APAC Data Centre Update: H2 2024

GREATER JAKARTA ASIA PACIFIC PRIMARY MARKET

CENTRAL JAKARTA

CIKARANG

KEY INDICATORS*

278MW In Operation

28 / 52 Operators / Data Centres

AH152 - BOGOR

KARAWANG JATILUHUR

96MW / 456MW UC / Planned

36% Colo Vacancy

Colo Hyperscale Cloud Telco

MARKET OVERVIEW Jakarta, with more than 90% market share in the country’s operational capacity, remains the key data centre location. Within the greater Jakarta market, client preferences are taking shape with central Jakarta and Bekasi-Cikarang being the two established data centre clusters. The central Jakarta cluster has emerged as the preferred location for retail customers especially from the telecom and banking sectors. Some hyperscale clients have also hosted their POPs in this cluster. The Bekasi-Cikarang cluster is developing into a wholesale and hyperscale cluster with clients preferring to deploy their large workloads here. Availability of infrastructure, newly developed data centres, and large land banks for future builds provide clients the flexibility for a long-term expansion within the Bekasi-Cikarang cluster. The market recorded a 37% rise in its operational capacity growing from 203MW in December 2023 to 278MW in December 2024. Data centre operators remain optimistic on growth in demand in the coming years, therefore in addition to the 552MW development pipeline, there is another 750MW that can be built on the land banks already acquired by the operators. The top three American hyperscalers, Microsoft, AWS and Google, also have significant presence in Jakarta. Microsoft and AWS both have self-built facilities with spare land for future development. Despite the rapidly growing data centre capacities, Indonesia currently has the lowest population per MW ratios in Asia Pacific, i.e., ~925,000 people per each operational MW of capacity, reflecting significant headroom for growth over the coming years. Between 2025 and 2028, there are eight new subsea cables planned to be installed linking Jakarta with mature markets such as USA, Australia, etc., The improved subsea cable connectivity will further enhance Jakarta prospects to attract data centre operators as well as end-use clients. We anticipate Jakarta to remain an active datacentre market in 2025 that will see new operators launching their first data centres in the market along with existing operators initiating their expansion plans to add new capacity in the market. Some of the domestic operators may invest in upgrading their legacy facilities to align with the new age specifications and remain competitive in the evolving market.

ECOSYSTEM DEVELOPMENTS •

BDx signed a data centre cooperation agreement with the Association of Indonesia Internet Service Providers (APJII). APJII aims to enhance coverage of the Indonesia Internet Exchange (IIX) in Greater Jakarta and has hosted its new IIX node at CGK 3A campus of BDx. The presence of IIX at CGK 3A campus will provide a platform for developing a carrier-neutral interconnection ecosystem with higher bandwidth and lower latency. • Indosat Ooredoo Hutchison, in collaboration with Huawei, announced completion of a project to consolidate Indosat’s core network in Jakarta. The project was aimed to improve the data connectivity and download speeds while reducing latency for over 100 million users of Indosat. In addition, Indosat signed a two-year deal with Nokia to expand and enhance its 4G and 5G mobile network coverage across Indonesia. • Korea Investment Real Asset Management (KIRA) and PT SMPlus Digital Investama (SM+) , have announced a US$300M joint venture to develop a new data centre in Jakarta’s central business district by mid-2026. • Microsoft announced US$1.7B investment in Indonesia's cloud and AI infrastructure, including AI skilling up to 840,000 people. • Minister of Communication and Digital Affairs announced that the first National Data Center (PDN) located in Cikarang is expected to go live in March 2025. The PDN is part of the government's efforts to integrate data from ministries and government agencies and enhance the delivery of digital services to the public. The PDN will also enhance digital sovereignty and support the acceleration of digital transformation within the country. • Tencent announced its plans to invest US$500M by 2030 to build its new data centre which will be used to deliver cloud and AI services. The investment is part of its partnership with GoTo and Alibaba to bring cloud infrastructure and training to Indonesia. The data centre is expected to be located within Jakarta.

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW