By 2024, The Energy Capacity of Indonesia’s Data Centers Predicted to Reach 210 MW

Indonesia's Data Centers
Indonesia's Data Centers

Indonesia’s data centers are poised for substantial expansion, according to the Indonesian Data Center Association (IDPRO). Predictions indicate that by 2024, the energy capacity of data centers in Indonesia will surge to 210 megawatts (MW), signaling immense potential for business growth in the sector.

Hendra Suryakusuma, Chairman of IDPRO, revealed that the energy capacity of Indonesia’s data centers is projected to increase by 44.83% compared to the previous year. Moreover, Real Estate Asia forecasts that by 2026, the Indonesian data center market could reach a value of up to 3.07 billion US dollars or Rp45.9 trillion.

“This year, we anticipate the data center capacity to reach approximately 210 MW, up from 145 MW last year,” stated Hendra, as cited from a Bisnis article dated Monday (22/4/2024).

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Hendra identified three primary factors driving the surge in data center capacity in Indonesia. Firstly, the widespread internet penetration in Indonesia, which has reached 77% this year, translating to over 200 million people having internet access.

“With increased internet access comes a greater demand for data transfer, storage, processing, and analysis,” he explained.

Secondly, the ongoing digital transformation. Hendra highlighted that many companies are embracing digital technologies, leading to a higher demand for computing resources accessible via the internet.

Thirdly, Indonesia’s macroeconomic factors. Hendra observed that with sustained healthy growth and a large population, Indonesia’s GDP is expected to continue its upward trajectory.

IDPRO also noted a trend related to the age of data centers, indicating that some companies are beginning to establish data centers in urban areas.

“The objective is to bring data centers closer to where data is generated for more efficient processing,” Hendra remarked.

Analyzing data from Colliers, Hendra pointed out that the energy capacity of data centers in Indonesia is forecasted to reach approximately 2.3 gigawatts (GW) by 2030. The adoption of Artificial Intelligence (AI) contributes significantly to this growth.

“Previously, data processing and analysis primarily relied on CPU models, but now, with the integration of AI, the energy consumption per rack has significantly increased, from an average of 6 kilowatts to up to 50 kilowatts,” he elaborated.

In contrast, the average household electricity consumption in Jakarta stands at only about 3,000 watts.

“The rapid growth of energy capacity absorption in this industry suggests a promising future,” Hendra concluded.