REPUBLIKA.CO.ID, JAKARTA -- DatacenterDynamics Intelligence's (DCDi's) study estimates that the total investment value of equipment and data center solutions in Indonesia would reach US$850 million by 2020, an over 70 percent increase compared to $480 million in 2016.
The study is part of a global initiative census conducted by DCDi and was presented in "Indonesia's Data Center Market Overview and Forecasts 2014-2020," according to a press release from the company received by Antara here on Friday.
This positive projection encourages the data center industry in Indonesia to grow following an increase in demand and investment.
By 2020, the land requirements for data centers are projected to reach 375 thousand square meters, an increase of 29 percent of the projected 290 thousand square meters in 2016.
Meanwhile, the need for electricity is 475 megawatts (MW), up by 44 percent from the projection of 330 MW in 2016.
"Global IT industry players are surprised by the growth in the markets in Indonesia and also the high interest shown by the local players to stay abreast of the technological developments in the industry," Vincent Liew, the general manager of DCDi for South East Asia, remarked.
Liew believes that several challenges still lay ahead, such as the explosion of data, regulations, and also additional costs to be incurred due to disruptive innovations.
Liew explained that some real challenges today include the growing number of companies that transfer their infrastructure to co-location providers.
"In order to enhance their capabilities, several local companies have established partnerships with leading data center operators in the world, such as NTT Communications, Equinix, and Telstra," he pointed out.
The study also reveals a growth in the number of end users, especially decision makers in the fields of e-commerce and finance, who will invest in co-location and outsourcing.
The investment value in these two areas is forecast to reach $320 million by 2020, an increase of some 83 percent of the projected $175 million in 2016.
DCDi is a B2B information service provider company that organizes a series of events, specifically for the data center industry.
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