Indonesia Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030
Industry: ICT & Media | Publish Date: 06-Nov-2024 | No of Pages: 77 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : IC2442
Indonesia Data Center Market Overview
The Indonesia Data Center Market size was valued at USD 1.45 billion in 2023, and is predicted to reach USD 3.09 billion by 2030, at a CAGR of 11.4% from 2024 to 2030.
The data center market, also referred to as the network infrastructure market, encompasses the comprehensive lifecycle of specialized infrastructure dedicated to hosting computing systems. This lifecycle spans from initial planning and construction to ongoing operation and maintenance. It comprises a diverse array of components, including servers, storage systems, and networking gear, collectively offer services such as cloud computing and connectivity solutions. Presently, the industry is witnessing widespread adoption of cloud services, accompanied by the emergence of edge computing aimed at reducing latency.
Key trends shaping the market include a heightened focus on sustainability, increased concerns regarding cybersecurity, the integration of hybrid and multi-cloud approaches, and the growing influence of 5G networks. These trends underscore the industry's proactive response to meet the escalating demand for scalable, efficient, and secure data processing and storage solutions amidst the ongoing digital transformation. According to projections by the United States International Trade Commission, the data processing and storage market is anticipated to expand from USD 56 billion in 2020 to USD 90 billion by 2025.
Nationwide Data Center Platform Launch and Strategic Collaborations Propels the Market Growth
Indonesia stands in the 8th position in the APAC region's data center market, with 79 market centers across the country, according to CloudScene data. A significant driver of the industry's growth is the collaboration between the Indonesia Investment Authority (INA) and Global Data Solutions (GDS) to launch a nationwide market platform.
This initiative targets hyperscale development in Nongsa Batam and is set against the backdrop of Indonesia's Special Economic Zones (SEZs). The partnership aims to support the nation's burgeoning digital economy by addressing the rising demand for market services driven by digital growth, IoT, and AI trends. It seeks to provide low-latency connectivity, attract both local and international investors, and contribute to the robust digital infrastructure necessary for Indonesia's ongoing digital transformation.
High Investments and Sustainable Initiatives Boosts the Growth of the Indonesia data center Market
Moreover, significant investments by global companies are propelling market growth. Equinix's USD 74 million investment in a new market center in Jakarta is a key example. This expansion, scheduled to open in 2024, aligns with the Indonesian government's digital transformation goals, providing a platform for local and global service providers.
It supports data onshoring objectives and the nation's digital economy by offering interconnected infrastructure that benefits both Indonesian businesses and multinational corporations operating in the region. In addition, DCI Indonesia's partnership with Salim Group to launch H2-02, Indonesia's first solar-powered market center, exemplifies the country's commitment to sustainable growth.
This 30 MW capacity facility, located on a 30-hectare site at the H2 Data Center Campus in Karawang, underscores a shift towards greener market solutions. These efforts not only support Indonesia's growing demand for network infrastructure services but also contribute to the nation's digital economic growth by aligning with global sustainability trends.
High Initial Investment Hinders the Growth of the Market
The data center market faces formidable challenges, primarily attributed to the substantial initial investment required and stringent environmental regulations. Establishing and maintaining network infrastructure demands significant upfront financial commitments, creating obstacles for smaller enterprises and startups seeking entry into the market. Additionally, ongoing compliance with environmental standards mandates continuous investment in energy-efficient technologies hinders the overall Indonesia data center market growth.
Integration of Edge Computing Presents Lucrative Opportunity for Market Expansion
The integration of edge computing into Indonesia data center market trends presents promising prospects for the industry's expansion. By minimizing latency and facilitating real-time processing, edge computing empowers applications such as the Internet of Things (IoT) and Augmented Reality (AR), alleviating the burden on centralized cloud data center while providing scalability and flexibility.
This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, paving the way for diverse opportunities for network infrastructure providers. Recent investments in startups such as Armada signify the escalating interest in edge computing solutions, signalling a concerted effort to address connectivity challenges and bridge the digital divide.
Competitive Landscape
The key players operating in the Indonesia data center industry include Equinix, Zenlayer, EdgeConnex, NTT Communications, WowRack and others.
Indonesia Data Center Market Key Segments
By Type
-
Colocation
-
Hyperscale
-
Edge
-
Others
By Deployment Model
-
On-Premises
-
Cloud
-
Hybrid
By Enterprise Size
-
Large Enterprise
-
Small and Medium Size Enterprise
By End User
-
BFSI
-
IT and Telecom
-
Government
-
Energy and Utilities
-
Other End Users
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 1.45 Billion |
|
Revenue Forecast in 2030 |
USD 3.09 Billion |
|
Growth Rate |
CAGR of 11.4% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
KEY PLAYERS
-
Equinix
-
Zenlayer
-
EdgeConnex
-
NTT Communications
-
WowRack
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Quantitative research is particularly effective in measuring the prevalence of trends, assessing market size, and gauging the impact of various factors on consumer behavior. The numerical precision attained through this approach equips our clients with actionable insights, facilitating data-driven decision-making and strategy formulation.
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