29 Jul 2022

Sustainability is Among Top Considerations for Datacenters-related Investments for Indonesia’s Market, IDC Finds

JAKARTA, July 29, 2022 - According to IDC Asia/Pacific excluding Japan (APEJ) Datacenter Survey (2021), about one-third of organizations in Indonesia see sustainability as one of the key considerations when selecting a colocation provider. These organizations identify investments in renewable energy sources and green initiatives as the selection criteria.

“Sustainability is becoming an important issue across APEJ, having implications not only on enterprises but also on their entire supply chain,” says William Lee, Research Director at IDC Asia/Pacific.

Asia/Pacific is experiencing transformation from core to edge, with the emergence of sub-regional datacenter (clusters/hubs) and Jakarta is a top contender for Southeast Asia. As Indonesia marches towards the Industry 4.0 revolution with its “Making Indonesia 4.0” program, the increase in demand for digital infrastructure including datacenter and cloud-related services is indisputable, as it is expected to be the foundation for the country’s digital transformation. Thus, the datacenter industry is challenged to address both the supply shortages issue and the market’s sustainability concerns through more sustainable initiatives.

IDC’s insights determine a shift of workloads to colocation in the Indonesia datacenter market in the coming years after relying on telco-provided resources’ support to deploy edge datacenters. However, with environmental trends disrupting the datacenter industry, about half of APEJ datacenter organizations, including colocation, needs immediate actions and changes to avoid significant impacts and to seize the opportunity. Moreover, innovation on more sustainable operations to mitigate carbon emissions is crucial for developed countries to reach climate goals.

“The datacenter industry is increasingly facing pressure from stakeholders, such as regulators and investors, to make operations more sustainable,” adds Lee.

The IDC report, “Market Analysis Perspective: Indonesia Datacenter Operations and Colocation Market Trends, 2022 ” (IDC #AP46315521), provides a view and insights for technology suppliers to understand the adoption and buyer needs, competitive analysis of key players, and essential guidance of the Indonesia datacenter market. Moreover, this report extracts the key information from IDC's 2021 Asia/Pacific (excluding Japan) Datacenter Survey detailing Indonesian respondents’ technology needs as well as the current and expected adoption in the digital transformation era.

To know more about this report, please contact Shankar Subramaniam at ssubramaniam@idc.com or your IDC account manager. For media queries, please contact Fenny Tjandradinata at ftjandradinata@idc.com or Rosa Arzita Yoelma at ryoelma@idc.com.

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