Data Center: Mapping Indonesia’s Data Center Race: Early- Stage Growth with a Deep Pipeline (OVERWEIGHT)

Stock Code	Last Price	Change	Change %
DCII	201,950	6,150	3.14%
BYAN	13,825	2,300	19.96%
GGRM	17,925	425	2.43%
AGII	3,760	370	10.91%
INCO	4,870	190	4.06%
ULTJ	2,060	160	8.42%
GEMS	7,275	125	1.75%
TRUK	1,420	125	9.65%

Data Center

Mapping Indonesia’s Data Center Race: Early- Stage Growth with a Deep Pipeline

Indonesia’s total installed data center IT capacity stood at 580 MW and projected to reach 3.5GW by 2030.
Jakarta carries 1.7GW of total pipeline against 322MW live today; while Batam adds a 1.4GW pipeline on a 126MW operational base.
TLKM, ISAT, DSSA and DCII offer the most direct listed exposure; MGLV, INET and BNBR are earlier-stage names worth monitoring.

Indonesia as the third leg of regional DC spillover

Indonesia’s total installed data center IT capacity stood at approximately 580 MW as of 1H26 with 55% still located in Jakarta, and market research projected the capacity to reach 3.5 GW by 2030, a 56.7% CAGR over FY26-30F. This build-out is driven by rising cloud and GPU-dense AI infrastructure needs, combined with Singapore rations new capacity under its DC-CFA regime and Johor, the first overflow node, facing tightening power constraints.

Jakarta as a dominant hub, while Batam is building a sizeable pipeline

Jakarta and Batam data center markets remain in an early-growth phase, with capacity still heavily skewed toward the forward pipeline: Jakarta carries a 5.3x pipeline-to-operational ratio, implying 1.7GW of total pipeline against 322MW live today; while Batam adds a 1.4GW pipeline on a 126MW operational base. Batam is a regional-spillover play, with hyperscale dominating the mix (71%), overwhelmingly private and foreign led. Meanwhile, Jakarta is a domestic-demand story where hyperscale is also present (34%) but skewed toward cloud over AI.

Largest pipelines are foreign-backed; Listed names still in early stage

The largest capacity commitments and under-construction assets remain concentrated among private and foreign-backed operators, including DAMAC Digital’s planned 163MW, Princeton Digital’s planned 360MW, ST Telemedia 322MW, GDC’s 200MW, DayOne’s 450MW, EdgeConneX’s 200MW, BW Digital 120MW, and Racks Central 95MW. Meanwhile, several local listed names also offer sizeable growth proxies, with meaningful capacity pipelines yet to be developed.

Early-stage growth with deep pipeline; power and scale are key factors

TLKM (Buy, TP Rp3,500), ISAT (Buy, TP Rp2,500), DSSA (Not Rated) and DCII (Not Rated) offer the most direct listed exposure to the build-out. TLKM's 70% NeutraDC divestment at a US$1.0-1.5bn valuation implies 4.5% upside to our TP of Rp3,650; ISAT’s estimated 30% stake in neocloud Zankore, at 5x EV/EBITDA, implies 35% potential upside from our base-case TP of Rp2,500; DSSA's SMX01 reaches RFS in 4Q26 (18MW, scalable to 60MW); and DCII, the largest pure-play at 128MW live, holds the deepest pipeline, led by the >1,000MW in Bintan. At the frontier, MGLV, INET and BNBR are earlier-stage names worth monitoring as their DC asset bases build. Overall, we are positive on the theme as we see the growth as structural and multi-year. With the market still in its first innings, secured power and operating scale will separate the winners.

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