Industry players warned that the government still needs to address existing challenges, including bottlenecks in equipment imports and delays in infrastructure construction.

The construction of Digital Edge Indonesia data center in Cikarang, West Java is underway in this undated picture. State power producer PT PLN is set to supply 2x725 megavolts of electricity to support the operation of the country’s largest data center. (Antara/PT PLN)

Industry players said Indonesia has the resources needed to emerge as a major data center hub in Southeast Asia, as established markets such as Singapore and Malaysia face growing constraints on land and power supply. However, they warned that the government still needs to address existing challenges, including bottlenecks in equipment imports and delays in infrastructure construction.State asset fund Danantara is ready to expand its investment in data center infrastructure amid strong demand, according to its CTO, Sigit Puji Santosa. He said Indonesia currently has around 45 large-scale data centers, but capacity remains tight, with new facilities quickly being absorbed by the market.

“If we build 100 megawatts or 200 megawatts, it will be fully taken up immediately,” he said on Aug. 27, as quoted by Antara.