Indonesia data center power market size, share, growth drivers, trends, opportunities & forecast 2025–2030

Indonesia Data Center Power Market Overview

• The Indonesia Data Center Power Market is valued at USD 350 million, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for data storage and processing capabilities, fueled by the rapid digital transformation across various sectors, including e-commerce, finance, and telecommunications. The rise in internet penetration and mobile device usage has further accelerated the need for robust data center infrastructure, with cloud computing and AI-driven applications gaining significant traction in recent years .
• Key cities dominating the market include Jakarta, Surabaya, and Bandung. Jakarta, as the capital city, serves as the primary hub for technology and business, attracting significant investments in data center facilities. Surabaya and Bandung are also emerging as important locations due to their growing tech ecosystems and government support for digital infrastructure development. Jakarta alone hosts more than 70 percent of the country’s live data center racks, supported by its advanced fiber connectivity and enterprise client base .
• In 2023, the Indonesian government implemented the "National Data Center Development Plan," which aims to enhance the country's data center capabilities. This initiative includes a budget allocation of USD 1.8 billion for ICT development, with a significant portion directed toward improving energy efficiency and promoting the use of renewable energy sources in data centers, ensuring sustainable growth in the sector .

Indonesia Data Center Power Market Segmentation

By Component:The components of the market include various essential technologies that support data center operations. The primary subsegments are UPS Systems, Generators (Diesel, Gas, Hydrogen Fuel-cell), Power Distribution Units (PDUs), Switchgear & Transfer Switches, Remote Power Panels, Energy Storage Systems, and Others. Among these, UPS Systems are particularly crucial as they ensure uninterrupted power supply, which is vital for data center reliability. UPS Systems held a market share of 28.4 percent in 2024, reflecting their critical role in mitigating grid volatility and ensuring seamless fail-over. Power Distribution Units are also gaining traction due to rising demand for intelligent, high-density power distribution in AI and hyperscale environments .

By Application:The applications of data center power solutions encompass various operational needs, including IT Equipment, Cooling, Lighting, Power Backup, and Others. IT Equipment is the dominant application, as it requires substantial power for servers, storage devices, and networking equipment, which are critical for data processing and management. The IT Equipment segment held a market share of 50 percent in 2024, driven by the rapid expansion of hyperscale and colocation data centers, as well as the growing demand for cloud computing and AI-driven workloads .

Indonesia Data Center Power Market Competitive Landscape

The Indonesia Data Center Power Market is characterized by a dynamic mix of regional and international players. Leading participants such as PT DCI Indonesia Tbk, PT Telkom Data Ekosistem (NeutraDC), PT Indosat Tbk (Indosat Ooredoo Hutchison), PT XL Axiata Tbk, PT NTT Indonesia, PT Cyber CSF, PT Lintasarta, PT CBN Data Utama, PT Biznet Data Center (Biznet Gio), PT Princeton Digital Group Indonesia, PT Equinix Indonesia, PT EdgeConneX Indonesia, PT SpaceDC Indonesia, PT Elitery Data Center, PT Vantage Data Centers Indonesia contribute to innovation, geographic expansion, and service delivery in this space.

Indonesia Data Center Power Market Industry Analysis

Growth Drivers

• Increasing Demand for Cloud Services:The Indonesian cloud services market is projected to reach $1.5 billion by in future, driven by a surge in digital transformation initiatives. With over 60% of businesses adopting cloud solutions, the demand for data center power is expected to rise significantly. This trend is supported by the increasing internet penetration rate, which reached 77% in recent periods, further fueling the need for robust data center infrastructure to support cloud operations.
• Expansion of E-commerce Platforms:Indonesia's e-commerce sector is anticipated to grow to $130 billion by in future, creating a substantial demand for data center power. The rapid growth of online shopping, with over 90 million users in recent periods, necessitates enhanced data processing capabilities. This expansion drives investments in data centers, as companies require reliable power sources to manage increased traffic and transaction volumes, ensuring seamless customer experiences.
• Government Initiatives for Digital Transformation:The Indonesian government has allocated $1 billion for digital infrastructure development as part of its in future budget. This initiative aims to enhance connectivity and promote digital services across various sectors. By fostering a conducive environment for technology adoption, the government is driving the demand for data centers, which require substantial power resources to support the growing digital ecosystem and improve overall efficiency.

Market Challenges

• High Energy Costs:Indonesia faces significant energy costs, with electricity prices averaging $0.10 per kWh in recent periods. This high cost poses a challenge for data center operators, who require substantial power to maintain operations. The reliance on fossil fuels for energy generation further exacerbates the issue, leading to increased operational expenses and potentially limiting the growth of data center facilities in the region.
• Regulatory Hurdles:The regulatory environment in Indonesia presents challenges for data center operators, with complex licensing requirements and compliance issues. It is estimated that over 30% of data center projects face delays due to regulatory approvals in recent periods. These hurdles can hinder investment and slow down the establishment of new facilities, impacting the overall growth of the data center power market in the country.

Indonesia Data Center Power Market Future Outlook

The future of the Indonesia Data Center Power Market appears promising, driven by increasing digitalization and technological advancements. As businesses continue to embrace cloud computing and e-commerce, the demand for data center power is expected to rise. Additionally, the government's commitment to enhancing digital infrastructure will likely create a favorable environment for investment. However, addressing energy costs and regulatory challenges will be crucial for sustainable growth, ensuring that the market can meet the evolving needs of the digital economy.

Market Opportunities

• Growth in Renewable Energy Adoption:With Indonesia's renewable energy capacity projected to reach 23% of the total energy mix in future, data centers can leverage this shift. Utilizing renewable sources can reduce operational costs and enhance sustainability, appealing to environmentally conscious consumers and businesses alike, thus creating a competitive advantage in the market.
• Development of Smart Data Centers:The rise of smart data centers, which utilize AI and IoT technologies for efficient operations, presents a significant opportunity. A reduction in energy consumption can be achieved through the implementation of smart technologies in future, allowing operators to optimize resource use and improve service delivery, thereby attracting more clients and enhancing profitability.