Building a Data Center Is More Than Just Construction
Building a data center is not just about erecting physical structures with advanced infrastructure. Behind the concrete walls and towering server racks lies a complex process — from design and project management to compliance with technical and regulatory standards.
It requires collaboration among various professionals to ensure projects run safely, efficiently, and on schedule. This topic is explored in the latest podcast from Nusantara Academy, featuring three experienced voices:
- Stephanus Tumbelaka, former Managing Director at Princeton Digital Group
- Chris Yates, former Project Director at PureDC
- Hosted by Intan Tiara Dewi, Head of Building Products at Siemens Indonesia
The discussion highlights the rapid growth of Indonesia’s data center industry, alongside the real-world challenges in construction and project execution.
Rapid Growth of Indonesia’s Data Center Capacity
In the next five years, the Greater Jakarta (Jabodetabek) region is projected to become Indonesia’s primary data center hub. Capacity is expected to surge from around 100 MW in 2024 to 500 MW by 2029, signaling massive expansion by both local and international players.
The chart illustrates the projected increase in data center capacity in Jabodetabek from 2024 to 2029. This upward trend reflects the acceleration of investment and expansion from hyperscale operators and the growing demand for digital infrastructure across Indonesia.
This growth is fueled by digital transformation, rising cloud service adoption, and heavy investments from both global and local data center providers.
However, expansion also brings challenges — from a shortage of skilled local professionals to complex permitting processes and energy efficiency issues in tropical climates.
According to Structure Research 2025, Indonesia is now among the fastest-growing data center markets in Asia, alongside India and Vietnam.
Local Workforce Challenges in Indonesia’s Data Center Industry
The shortage of skilled workers remains a major issue in Indonesia’s data center development. Many local professionals are still adapting to the fast-paced work culture and direct communication style required in large-scale projects.
The chart illustrates Indonesia’s national energy mix in 2025, where around 65% still comes from coal, while renewables account for only about 10%.
This imbalance presents a major obstacle in achieving sustainability goals for the energy-intensive data center sector.
Chris Yates emphasized the importance of continuous training and a shift in work culture to help local workers become more proactive, communicative, and confident.
By strengthening the local workforce, Indonesia can reduce dependence on foreign experts and build a sustainable data center ecosystem.
Effective Project Management in Data Center Construction
Data center projects involve multiple disciplines — civil, structural, mechanical, electrical, and IT security.
Without strong coordination, the risks of rework, delays, and cost overruns are high.
Stephanus Tumbelaka stressed that success lies in maintaining workflow discipline and effective project management. Teams must enforce proper sequencing, ensure clear communication, and uphold safety and quality standards across all project phases.
Procurement Strategy and Supply Chain Management
The COVID-19 pandemic exposed vulnerabilities in global supply chains. Essential equipment such as generators and cooling systems now have lead times of up to 50 weeks — far longer than before.
The solution lies in early-stage procurement once project designs are finalized.
Collaboration among project owners, designers, and suppliers from the start is critical to avoid delays and cost escalation.
The Challenge of Implementing Green Data Centers in Indonesia
The concept of green data centers is gaining traction as awareness of clean energy and sustainability grows.
However, Indonesia still faces major hurdles because more than 60% of its national energy comes from coal.
While some Independent Power Producers (IPPs) have begun offering renewable energy certificates, their capacity remains limited to meet large-scale data center demand.
Government commitment and infrastructure investment are essential to integrate green energy into this sector
The Shift in Data Center Location Strategy
Initially, many data centers were built in city centers to maintain proximity to customers and reduce latency.
Now, the trend is shifting toward industrial zones in Greater Jakarta, where larger power capacity, better cooling systems, and more available land support expansion.
- Large capacity (>10 MW): best suited for industrial zones
- Medium capacity (6–10 MW): still relevant in urban areas for edge computing and cloud services
This shift indicates a long-term infrastructure strategy focused on scalability, efficiency, and reliability.
The Importance of Transparency and Client Communication
In projects with tight deadlines and high risks, transparent communication with clients is crucial.
Experts emphasize that honesty about challenges — whether delays or cost increases — builds long-term trust.
An open approach enables collaboration between teams and clients to find solutions, keeping projects on track even under pressure.
Conclusion: Building a Sustainable Data Center Ecosystem in Indonesia
The rapid growth of Indonesia’s data center industry presents huge opportunities, but also demands readiness in several key areas:
- Strengthening the local workforce
- Improving project management efficiency
- Developing adaptive procurement and logistics strategies
- Applying sustainability and energy efficiency principles
The Nusantara Academy podcast highlights that building a data center isn’t just about infrastructure — it’s about building an ecosystem: skilled talent, effective regulation, and resilient supply chains.
With the right preparation, Indonesia is well-positioned to become a leading data center hub in Southeast Asia, driving national digital transformation in a sustainable way.
For more details, listen directly to the podcast on YouTube Nusantara Academy and don’t forget to register for training by contacting https://wa.me/6285176950083
