Data Center Indonesia: Development From Site to Power
Kinnara Capital’s data center Indonesia advisory helps operators, developers and investors secure the three things every new facility depends on: suitable land, a reliable PLN power connection and the right approvals.
We work on colocation, hyperscale and AI data center projects, and with GPU cloud and neocloud operators looking for powered sites.
Data Center Indonesia: Why Now
Indonesia’s data center market is growing quickly. Savills counts 683.1 MW of existing IT capacity in Greater Jakarta and Batam as of June 2026, with a further 1,825.5 MW across 76 projects in the pipeline, and expects national capacity to pass 2 GW by 2030. Cushman & Wakefield put Jakarta’s development pipeline at 1,699 MW in the first half of 2026, with 395 MW already under construction.
The hyperscale cloud providers are already here. Google Cloud opened its Jakarta region in June 2020, AWS opened its Asia Pacific (Jakarta) region in December 2021, and Microsoft opened Indonesia Central in May 2025 alongside a US$1.7 billion investment plan for cloud and AI infrastructure from 2024 to 2028.
The state is investing too. Danantara, Indonesia’s sovereign investment agency, has named a Rp21 trillion data center platform with global operators among its 2026 priority projects.
Government systems stay onshore
Under Government Regulation (PP) 71/2019, public-scope electronic systems must manage and store their data in Indonesia. Since March 2025, government bodies must also use cloud services run in the National Data Centre.
Banks need onshore facilities
OJK Regulation 11/POJK.03/2022 requires banks to place their data centers and disaster recovery centers in Indonesia, unless OJK approves an offshore location.
Private companies can choose
Private-scope operators may store data inside or outside Indonesia, provided regulators can still supervise and access it.
New personal data rules from 2027
PP 33/2026, which implements the Personal Data Protection Law, takes effect on 16 January 2027 and sets conditions for transferring personal data abroad.
Where Data Centers Are Being Built
Greater Jakarta, east corridor
The Bekasi, Cikarang and Karawang industrial belt holds most global operators’ Jakarta data center campuses, inside estates such as GIIC, Jababeka, Delta Silicon and KIIC.
Batam
Batam’s special economic zone status and position next to Singapore have made it a second hub, with campuses at Nongsa Digital Park and Kabil. Savills counts 15 projects there.
Batam, Karimun and Bintan
In October 2026 the Energy Minister named Batam, Karimun and Bintan as a new government-backed hub for data centers, with clean energy supply to be prepared for it.
Surabaya and edge sites
Smaller and edge facilities serve East Java and other regional cities, closer to users outside Jakarta.
The right location depends on the workload. Colocation and cloud capacity for Indonesian users generally favours Greater Jakarta for latency and network density. Large AI training clusters care more about available power, land and cost, which is part of why Batam has grown. We help clients weigh those trade-offs before committing to a site.
Data Center Site Acquisition
Finding data center land in Indonesia is harder than finding land. A site has to be zoned for the use, close to high-voltage power, served by diverse fibre routes, outside flood zones and held under a title a foreign-owned company can own.
Many data center projects in Greater Jakarta and Batam sit inside industrial estates, which come with industrial zoning, estate infrastructure and an established process for land transfer. We also assess standalone sites where a client needs more land or a specific location. Our industrial estate advisory covers estate acquisition in more detail.
- Zoning and spatial approval: confirming the site’s zoning under the regional spatial plan, and the spatial approval (KKPR) the project will need.
- Title: checking the land title at the BPN land office. Foreign-owned PT PMA companies usually hold Hak Guna Bangunan (HGB), the right to build, often granted over an estate operator’s management right (HPL) inside industrial estates.
- Power: distance to a PLN substation, available grid capacity and the likely connection route.
- Connectivity: fibre routes, carrier presence and distance to Jakarta’s interconnection points.
- Water and environment: cooling water availability, flood risk and how the site will be screened for environmental approval.
- Access and expansion: room for phased growth, road access for heavy equipment and buffer from neighbours.
Power: Working With PLN
Power is usually the longest lead item in a data center project. The national utility, PLN, supplies 159 data center customers with 2,038 MVA of connected capacity, and about 99% of that capacity sits on the Java-Madura-Bali grid.
Large facilities connect as high-voltage customers through dedicated 150 kV substations. In April 2026, for example, PLN completed 150 kV substation bays for new data centers at the GIIC and KIIC estates east of Jakarta. Capacity is committed through a power purchase agreement with PLN; the largest data center agreement to date is 511 MVA for a campus in Batam, signed in April 2026. PLN also offers premium supply with double-feeder redundancy.
Demand is growing faster than the grid. In October 2026 the Energy Minister said data centers will need around 20 GW of additional power, and that the government will ask investors for their site plans so supply can be prepared. PLN has asked developers to align with it from the planning stage. The national electricity plan (RUPTL) for 2025 to 2034 adds 69.5 GW of generation, 61% of it renewable.
- Load planning: turning your phased IT load into the connection capacity, voltage and redundancy you will request. PLN quotes capacity in MVA, not MW.
