AI Drives Growth in Indonesia's Data Center

The advent of artificial intelligence (AI) technology has significantly impacted the development of the data center industry in the Asia Pacific region, including Indonesia. According to The Wealth Report 2024 released by Knight Frank, the demand for data center space is expected to surge by 2025, particularly from technology and information companies.

Data centers are expected to be located near industrial areas, campuses, or tech hubs closely associated with AI research and development. Miranti Paramita, Marketing and Communication Manager of Knight Frank Indonesia, stated that in 2023, the demand for data center space in the Greater Jakarta area reached 33 percent of the market absorption, indicating a significant demand in that region.

"This trend has also persisted over the past three years, indicating sustained growth in data infrastructure within industrial areas in Greater Jakarta," Miranti noted.

The Asia-Pacific Data Centres 2023 report also shows that the emergence of AI has a substantial impact on the global data center market, with a high absorption rate of space. This phenomenon is not only occurring in America and China but also in various locations in Asia such as Johor, Mumbai, and Jakarta. These regions are predicted to benefit from the growing AI industry, especially since land and energy costs in Asia are still relatively affordable.

Although data usage levels in Indonesia are currently low, below 1 watt per capita compared to 10-100 watts per capita in other Asian countries, Indonesia shows substantial growth potential. This is evident from the high absorption rate of data center space in the Greater Jakarta area, making data center absorption in Indonesia one of the most active in recent years.

However, Miranti emphasized that operators must proactively coordinate their approaches in lobbying companies to increase energy production. Production of up to gigawatts of energy and its distribution across key data center markets is highly needed. "With the continuous adoption of cloud technology in the Asia Pacific region, the demand for data center services is soaring," Miranti added.

 

Source: KOMPAS.com


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