As digital transformation and IT workloads continue to grow, businesses need reliable solutions for storing and managing their data, as well as maintaining their servers. Hyperscale data centers offer an effective way to support these needs. In Indonesia, the demand for hyperscale data centers is expanding rapidly, driven by the growth of businesses across various sectors. In this article, let’s explore the current state of hyperscale data centers in Indonesia and what the future holds for this industry.

What are Hyperscale Data Centers?

Hyperscale data centers are large-scale facilities designed to meet the massive data storage and processing demands of modern businesses. These data centers allow companies to scale their operations efficiently while maintaining high performance, far beyond the capabilities of traditional enterprise data centers.

The demand for hyperscale data centers has surged with the rise of major tech companies that rely on vast amounts of data to fuel their operations. Leading companies like Google, Amazon, and Microsoft continue to expand their data center networks to gain a competitive edge in the market.

Read more: Colocation Data Centers Evolution: Why They Matter

The Current State of Hyperscale Data Centers in Indonesia

In Indonesia, hyperscale data centers are growing rapidly, with new facilities being built across key regions to meet the increasing demand for data storage and processing. The growth of artificial intelligence (AI) and automation also drives AI-ready data centers – opening more opportunities for hyperscale data centers.  According to e-Conomy SEA 2024 research, data center energy capacity in the country has reached 200 megawatts (MW) and planned 270% additional capacity starting from this day. This surge in capacity demonstrates Indonesia’s tremendous potential as a hub for data center investment, positioning the country as one of the key players in the Southeast Asian digital economy.

The expansion of hyperscale data centers in Indonesia is also supported by the strategic location of these facilities. Many data centers are now being built in or near central business districts (CBDs), which helps businesses reduce latency, improve connectivity, and enhance overall performance. These data centers play a crucial role in supporting the growing digital infrastructure of Indonesia, offering solutions that address the data needs of enterprises across various industries, from finance and healthcare to e-commerce and government.

Despite the rapid growth, several challenges must be addressed in order for the hyperscale data center industry to continue its expansion. Industry leaders have raised concerns about the regulatory environment, including the need for more streamlined permit processes and clearer guidelines for data center construction. Water supply and energy infrastructure are also critical issues, as hyperscale data centers consume vast amounts of water for cooling and electricity for their operations.

Additionally, there is an increasing need for skilled labor to manage the growing complexity of hyperscale data centers, particularly with the rise of AI and machine learning technologies. Addressing these challenges will be key to ensuring that Indonesia’s hyperscale data center industry remains competitive on the global stage.

Read more: Data Center Trends (part 2) : Harnessing Power and Efficiency in Hyperscale Data Center

What’s Left for the Future of Hyperscale Data Centers in Indonesia?

Looking ahead, the future of hyperscale data centers in Indonesia appears promising, with strong growth potential driven by ongoing digital transformation and increasing demand for data services. As businesses continue to adopt cloud computing, AI, and big data technologies, the need for high-performance, scalable data centers will only increase.

Recognizing the strategic importance of data centers and collaborating with related decision makers is crucial to foster a favorable environment for the industry’s growth. This includes efforts from each party to be aware of the benefits that data centers could offer and provide support from various aspects: law and regulations, infrastructure, and green technologies. With consistent support and continued private sector investment, Indonesia is well-positioned to become a leader in the Southeast Asian data center market.

From the explanation above, here are several key trends that are likely to shape the future of hyperscale data centers in Indonesia:

1. Significant Market Growth

The demand for hyperscale data centers will continue to rise as businesses expand their digital infrastructure and migrate more services to the cloud. Indonesia’s growing tech ecosystem, along with the rapid adoption of e-commerce and fintech solutions, will drive the need for more robust data storage and processing capabilities.

2. Increased Rack Power Density

As technology evolves, data centers are becoming more energy efficient, and rack power density is expected to increase. This trend will allow data centers to handle greater workloads without consuming additional space, optimizing both performance and cost-effectiveness.

3. Green Data Centers

Sustainability is becoming a key priority in the data center industry. As the environmental impact of energy-intensive data centers comes under scrutiny, there will be a growing focus on integrating renewable energy sources and energy-efficient technologies. Businesses and operators are expected to invest in green practices such as using solar power, advanced cooling technologies, and sustainable building materials to reduce their carbon footprint.

Read more: Driving the Future: Integrating Renewable Energy into Data Centers

Conclusion

The hyperscale data center industry in Indonesia is rapidly expanding, driven by the continued digital transformation and strong government support. As the adoption of AI, automation, and advanced technologies increases, the demand for hyperscale data centers will only continue to rise.

At EDGE DC, our latest facility, EDGE2 is designed to provide scalable solutions that not only boost business performance but also reduce environmental impact. Located in downtown Jakarta, our data centers offer state-of-the-art infrastructure to support your growth in a sustainable way.

Each hyperscale’s deployment is different depending on its size and the complexities it must accommodate. Interested in learning more about how we can help your business scale? Contact our team today for more information and to discuss your unique needs.