- Early engagement: opening the conversation with PLN at site selection, so capacity and substation timing are known before you commit.
- Connection process: coordinating the application, technical studies and the power purchase agreement.
- Renewables: PLN’s Renewable Energy Certificates (RECs), sold as Green Energy as a Service, and options for on-site and contracted renewable supply.
Licences and Approvals
A data center company in Indonesia can be 100% foreign-owned. It is set up as a PT PMA, a foreign investment company, and licensed through the national Online Single Submission (OSS) system run by the Ministry of Investment and Downstream Industry/BKPM. Our foreign investment guide explains PT PMA setup step by step.
Licensing changed in 2025. Government Regulation 28/2025 replaced PP 5/2021 as the framework for risk-based business licensing, and the 2025 update to Indonesia’s business classification (KBLI 2025) renumbered the main data center code. Colocation and hosting activity, previously KBLI 63112, is now KBLI 63102, which names data center colocation in its scope.
- 1
Company and NIB
Set up the PT PMA, register in OSS and obtain a business identification number (NIB) for the right KBLI code.
- 2
Spatial approval (KKPR)
Confirm the site is suitable for the activity under the spatial plan. Environmental approval cannot be issued without it.
- 3
Environmental approval
Screening in the Amdalnet system decides whether the project needs a full AMDAL assessment, a UKL-UPL plan or an SPPL statement.
- 4
Building approval (PBG) and SLF
Obtain building approval before construction and a certificate of worthiness (SLF) before the building is used.
- 5
Regional coordination
Work with the regional one-stop licensing office (DPMPTSP) and other agencies on the approvals that sit with provincial or regency government.
GPUs, AI Compute and Neoclouds
AI is changing what a data center needs. Neoclouds, the GPU-focused cloud providers such as CoreWeave, Lambda and Nebius, have become a distinct category of cloud infrastructure: Synergy Research Group estimates their revenue passed US$25 billion in 2025.
Indonesia is starting to attract that capacity. Zankore, an AI compute and neocloud platform developed by Indosat Ooredoo Hutchison with Ooredoo, Nokia and NVIDIA, is targeting 1 GW and has secured a senior loan facility of up to US$3.1 billion. In Batam, Firmus and DayOne are building a 360 MW campus to house up to 170,000 NVIDIA accelerators. Lintasarta launched GPU Merdeka, a GPU cloud service, in Jakarta in 2024.
GPU clusters need far more power and cooling per rack than conventional IT, so power availability, cooling water and the approvals that come with them decide where AI capacity can go.
For GPU cloud and neocloud operators
We help you find sites with power available on your timeline, plan phased PLN capacity, and work through company setup and approvals.
For investors
We help you assess AI data center opportunities on the ground: land title, power commitments, approval status and realistic timelines.
We don’t sell or broker GPU hardware. Our role is the physical side of AI compute in Indonesia: land, power and approvals.
Design and Build
When a project moves to construction, we coordinate design-and-build partners and govern delivery on your behalf. Our construction partner, PT TSG Construction Indonesia, builds industrial facilities, cleanrooms and MEP-heavy factories, with BIM used across design, construction and handover.
Specialist data hall design and fit-out is led by the designers and contractors the operator chooses. We make sure the site, power, approvals and building programme come together on the same timeline.
How We Work
- 1
Brief
We confirm your target IT load, phasing, timeline, preferred locations and ownership structure.
- 2
Site search and screening
We shortlist sites against power, land title, zoning, connectivity, water and expansion criteria.
- 3
Power and approvals plan
We open early discussions with PLN and map every licence and approval, with a realistic timeline range.
- 4
Acquisition
We support negotiations and due diligence with your legal advisers through to land transfer.
- 5
Delivery
We coordinate approvals, the PLN connection and design-and-build partners through to operation.
Frequently Asked Questions
Can a foreign company own a data center in Indonesia?
Yes. A data centre in Indonesia can be 100% foreign-owned through a PT PMA, a foreign investment company licensed through the OSS system. Under BKPM rules a PT PMA generally needs a planned investment of more than Rp10 billion per business activity and location, excluding land and buildings. See our foreign investment guide.
Does Indonesian law require data to be stored in Indonesia?
Not for everyone. Government (public-scope) systems must keep their data in Indonesia, and banks must use onshore data centers unless OJK approves otherwise. Private companies may store data abroad, subject to supervision and, from 16 January 2027, the cross-border transfer rules in PP 33/2026.
How long does a PLN power connection take?
It depends on the capacity, the voltage and whether a new substation or grid reinforcement is needed. Large connections are planned in phases with PLN. That is why we start power discussions at site selection, before a site is committed.
Which KBLI code applies to a data center?
Colocation and hosting were classified under KBLI 63112. Under KBLI 2025 that activity is KBLI 63102, which explicitly includes data center colocation. The right code depends on your exact business model, so we confirm it with your legal advisers.
Where are most data centers in Indonesia?
