Indonesia Data Center Cooling Market Size (2024 - 2029)

The Indonesia data center cooling market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium enterprises, stringent government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including a substantial increase in IT load capacity, raised floor areas, and the number of racks installed. The climatic conditions across Indonesia, with average temperatures ranging from 23 to 28 degrees Celsius, play a crucial role in data center cooling strategies. Additionally, the extensive network of submarine cable systems, with many more under construction, further supports the market's growth trajectory.

Market Size of Indonesia Data Center Cooling Industry

Indonesia Data Center Cooling Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 87.82 Million
Market Size (2030) USD 271.56 Million
CAGR (2024 - 2030) 20.70 %
Market Concentration Medium

Major Players

Indonesia Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Indonesia Data Center Cooling Market Analysis

The Indonesia Data Center Cooling Market size is estimated at USD 87.82 million in 2024, and is expected to reach USD 271.56 million by 2030, growing at a CAGR of 20.70% during the forecast period (2024-2030).

  • The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in Indonesia.
  • The upcoming IT load capacity of the Indonesian data center market is expected to reach more than 1400 MW by 2030. The country's construction of raised floor area is expected to increase above 4.3 million sq. ft by 2030.
  • The country's total number of racks to be installed is expected to reach above 2,18,000 units by 2030. Greater Jakarta is expected to house the maximum number of racks by 2030. The average annual temperature in Indonesia ranges between 23 degrees Celsius and 28 degrees Celsius. Growing hyperscale demand is expected to increase the penetration of liquid cooling solutions in Indonesia in the coming years.
  • There are close to 58 submarine cable systems connecting Indonesia, and many are under construction. Indonesia is the world's largest archipelago (group of islands), comprising over 17,000 islands, making it a challenging terrain for building even a telecommunication network. Central Indonesia, predominantly the Greater Jakarta hotspot region, is more developed in terms of economic, physical, and digital infrastructure, making it more suitable for constructing data centers. During 2017-2022, 15 data center facilities with a combined IT load capacity of ~100 MW were commissioned, which helped the Greater Jakarta region surpass the market share of 50% in the Indonesian market.

Indonesia Data Center Cooling Industry Segmentation

Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as data center facilities house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.

The Indonesian data center cooling market is segmented by technology (air-based cooling (chiller and economizer, CRAH, cooling towers, and other cooling technology), liquid-based cooling (immersion cooling, direct-to-chip cooling, and rear-door heat exchanger)), type of data center (hyperscaler, enterprise, and colocation), and end-user industry (IT & telecom, retail & consumer goods, healthcare, media & entertainment, federal & institutional agencies, and other end-users). The market sizes and forecasts are provided in USD values for all the above segments.

By Cooling Technology
Air-based Cooling
Chiller and Economizer
CRAH
Cooling Tower (Covers Direct, Indirect, and Two-stage Cooling)
Other Cooling Technology
Liquid-based Cooling
Immersion Cooling
Direct-to-Chip Cooling
Rear-Door Heat Exchanger
By Type
Hyperscaler (Owned & Leased)
Enterprise (On-premise)
Colocation
By End-user Vertical
IT & Telecom
Retail & Consumer Goods
Healthcare
Media & Entertainment
Federal & Institutional agencies
Other End Users
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Indonesia Data Center Cooling Market Size Summary

The Indonesia data center cooling market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments by local players. The country's digital economy is poised for expansion, with initiatives like the 100 Smart Cities Movement and Go Digital Vision 2020 spearheading digital transformation. These efforts are supported by the government's Digital Indonesia 2021-2024 Strategy, which focuses on enhancing digital infrastructure and governance. The telecommunication sector, bolstered by the adoption of 5G networks, is expected to contribute to the rising demand for data center facilities, necessitating advanced cooling solutions to manage the heat generated by increased server activity.

Technological advancements in cooling solutions, particularly liquid cooling, are playing a crucial role in meeting the demands of high-density data centers. Liquid cooling offers superior heat transfer properties, making it more efficient than traditional air cooling systems, especially in tropical climates like Indonesia. The market is moderately competitive, with major players such as Stulz GmbH, Schneider Electric SE, and Vertiv Group Corp. leading the charge in providing sustainable and efficient cooling systems. Recent innovations, such as the use of low global warming potential refrigerants and advanced direct liquid cooling systems, underscore the industry's commitment to sustainability and efficiency. As the digital landscape in Indonesia continues to evolve, the demand for effective data center cooling solutions is expected to grow, aligning with the country's ambitious digital transformation goals.

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Indonesia Data Center Cooling Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Key Cost Considerations for Cooling

      1. 1.2.1 Analysis of Key Cost Overheads Related to DC Operations with an Eye on DC Cooling

      2. 1.2.2 Comparative Study of the Cost and Operational Considerations Related to Each Cooling Technology (Based on Key Factors such as Design Complexity, PUE, Advantages, Drawbacks, and Extent of Utilization of Natural Weather Conditions)

      3. 1.2.3 Key Innovations and Developments in Data Center Cooling

      4. 1.2.4 Key Energy Efficiency Practices Adopted in Data Centers

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Cooling Technology

      1. 2.1.1 Air-based Cooling

        1. 2.1.1.1 Chiller and Economizer

        2. 2.1.1.2 CRAH

        3. 2.1.1.3 Cooling Tower (Covers Direct, Indirect, and Two-stage Cooling)

        4. 2.1.1.4 Other Cooling Technology

      2. 2.1.2 Liquid-based Cooling

        1. 2.1.2.1 Immersion Cooling

        2. 2.1.2.2 Direct-to-Chip Cooling

        3. 2.1.2.3 Rear-Door Heat Exchanger

    2. 2.2 By Type

      1. 2.2.1 Hyperscaler (Owned & Leased)

      2. 2.2.2 Enterprise (On-premise)

      3. 2.2.3 Colocation

    3. 2.3 By End-user Vertical

      1. 2.3.1 IT & Telecom

      2. 2.3.2 Retail & Consumer Goods

      3. 2.3.3 Healthcare

      4. 2.3.4 Media & Entertainment

      5. 2.3.5 Federal & Institutional agencies

      6. 2.3.6 Other End Users

Indonesia Data Center Cooling Market Size FAQs

The Indonesia Data Center Cooling Market size is expected to reach USD 87.82 million in 2024 and grow at a CAGR of 20.70% to reach USD 271.56 million by 2030.

In 2024, the Indonesia Data Center Cooling Market size is expected to reach USD 87.82 million.

Indonesia Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)