| Study Period | 2021 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 4.88 Billion |
| Market Size (2031) | USD 23.77 Billion |
| CAGR (2025 - 2031) | 30.19 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Data Center Processor Market Analysis
The Indonesia Data Center Processor Market size is estimated at USD 4.88 billion in 2025, and is expected to reach USD 23.77 billion by 2031, at a CAGR of 30.19% during the forecast period (2025-2031).
- Present Impact of AI in Indonesia: In Indonesia, AI is making significant strides across diverse sectors, including logistics, HR, education, cybersecurity, and customer service. By adopting AI, businesses not only enhance their operational efficiency but also offer AI-driven products that elevate client productivity. The Indonesian National AI Strategy (Stranas KA) for 2020-2045 sets the stage for AI's evolution, advocating for synergy among government entities, industries, academic institutions, and the broader community. To bridge the gap between public and private sectors, the AI Innovation Center, known as Pusat Inovasi Kecerdasan Artifisial (PIKA), has been inaugurated. Leading the charge in AI implementation is "Collaboration to Accelerate Indonesian Artificial Intelligence Innovation" (KORIKA), spearheaded by the Artificial Intelligence Industry Research and Innovation Collaboration.
- Investments by leading players in the industry towards digital economy: Telkomsel, Indonesia's premier digital telecommunications firm and its inaugural 5G service provider, has once again partnered with the Indonesian Ministry of Communications and Informatics (Kominfo). This time, in a cutting-edge 5G technology trial, Telkomsel collaborates with industry giants Ericsson and Qualcomm Technologies, Inc. The trial leverages the newly allocated frequency spectrums of 3.5 GHz and 26 GHz, granted specifically for this purpose by Kominfo. This endeavor builds upon their previous 5G extended-range technology trials, which showcased Ericsson’s mmWave extended range software, the Ericsson Massive MIMO AIR5322, and Qualcomm's Fixed Wireless Access Platform Gen 2 powered by the Snapdragon X65. With this expanded collaboration, Telkomsel is set to make history as the first in Indonesia to roll out the 5G Standalone NR-DC (Dual Connectivity). This initiative is expected to significantly enhance Indonesia's digital economy by enabling faster connectivity, supporting advanced digital services, and fostering innovation across industries.
- Future Scope of the Market: With over 175 million internet users and a burgeoning start-up ecosystem, Indonesia stands out as one of Southeast Asia's fastest-growing markets for public cloud services. Projections indicate that Indonesia will spearhead IT spending across the Asia-Pacific region during the forecast period. Indonesia's cloud and edge computing landscape is witnessing a surge, especially with the entry of global "hyper-scalers." Notable players making their mark in Indonesia include Alibaba Cloud, which has inaugurated its third data center; Google Cloud Platform, which has established its maiden facility in Jakarta; and Amazon Web Services, poised to unveil its cloud center next year. This rapid expansion of cloud infrastructure is expected to drive significant growth in the processor market, as demand for high-performance computing and data processing capabilities increases to support these developments.
Indonesia Data Center Processor Market Trends
High Performance Computing (HPC) Infrastructure Sees Surge in Demand, Fueled by AI
- As global breakthroughs in artificial intelligence (AI) unfold, Indonesia stands out. Bolstered by a youthful, tech-savvy populace and encouraging macroeconomic trends, Indonesian companies are capitalizing on AI's vast potential. This promise hasn't gone unnoticed, drawing the attention of both local and international investors to Southeast Asia's largest economy.
- Setting the trajectory for AI's growth, the Indonesia National AI Strategy (Stranas KA) 2020-2045 champions collaboration among government bodies, industries, academic institutions, and the wider community.
- AI's impact is palpable across diverse Indonesian sectors, from logistics and HR to education, cybersecurity, and customer service. Through AI integration, businesses are not only streamlining operations but also enhancing product offerings, significantly boosting client productivity. Furthermore, the adoption of AI is expected to drive advancements in CPUs, GPUs, and high-performance computing (HPC) within Indonesia, enabling faster processing, improved computational capabilities, and support for complex AI-driven applications.
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5G Processor Market Witnessing a Surge
- Technological Advancements: Advancements in semiconductor technology, such as miniaturized node sizes and heightened power efficiency, are bolstering 5G processors' capabilities.
- AI Integration: AI is now a staple in 5G processors, facilitating smarter data processing, predictive analytics, and enriched user experiences.
- Proliferation of 5G Devices: With the rise of 5G-enabled devices, spanning from smartphones to industrial machinery, the ecosystem is broadening, fueling the need for sophisticated processors.
- By June 2024, Indonesia's 5G network achieved average download speeds of 54.6 Mbps and upload speeds of 23.2 Mbps. Yet, these metrics trailed behind those of neighboring Southeast Asian countries, including Singapore, Malaysia, the Philippines, and Thailand, positioning Indonesia as the region's slowest in 5G download speeds.
- As 5G networks proliferate, the appetite for sophisticated processors is set to surge. In Indonesia, the growing adoption of 5G technology is expected to significantly boost the demand for advanced processors, driving market growth. The advent of technologies like 6G, edge computing, and quantum computing will not only propel the advancement of 5G processors but also unveil fresh opportunities for innovation and application within the Indonesian data center processor market.
