The data centre market in Greater Jakarta has experienced significant growth and transformation. This can be seen from the expansion of capacity and the entry of new players, increasing the data centre capacity in Jakarta by more than doubled since the end of 2020.
Figure 1: Data centre cumulative supply in Greater Jakarta
Source: JLL Indonesia, 2024
This growth has been fueled by the entry of new players into the market. Both international and local players have recognised the potential of Greater Jakarta. Specifically, Equinix and EdgeConneX, two well-known global players, have made their mark in the Greater Jakarta data centre market. In addition to these global players, pan-APAC platforms like Digital Edge, Princeton Digital Group (PDG), STT GDC, and BDx have also contributed to the market’s growth. EdgeConneX, PDG, and BDx have chosen to expand their footprint through strategic mergers and acquisitions, while Equinix, STT GDC, and Digital Edge have opted for greenfield builds, leveraging joint ventures and partnerships to establish their operations. These new entrants have brought not only expertise and experience but also additional investments into the region’s data centre industry. Their presence further strengthens the market and enhances competition.
Expansion focuses on Jakarta CBD
Figure 2: Existing data centre distribution in Greater Jakarta based on operational capacity (MW)
Source: JLL Indonesia, 2024
Alongside the market growth, there is a noticeable trend regarding the location for data centre facilities. For the past years, the industrial estates on the eastern side of Greater Jakarta have been the most preferred location for data centres, especially hyperscalers. This is due to their access to infrastructure, large land availability, and lower land price. However, a recent trend has emerged, with more players turning towards the Jakarta CBD as a location for data centre development. In the first six months, newly operated facilities are taking place in the CBD Jakarta.
This shift towards the CBD is driven by its proximity to the key internet exchange point. By locating in the heart of Jakarta, data centres in the CBD can take advantage of faster connectivity and reduced latency. As a result, some players are being drawn to the CBD, acknowledging the strategic benefits it offers for their operations.
Future prospects and outlook
Amidst an optimistic market sentiment, the steady influx of new entrants has intensified competition in the Greater Jakarta market. Another hot topic is the surge of AI. Considering the current stage of market development, which includes substantial land reserves and ample power availability, there is potential for dedicated AI infrastructures to be established in new buildings and sites. Notably, Nvidia, a prominent US tech company, has announced plans to construct an AI centre in Indonesia. Looking ahead, the region’s socio-economic potential and digital transformation will continue to drive demand for data centres. As a result, the market is well-positioned for further growth and presents exciting opportunities.
