Indonesia is one of the major economies among ASEAN countries. The data center market in Indonesia has been growing rapidly and is the second major market after Singapore. It had a share of around 15% of the overall investment in 2022 in the Southeast Asia data center market. Indonesia has ample availability of industrial land in the form of free trade zones and special economic zones. Also, the government has established several industrial parks to support industrial developments in the country. Data center operators have also started opting for new locations apart from major markets such as Jakarta and West Java. The Indonesia data center market has several local and global colocation operators and newer players. The rapid growth in digitalization in the MSME sector and the increase in the number of technology firms in the country will keep driving colocation demand in the market.

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The Indonesia data center market has been growing significantly over the past few years due to several driving factors such as the demission of demand from the major markets like Singapore due to the data center moratorium, growth in digitalization, increasing submarine cable deployments, cloud adoption, and implementation of advanced technologies. Regarding 5G connectivity, telecom operators such as Telkom Indonesia and Indosat Ooredoo are deploying 5G network services across the country. For instance, in November 2022, Indosat Ooredoo Hutchinson (IOH) partnered with IBM to develop 5G solutions in the country.

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The government launched Personal Data Protection (PDP) Law in 2019; according to the law, data transfer outside of the country has to fulfill stringent regulations set by the government for data transfer and also protect and process the sensitive data of the country. Moreover, the government has developed several industrial parks in the country, such as MM2100, GIIC, Jababeka, Kabil Integrated Industrial Estate (KIIE), and Suryacipta, which support industrial development. For instance, Minoro Energi Indonesia’s facility DC-1 is developed in Jababeka Industrial Estate, the country's largest industrial estate.