Most capacity is in Greater Jakarta, especially the Bekasi, Cikarang and Karawang industrial corridor east of the city. Batam is the second hub, and the government has named Batam, Karimun and Bintan as a new data center hub.
Do you help with AI data centers and GPU clusters?
Yes, on the physical side. We help GPU cloud and neocloud operators, and the investors behind them, with sites, PLN power planning and approvals. We do not sell or broker GPU hardware.
Related Advisory Services
Industrial Estates
Finding, assessing and acquiring industrial land and estate lots, with design-and-build through our construction partners.
Government Relations
Structured, documented engagement with central ministries and regional government on permits, land and investment approvals.
Foreign Investment & BKPM
PT PMA setup, OSS licensing and working with BKPM investment facilitation for foreign investors entering Indonesia.
Planning a Data Center in Indonesia?
Tell us your target capacity, timeline and preferred locations. We’ll tell you what we’d check first and how we can help.
Contact Our TeamSources (checked 27 October 2026)
- Savills Research Indonesia, “Data Centres in Indonesia – Riding the AI Wave”, July 2026.
- Cushman & Wakefield, “Asia Pacific’s Data Centre Development Pipeline Reaches Record 26.5GW in H1 2026”, 5 August 2026.
- Google Cloud, “New Google Cloud region in Jakarta now open”, 24 June 2020.
- Amazon, “AWS Launches Region in Indonesia”, 14 December 2021.
- Microsoft Source Asia, “Microsoft opens its first cloud region in Indonesia to unlock the new AI economy”, 27 May 2025.
- Antara, “Indonesia’s Danantara unveils US$13.1B investment plan for 2026”, 13 February 2026.
- Government of Indonesia, “PP No. 71 Tahun 2019 tentang Penyelenggaraan Sistem dan Transaksi Elektronik”, 10 October 2019.
- Komdigi JDIH, “Permenkomdigi No. 5 Tahun 2025 tentang Penyelenggara Sistem Elektronik Lingkup Publik”, 25 March 2025.
- OJK, “Ringkasan POJK Nomor 11/POJK.03/2022 tentang Penyelenggaraan Teknologi Informasi oleh Bank Umum”, 2022.
- RSM Indonesia, “PP 33/2026: Six Implementation Priorities before 16 January 2027”, 18 September 2026.
- Ministry of Energy and Mineral Resources, “Pusat Data Butuh Tambahan 20 GW, Bahlil Siapkan Energi Bersih dan Hub Baru di Batam–Karimun–Bintan”, 19 October 2026.
- Katadata (Antara), “Konsumsi Listrik Data Center yang Dilayani PLN Capai 2.378 GWh”, 26 September 2026.
- PLN, “PLN Rampungkan Infrastruktur Listrik Data Center Microsoft”, 29 April 2026.
- PLN, “PLN Teken PJBTL Terbesar untuk Data Center di Indonesia, Siap Pasok Listrik 511 MVA ke DayOne”, 26 April 2026.
- Listrik Indonesia, “Data Center Terbesar RI Dapat Pasokan Listrik Premium dari PLN”, 8 June 2026.
- PLN, “Green Energy as a Service / REC-eligible Power Plants”.
- Ministry of Energy and Mineral Resources, “Dongkrak Energi Bersih, Menteri ESDM Tekankan Pentingnya Komitmen Laksanakan RUPTL”, 27 May 2025.
- OSS RBA, “KBLI 63102: Aktivitas Penyediaan Infrastruktur Komputasi, Hosting, dan Aktivitas Terkait”.
- Watson Farley & Williams, “Data centres: an international legal and regulatory perspective – spotlight on Indonesia”, 3 July 2025.
- Hukumonline, “Mengenal Ulang Persetujuan Lingkungan dan Amdalnet Pasca Terbitnya PP 28/2025”, 22 October 2025.
- Pasal.id, “PP Nomor 28 Tahun 2025”.
- BRI Danareksa Sekuritas, “Mapping Indonesia’s Data Center Race: Early-Stage Growth with a Deep Pipeline”, 21 August 2026.
- TechRepublic, “Indonesian Governor Orders Halt to BDx AI Data Center Over Missing Permits”, September 2026.
- Synergy Research Group, “Neocloud Market Forecast to Approach $400B by 2031”, 2 April 2026.
- Qatar News Agency, “Ooredoo Group scales its AI compute ambitions through investment in Zankore”, 6 August 2026.
- Light Reading, “Zankore to build Indonesia’s first AI factory with $3.1B funding”, 11 September 2026.
- Light Reading, “Firmus expands to Indonesia through AI access deal with Nvidia”, 29 June 2026.
- Kontan, “Lintasarta Luncurkan GPU Merdeka untuk Mendukung AI Berdaulat di Indonesia”, 21 August 2024.
Images: Server racks and transmission towers via rawpixel (CC0) · Jakarta at night by Niels Lange (CC0), WordPress Photo Directory
This page is general information, not legal, tax or investment advice. Indonesian regulations change often. We confirm current requirements for each project with licensed Indonesian legal and tax advisers, and no outcome, approval or timeline is guaranteed.