Indonesia Stands to Gain from Regional Data-Center Buildout

Dow Jones
08/18

0308 GMT - Indonesia is a potential beneficiary of the regional data-center buildout, UOB Kay Hian analysts say in a note. Singapore has previously highlighted constraints on land, power and water, while the Malaysian state of Johor has gained from a significant spillover given its proximity to the city-state. However, rapid growth has increasingly strained resources, with Malaysia tightening power and water screening for data-center projects, and Johor restricting water-intensive facilities in 2026. "Against this backdrop, Indonesia offers a large and relatively underpenetrated market, supported by foreign-investment flexibility and streamlined [data center] development," UOB Kay Hian says. The brokerage views Indosat, DCI Indonesia and Telkom Indonesia among those that are direct data-center beneficiaries.

 

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