Indonesia's data centre sector poised for major expansion as AI demand surges

Indonesia's data centre industry is attracting significant fresh investment amid the global artificial intelligence boom, positioning the archipelago as a key hub for digital infrastructure in Southeast Asia.

According to market research, Indonesia's data centre sector was valued at approximately 2.81 billion USD in 2025 and is forecast to expand to 6.08 billion USD by 2031, representing compound growth driven by increasing demand for cloud computing and AI processing capabilities.

The expansion reflects broader regional trends, with Indonesia capitalizing on its strategic location, growing digital economy, and improving infrastructure to draw investment from technology companies seeking to establish data processing facilities across Asia-Pacific.

The growth trajectory underscores Indonesia's emerging role as a digital leader within ASEAN, supported by government initiatives promoting data collaboration and digital transformation across the region. Rising demand for data storage and processing power from both domestic enterprises and multinational technology firms is expected to sustain momentum in the sector.

Industry analysts attribute the expansion to the convergence of AI adoption, increased e-commerce activity, and growing data consumption patterns throughout Southeast Asia, with Indonesia positioned to capture a significant share of regional investment flows.