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Indonesia Data Center Processor Industry Overview
- In the moderately consolidated landscape of Indonesia's data center processor market, five key players stand out. Leading the charge are Intel Corporation, PT Aplikanusa Lintasarta, NVIDIA Corporation, Qualcomm Incorporated, and Advanced Micro Devices Inc.
- Intel Indonesia has unveiled its 4th Gen Intel Xeon Scalable processors, codenamed Sapphire Rapids. These processors are designed for a range of applications, including modern data centers, Artificial Intelligence (AI), cloud services, networking, edge computing, and supercomputing. The newly launched processors are touted for their world-leading performance and hold the distinction of having the highest number of built-in accelerators of any CPU on the global market. They are engineered to tackle critical computing challenges spanning AI, analytics, networking, security, storage, and high-performance computing. For Indonesia, these processors are expected to enhance the efficiency and capabilities of local data centers, support the growing demand for AI and cloud services, and drive advancements in networking and edge computing. Additionally, this processor is positioned as Intel’s green solution for data centers, incorporating tools that align performance optimization and CPU resource management with sustainability goals, which aligns with Indonesia's increasing focus on sustainable development.
Indonesia Data Center Processor Market Leaders
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Intel Corporation
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NVIDIA Corporation
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Advanced Micro Devices Inc.
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PT Aplikanusa Lintasarta
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Qualcomm Incorporated
- *Disclaimer: Major Players sorted in no particular order
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Indonesia Data Center Processor Market News
- December 2024: In a significant move, BDx Indonesia, a collaboration of Indosat Ooredoo Hutchison (Indosat or IOH), Lintasarta, and BDx Data Centers (BDx), has unveiled an AI-centric data center park in Indonesia. The inaugural phase of the CGK4 AI campus, powered by renewable energy, boasts cutting-edge technology from NVIDIA’s AI and accelerated computing platform.
- June 2023: Intel Indonesia has rolled out its 4th Gen Intel Xeon Scalable processors, codenamed Sapphire Rapids, tailored for modern data centers, Artificial Intelligence (AI), cloud services, networking, edge computing, and supercomputing. The newly launched 4th Gen Intel Xeon Scalable processors boast world-leading performance, equipped with the highest number of built-in accelerators of any CPU globally. They're designed to address pivotal computing challenges in areas like AI, analytics, networking, security, storage, and high-performance computing. Furthermore, this processor stands out as Intel’s eco-friendly solution for data centers, featuring tools to optimize performance and CPU resources in line with sustainability objectives.
Indonesia Data Center Processor Industry Segmentation
- Data centers house and manage critical applications and data, using computing and storage networks for efficient delivery. Processors—GPUs, CPUs, and TPUs—are central to their operation. GPUs handle multitasking, excelling in graphics rendering and AI tasks. CPUs, with multi-core architecture, support parallel processing. TPUs, designed for machine learning, stand out from GPUs, which have transitioned from graphics to AI applications.
- Indonesia Data Center Processor Market is Segmented by Processor Type (CPU, GPU, FPGA, AI Accelerators), by Application (Advanced Data Analytics, AI/ML Training and Inferences, High Performance Computing, Security and Encryption, Network Functions, and Others), by Architecture (x86 and Non-x86 (ARM, Power and other processors), and by Data Center Type (Enterprise, Colocation and Cloud Service Providers). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).
| Market Segmentation - By Processor Type | GPU |
| CPU | |
| FPGA | |
| AI Accelerator | |
| Market Segmentation - By Application | Advanced Data Analytics |
| AI/ML Training and Inferences | |
| High Performance Computing | |
| Security and Encryption | |
| Network Functions | |
| Others | |
| Market Segmentation - By Architecture | x86 |
| Non-x86 (ARM, Power and other processors) | |
| Market Segmentation - By Data Center Type | Enterprise |
| Colocation | |
| Cloud Service Providers |
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Indonesia Data Center Processor Market Research FAQs
How big is the Indonesia Data Center Processor Market?
The Indonesia Data Center Processor Market size is expected to reach USD 4.88 billion in 2025 and grow at a CAGR of 30.19% to reach USD 23.77 billion by 2031.
What is the current Indonesia Data Center Processor Market size?
In 2025, the Indonesia Data Center Processor Market size is expected to reach USD 4.88 billion.
Who are the key players in Indonesia Data Center Processor Market?
Intel Corporation, NVIDIA Corporation, Advanced Micro Devices Inc., PT Aplikanusa Lintasarta and Qualcomm Incorporated are the major companies operating in the Indonesia Data Center Processor Market.
What years does this Indonesia Data Center Processor Market cover, and what was the market size in 2024?
In 2024, the Indonesia Data Center Processor Market size was estimated at USD 3.41 billion. The report covers the Indonesia Data Center Processor Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the Indonesia Data Center Processor Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
Indonesia Data Center Processor Industry Report
Statistics for the 2025 Indonesia Data Center Processor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Data Center Processor analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.
