coming years.

Explore More

Indonesia Data Center Construction Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 Market Segmentation - By Infrastructure

      1. 1.1.1 Market Segmentation - By Electrical Infrastructure

        1. 1.1.1.1 Power Distribution Solution

          1. 1.1.1.1.1 PDUs - Basic and Smart - Metered and Switched Solutions

          2. 1.1.1.1.2 Transfer Switches

            1. 1.1.1.1.2.1 Static

            2. 1.1.1.1.2.2 Automatic (ATS)

          3. 1.1.1.1.3 Switchgear

            1. 1.1.1.1.3.1 Low-voltage

            2. 1.1.1.1.3.2 Medium-voltage

          4. 1.1.1.1.4 Power Panels and Components

          5. 1.1.1.1.5 Others

        2. 1.1.1.2 Power Backup Solutions

          1. 1.1.1.2.1 UPS

          2. 1.1.1.2.2 Generators

        3. 1.1.1.3 Service (Design and Consulting, Integration, and Support and Maintenance)

      2. 1.1.2 Market Segmentation - By Mechanical Infrastructure

        1. 1.1.2.1 Cooling Systems

          1. 1.1.2.1.1 Immersion Cooling

          2. 1.1.2.1.2 Direct-to-chip Cooling

          3. 1.1.2.1.3 Rear Door Heat Exchanger

          4. 1.1.2.1.4 In-row and In-rack Cooling

        2. 1.1.2.2 Racks

        3. 1.1.2.3 Other Mechanical Infrastructures

      3. 1.1.3 General Construction

    2. 1.2 Market Segmentation - By Tier Type

      1. 1.2.1 Tier-I and-II

      2. 1.2.2 Tier-III

      3. 1.2.3 Tier-IV

    3. 1.3 Market Segmentation - By End User

      1. 1.3.1 Banking, Financial Services, and Insurance

      2. 1.3.2 IT and Telecommunications

      3. 1.3.3 Government and Defense

      4. 1.3.4 Healthcare

      5. 1.3.5 Other End Users

Indonesia Data Center Construction Market Size FAQs

The Indonesia Data Center Construction Market size is expected to reach USD 2.60 billion in 2024 and grow at a CAGR of 17.19% to reach USD 6.70 billion by 2029.

In 2024, the Indonesia Data Center Construction Market size is expected to reach USD 2.60 billion.

Indonesia Data Center Construction Market Report Snapshots

Indonesia Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)