Indonesia aims to increase renewable energy production to contribute around 48% of the total electricity by 2030 in the government’s drive for sustainability.
According to researchandmarkets.com, the Indonesian government plans to generate approximately 23% of electricity from renewable sources by 2025, as outlined in the national electricity plan. The government aims to attain net zero emissions in the country by 2060.
The report added that Indonesia’s data center market is expected to receive investments of US$3.07 billion by 2028, growing at a CAGR of 6.27% from its 2022 value of $2.12 billion.
Indonesia’s government is spearheading digital transformation in the country, focusing on sectors such as government digitization, digital health, digital education, and industrial digitization. Tax incentives are being offered to boost the digital economy and encourage data localisation in the country. Investors who put in over US$2.10 billion will receive up to 100% tax reduction for approximately 20 years, depending on their investment period.
The data center investors listed in the report include Biznet Data Center, DCI Indonesia, DTP, Elitery, EDGE DC, IndoKeppel Data Centres, Indosat Ooredoo, IDC Indonesia, NTT Global Data Centers, Princeton Digital Group and SpaceDC and Telkom Indonesia. The new entrants mentioned are BDx, Data Center First, Digital Edge DC, Edge Centres, EdgeConneX, Equinix, Evolution Data Centres, GDS Services, K2 Data Centres, MettaDC, Minoro Energi Indonesia, Pure Data Centres Group and ST Telemedia Global Data Centres.
According to a report by Knight Frank, Indonesia and Malaysia are leading the way as the top providers of space and resources for data center investment.
Southeast Asia is driving the growth of global cloud infrastructure, prompting foreign cloud service providers and data center operators to invest billions of dollars in the region.
