The presence of artificial intelligence (AI)-based technology has a significantly positive impact on the development of the data center industry in the Asia-Pacific region, including Indonesia. The demand for data center space is expected to increase by 2025, particularly from technology and information companies, according to the Wealth Report 2024 published by Knight Frank. Data center locations are likely to be near industrial areas, campuses, or tech hubs closely associated with AI research and development.

According to Miranti Paramita, Marketing and Communications Manager of Knight Frank Indonesia, the demand for data center space in the Greater Jakarta area (Jabodetabek) is very dominant, reaching 33 percent of the total market.

The Asia-Pacific Data Center Report 2023 also noted that the prevalence of AI is increasing space penetration and positively impacting the global data center market. This is not only occurring in the United States and China but also in other Asian regions such as Johor, Mumbai, and Jakarta. These three areas benefit from AI development, primarily because land and energy costs remain affordable, particularly in Asia.

Although data consumption per capita in Indonesia is still low, less than 1 watt compared to 10-100 watts per capita in other Asian countries, there is significant potential for growth in large-scale data center space absorption in the Jabodetabek area.

However, Miranti emphasized that data center operators need to proactively adjust their approaches to encourage companies to increase energy production. This is crucial given the significant energy requirements to support major data center markets in the Asia-Pacific, especially with the growing adoption of cloud technology.

 

Source: kompas.com