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Indonesia Data Center Server Market Size (2024 - 2029)

The Indonesia data center server market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium enterprises, 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 the construction of IT load capacity, raised floor space, and the installation of racks, particularly concentrated in Greater Jakarta. Additionally, the development of submarine cable systems is set to enhance connectivity, further supporting the market's growth trajectory.

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Market Size of Indonesia Data Center Server Industry

Indonesia Data Center Server Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 2.72 Billion
Market Size (2029) USD 5.96 Billion
CAGR (2024 - 2030) 14.00 %
Market Concentration High

Major Players

Indonesia Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

Indonesia Data Center Server Market Analysis

The Indonesia Data Center Server Market size is estimated at USD 2.72 billion in 2024, and is expected to reach USD 5.96 billion by 2029, growing at a CAGR of 14% during the forecast period (2024-2029).

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 the country/region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Indonesia data center market is expected to reach 1400 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 4.4 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 218K units by 2029. Greater Jakarta is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 14 submarine cable systems connecting Indonesia, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Asia Connect Cable-1 (ACC-1), which stretches over 18,000 Kilometers with landing points from Batam, Jakarta, Makassar, and Manado.

Indonesia Data Center Server Industry Segmentation

A data center server is basically a high-capacity computer computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The Indonesia data center server market is segmented by form factor (blade server, rack server, tower server) and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Form Factor
Blade Server
Rack Server
Tower Server
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User
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Indonesia Data Center Server Market Size Summary

The Indonesia data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments from local players. The market is characterized by a robust expansion in IT load capacity, raised floor space, and the number of racks, particularly in Greater Jakarta. The development of submarine cable systems, such as the Asia Connect Cable-1, is further enhancing connectivity and supporting the burgeoning data center infrastructure. The telecom sector is a major contributor to this growth, with rising network traffic and the rollout of 4G and 5G technologies prompting telecom vendors to invest heavily in data center capabilities. Collaborations, such as the one between Telkomsel and Gojek, highlight the strategic partnerships forming to bolster mobile services and digital transformation.

The market is also witnessing a shift towards rack servers, favored for their compactness and efficiency in data center environments. Regulatory frameworks, such as those issued by Bank Indonesia, have compelled financial institutions to adopt data center services to meet compliance and enhance customer service offerings. The fintech sector is also leveraging data centers to improve business performance and data management. The cloud market in Indonesia, although in its early stages, is one of the fastest-growing in the Asia-Pacific region, attracting investments from major players like Google, Alibaba, and Amazon. Government initiatives aimed at digitalization and industry modernization are further driving the demand for data centers. The market is consolidated, with key players like Hewlett Packard Enterprise, Dell Inc., and IBM Corporation focusing on expanding their market share through strategic collaborations and technological advancements.

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Indonesia Data Center Server Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increased Adoption of FTTx (Fibre to the X) Connectivity and 5G Deployment

      2. 1.2.2 Adoption for Online Banking Services

    3. 1.3 Market Restraints

      1. 1.3.1 High CaPex for Building Data Center Along With Security Challenges

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-User

Indonesia Data Center Server Market Size FAQs

The Indonesia Data Center Server Market size is expected to reach USD 2.72 billion in 2024 and grow at a CAGR of 14% to reach USD 5.96 billion by 2029.

In 2024, the Indonesia Data Center Server Market size is expected to reach USD 2.72 billion.

Indonesia Data Center Server Market Report Snapshots

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