Data Centers in Indonesia

Indonesia – Powering Southeast Asia's Digital Growth

Indonesia is the essential market for any business targeting Southeast Asia's massive and rapidly expanding digital economy. Its strategic location and enormous domestic user base make it a critical hub for deploying infrastructure that requires low latency and high performance to serve the world's fourth-largest population.

Indonesia: At A Glance

Network & Connectivity Ecosystem

Indonesia's connectivity is defined by its international gateways and a focus on domestic distribution. With over 104 data centers, the market offers a solid foundation for digital services.

Carrier Density & Carrier Neutrality The country is served by over 23 network service providers as of September 2025. Leading colocation facilities in the Jakarta metro area are carrier-neutral, providing resilient access to a mix of domestic and international carriers for optimized routing and cost.

Direct Cloud On-Ramps With over 7 cloud on-ramps serving 5 distinct cloud regions as of September 2025, Indonesia provides direct, low-latency connections to major hyperscalers. Private interconnection is available to Alibaba Cloud, AWS, Google Cloud (GCP), and Microsoft Azure, enabling secure and performant hybrid cloud architectures.

Internet Exchange Points (IXPs) The Indonesia Internet Exchange (IIX) is the primary hub for domestic peering. Connecting at the IIX significantly reduces latency for traffic within the country by keeping data local and avoiding international hops.

Bare Metal Bare metal servers are readily available from providers in the Jakarta area. Global providers such as Hivelocity and phoenixNAP offer dedicated server solutions, giving businesses direct access to compute resources without the virtualization overhead.

Power Analysis

Average Cost Of Power Industrial electricity costs typically range from $0.08–$0.12/kWh as of September 2025. This competitive pricing structure is advantageous for high-density deployments and large-scale infrastructure investments.

Power Grid Reliability The power grid supporting the main data center clusters around Jakarta is well-engineered, with facilities receiving power from multiple utility substations. While the national grid has a high dependency on fossil fuels, individual data centers provide extensive UPS and generator backup to guarantee uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Most data centers are concentrated in and around Jakarta, particularly in industrial parks like Cibitung. This proximity provides low-latency connectivity to Indonesia’s financial, e-commerce, and government centers, which is critical for transaction-heavy applications.

Regional Market Reach An infrastructure deployment in Indonesia directly serves a domestic market of over 275 million people. It also functions as a strategic anchor for reaching the broader ASEAN region, a digital market of over 680 million consumers.

Tax Advantage For Data Centers Indonesia provides specific tax incentives for data centers that operate within designated Special Economic Zones (SEZs). These programs offer concessions and regulatory relief that can substantially reduce the financial burden of capital investment and ongoing operations.

Natural Disaster Risk

Indonesia has a Medium overall disaster risk profile, with a score of 4.5 out of 10 as of September 2025. The high hazard and exposure score of 7.1/10 means that facility location and construction standards are paramount for ensuring operational resilience.

Key natural hazards include:

• Tsunami: 9.3/10
• Earthquake: 8.9/10
• River Flood: 8.4/10
• Coastal Flood: 8.1/10

While these national-level risks are high, data centers are typically sited in zones selected to mitigate these threats. Due diligence on specific locations, elevations, and seismic ratings is a standard part of any deployment strategy in the region.