Indonesia is entering a new digital era. From e-commerce and digital payments to streaming services and cloud computing, almost every aspect of daily life now relies on data centers—the invisible backbone of the digital economy. The growth in internet penetration, combined with the rise of remote work and digital services, has fueled an exponential demand for secure, scalable, and efficient data infrastructure.
To meet this demand, businesses and governments alike are seeking solutions that balance cost, reliability, and future scalability. One increasingly important answer lies in industrial parks. Traditionally built to support manufacturing and logistics, these parks are now being reimagined as prime locations for large-scale data centers.
In a recent podcast, two industry experts—Mr. Suyosi Ohara, Head of Technical Planning and Construction at PT Pura Del Talastari, and Mr. Babette Surya Chipa, Vice President of Sales and Marketing at PT Pura Surya Chipa and Head of ICT and Digital Communication for the Indonesian Industrial Estate Association—shared their insights on how industrial parks are evolving to meet this rising demand. Their diverse backgrounds in construction, real estate development, marketing, and technology offer a multidimensional view of this fast-moving sector.
The Evolution of Data Center Demand in Indonesia
The demand for data centers in Indonesia did not happen overnight. According to the speakers, inquiries began as early as late 2018, with actual tenant activity picking up significantly by 2023. This timeline mirrors Indonesia’s rapid adoption of cloud-based services and the digital transformation sweeping across industries.
Industrial parks had to adapt quickly. Building data centers requires not just space, but also specialized infrastructure: uninterrupted power supply, high security, redundant connectivity, and geologically safe locations. For park operators, this was both a challenge and an opportunity. By reconfiguring their offerings, industrial parks could position themselves as critical enablers of Indonesia’s digital future.
Why Industrial Parks are Ideal for Data Centers
Unlike city-based facilities, which often rely on high-rise buildings with limited space for horizontal growth, industrial parks offer large, modular land parcels that can be expanded in phases. This model is highly attractive to data center operators because it allows:
- Phased investment → Companies can start small and expand as demand grows, reducing financial risks.
- Flexibility in design → Horizontal growth makes it easier to upgrade facilities and integrate new technologies.
- Cost efficiency → Land outside urban centers is more affordable, and operational expenses can be better managed.
- Future scalability → With digital adoption projected to keep growing, operators need room to expand without relocating.
As the experts explained, these advantages make industrial parks economically superior to city locations, especially when planning for long-term data center clusters.
Power and Connectivity: The Lifelines of Data Centers
Perhaps the most critical requirement for data centers is power reliability. Downtime is simply not an option. To ensure continuity, facilities typically require:
- Dual-feed electricity from separate substations.
- Backup generators capable of running for extended periods.
- Uninterruptible Power Supply (UPS) systems that prevent even split-second outages.
The scale of demand is staggering. Experts project that Indonesia’s data center industry could consume 700–1000 MW of power in the next decade, requiring close collaboration with utility providers to maintain supply quality and stability.
Connectivity is equally vital. Data centers rely on multiple fiber optic entry points to guarantee redundancy. Without this, a single disruption could result in service outages for thousands of businesses. Water supply is another critical factor, especially for cooling systems. Industrial parks must therefore design utilities with multiple layers of redundancy to meet global standards.
Location Matters: Safety, Security, and Accessibility
Beyond infrastructure, location strategy plays a central role in the success of a data center. Operators seek sites that are:
- Flood-free and geologically safe, minimizing risks from natural disasters.
- Well-secured, with controlled access to prevent sabotage or vandalism.
- Accessible to skilled labor, ensuring rapid response for maintenance or emergencies.
Industrial parks that can offer dedicated zones for data centers, equipped with mature infrastructure and high-level security, hold a competitive edge in attracting global tenants.
Supporting Startups and Economic Growth
While hyperscale data centers often capture headlines, the benefits extend beyond large corporations. For startups and SMEs, data centers in industrial parks provide a cost-effective alternative to building in-house infrastructure.
By outsourcing servers, electricity, cooling, and IT staff to professional operators, smaller firms can save significantly on capital expenditure and operating costs. This flexibility enables them to scale faster, focus on innovation, and compete with larger players. In this way, industrial parks are not only supporting global tech giants but also nurturing Indonesia’s entrepreneurial ecosystem.
Environmental and Security Challenges
Despite the advantages, the growth of data centers also brings challenges. These facilities are resource-intensive, consuming vast amounts of electricity and water. With rising energy costs and climate risks, sustainability becomes a pressing concern.
Operators must therefore consider:
- Renewable energy integration to offset rising power consumption.
- Efficient cooling systems to reduce water and energy use.
- Robust security measures against both physical and cyber threats.
Industrial parks that can balance high performance with sustainable practices will become leaders in this space, attracting both global investors and environmentally conscious tenants.
Conclusion: Industrial Parks as Strategic Enablers
The Indonesian data center industry is at a critical juncture. As demand grows, the ability to provide scalable, reliable, and secure infrastructure will determine the country’s competitiveness in the global digital economy.
Industrial parks are uniquely positioned to meet this need. Their scalability, economic advantages, and strategic locations make them the backbone of Indonesia’s data center future. By offering dedicated zones, redundant utilities, and access to skilled labor, they create an ecosystem where both multinational operators and local startups can thrive.
Looking ahead, the synergy between industrial parks and data centers will play a defining role in shaping Indonesia’s digital transformation. The success of this partnership depends on careful planning, sustainable infrastructure, and continued collaboration between developers, utility providers, and technology companies.
As the experts emphasize, this is more than just real estate—it’s about building the digital foundation for Indonesia’s future economy.
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
