The Indonesia Green data center market is expected to grow rapidly during the forecast period owing to various factors such as increasing demand for enterprise-class colocation services and high investment by IT and telecom companies in cloud computing technology.

The Global Green Data Center Market is segmented based on types, end-users, and regions. Based on types, it has been segmented into software & services, hardware & infrastructure, cooling systems, power efficiency solutions, building management systems (BMS), and others (energy storage devices).

The major drivers for the growth of this market are the increasing demand for green data center services by enterprises and government agencies and the growing need for establishing green data centers due to environmental concerns.

Indonesia Green Data Center Demand

There is a growing demand for managed hosting services in Indonesia owing to enterprises’ increased adoption of digitalization. The trend is expected to proliferate over the forecast period due to the country’s rapid development of IT infrastructure.

As more companies adopt digital transformation strategies, they need to store and process large amounts of data. Thus, there is a huge demand for solutions to help them manage this information effectively without compromising security and reliability.

This has led to an increased demand for high-quality and reliable data centers that can deliver secure storage services at a reasonable cost.

The Indonesia Green Data Center market is expected to grow from USD 1.44 billion in 2019 to USD 2.19 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 9.58% during the forecast period (forecast period 2020-2023).

Digital Transformation in Indonesia Drives Data Center Demand

Indonesia is the largest archipelagic country in the world. It is also one of the most populous countries, with 260 million people. A growing economy and increasing internet penetration have led to an increase in demand for data center services.

Indonesia is one of the fastest growing economies in Southeast Asia, with a GDP growth rate of 5.2% during 2018-2023

There are currently 200 million internet users in Indonesia, according to the latest report in June 2022. The pandemic has brought most Indonesians to be increasingly active on digital channels. This certainly brings specific needs to the data center.

Google, AWS, Microsoft, and other tech giants are realizing this. They need to get closer to their users in Indonesia.

This is what shapes the development of data centers in Indonesia. Currently, in Indonesia, there are only a dozen data centers with a total capacity of 150 Mega Watts (according to the Indonesian Data Center Provider Organization, IDPRO)

Carbon Emission issues

The Indonesian government has committed to reducing carbon emissions since this year. This is part of its National Action Plan on Climate Change and Energy (NAPCCE), which will be implemented in the coming years. The plan aims to increase energy efficiency, develop renewable energy sources, and curb deforestation.

Carbon emissions are one of Indonesia’s major concerns for data center providers. Indonesia’s government is working to reduce its carbon footprint.

In Indonesia itself, several data centers that have been established are trying to upgrade to become efficient and more environmentally friendly.

One of the good efforts in Indonesia was the commitment between Pertamina (State Owned Energy Company) and the data center in Indonesia to supply gas to the data center.

Using gas as an energy source in the data center can reduce carbon emissions by up to 50%. The global targets for reducing carbon emissions by 2025 are 50% and 100% by 2050, as stated in the Net-Zero Pact.

3 Green Data Centers in Indonesia

With the support of gas supply commitments for data centers, three green data centers in Indonesia are currently being built.

First is the Edge Data Center in Central Jakarta, with a total capacity of 40 MW. Then there is GreenexDC in South Jakarta and Atria DC in West Jakarta, all of which have received gas supply commitments from Pertamina (State Gas Distributor).

This condition indicates that Indonesia is in the phase of rapid green data center growth in 2022. Green data center investment in Indonesia reached USD 500 million in the middle of 2022 and is predicted to reach USD 750 million by the end of 2022.

Government Regulation Support

The Indonesian government pays special attention to the data center sector, especially green data centers. To reduce carbon emissions, the Government of Indonesia provides several incentives to the green data center industry.

Foreign investment that enters the ICT industry sector, including green data centers, will be given a 50% tax discount for up to 5 years of operation. This has made several venture capitalists invest in Indonesia’s green data center industry.

Previously, several technology giants, such as Google, AWS, and Microsoft, had their data centers fully operational in Indonesia. The issue that arises is that these technology giants are less transparent in their data center operations, such as using labor, energy sources, emission levels, etc.

In the future, all data centers in Indonesia must meet the reduction of carbon emissions. In other words, all data centers must transparently disclose data to the public about their data center carbon footprint.


Green data centers are not a temporary trend in the data center industry. They are an inevitable force that will continue to grow in this industry.

The green data center market will generate a sustainable revenue stream and provide more opportunities for existing players and new entrants, helping the overall data center market growth due to the increasing demand for IT infrastructures and services in Indonesia.

In addition, data center expansion in Singapore is no longer possible since the government moratorium prohibits the construction of new data centers in Singapore.

Indonesia is the only best alternative country for data center expansion. The availability of natural gas supplies that can reduce carbon emissions by up to 50%, government support, and available facilities make Indonesia’s green data center industry grow rapidly.


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