Muhammad Arif Angga, the General Chairman of the Indonesian Internet Service Providers Association, believes that the data center industry still has significant opportunities to grow in Indonesia. He estimates that the demand for data center capacity in Indonesia could reach nearly 1,000 megawatts (MW) based on the existing population, which is still far from the current available data center capacity in the country. The growth potential will be supported by the increasing internet penetration rate in Indonesia and the need for foreign digital companies to have data centers located in Indonesia to remain competitive.
According to Arif, the growth of the data center industry is driven by the increasing number of smartphones and internet penetration, the growth of the digital economy, government initiatives and support, and the development of cloud services. He also warns that foreign companies that adopt digital technology in their businesses will need data centers located in Indonesia to remain close to their user base, or risk falling behind.
