Data Centers in Indonesia

Indonesia – Connecting a Digital Archipelago

Executive Summary

Indonesia represents one of the largest and fastest-growing digital economies in the world. For any business serious about capturing the Southeast Asian market, establishing a local data center presence here is essential for delivering the low-latency performance required to serve its vast and distributed population. Colocation in Indonesia directly addresses the geographic challenges of the archipelago, ensuring reliable application delivery and unlocking access to over 275 million consumers.

Indonesia: At A Glance

Network & Connectivity Ecosystem

Indonesia's connectivity landscape is mature and competitive, providing excellent options for local and regional traffic exchange. With over 100 data centers, the market is well-established.

Carrier Density & Carrier Neutrality: The market supports over 20 unique network carriers, as of September 2025. Carrier-neutral facilities in major hubs like Jakarta provide a wide selection of domestic and international providers, ensuring competitive pricing and network resilience.

Direct Cloud On-Ramps: With over 7 dedicated cloud on-ramps, businesses can establish secure, high-performance connections directly to major public clouds. Available providers include Alibaba Cloud, AWS, Google Cloud (GCP), and Microsoft Azure, connecting to 5 distinct cloud regions as of September 2025.

Internet Exchange Points (IXPs): The Indonesia Internet Exchange (IIX) is the primary peering point, keeping a massive volume of domestic traffic within the country's borders. This dramatically reduces latency for local users. Additional exchanges like OpenIXP further enhance the domestic peering ecosystem.

Bare Metal: Bare metal cloud solutions are readily available, offering dedicated, high-performance compute for workloads that demand it. Providers like Hivelocity and phoenixNAP serve the region with powerful, on-demand server options.

Power Analysis

Average Cost Of Power: Industrial power rates typically range from ~$0.09–$0.11/kWh, as of September 2025. This competitive pricing structure helps control operational costs for high-density compute deployments.

Power Grid Reliability: In key data center zones like Jakarta and its surrounding industrial estates, the power grid is well-engineered with support from multiple substations. While the national grid can experience variability, premier data centers provide extensive N+1 or 2N UPS systems and multiple days of on-site fuel storage to guarantee uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in and around Jakarta, providing low-latency connectivity to the nation's financial heart, including the Sudirman Central Business District (SCBD). This proximity is critical for financial services, e-commerce, and enterprise customers that require minimal delay.

Regional Market Reach: An infrastructure footprint in Indonesia provides direct access to the fourth largest population in the world. It serves as an effective digital gateway to hundreds of millions of internet users across the country's many islands and is a strategic anchor for broader Southeast Asian operations.

Tax Advantage For Data Centers: Indonesia provides tax incentives for data centers located within designated Special Economic Zones (SEZs). These government programs offer significant financial benefits through tax holidays and regulatory relief, improving the return on investment for long-term infrastructure commitments.

Natural Disaster Risk

Indonesia carries a Moderate (4.5/10) overall disaster risk rating, as of September 2025. The country's location on the Ring of Fire and its tropical archipelago geography create specific environmental challenges that must be addressed through resilient infrastructure design.

Key natural hazards include:

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

Operators mitigate these risks by selecting sites away from coastlines and known floodplains, and by building facilities to stringent seismic codes.