Data center demand drives industrial land growth in Indonesia

Demand for industrial land in Indonesia, particularly within the Greater Jakarta area, is being driven significantly by the data center sector and the growth of artificial intelligence. According to JLL Indonesia, approximately 80 percent of industrial land requests within their research scope currently originate from the data center sector. The scale of these requirements is increasing, with land needs rising from roughly 5 hectares per project a few years ago to between 10 and 30 hectares per center today.

This expansion necessitates robust infrastructure, specifically high-capacity electricity and clean water supplies. A single data center can require between 100 MW and 200 MW of power. Currently, operating data center capacity in the region has reached approximately 450 MW, with occupancy rates around 70 percent in Jakarta's CBD and 80 percent in areas such as Cikarang and Karawang.

Knight Frank Indonesia reports that Bekasi and Karawang remain the primary sub-markets for the largest land transactions. In addition to data centers, industrial land demand is being fueled by the food and beverage sector, manufacturing, and the emerging electric vehicle ecosystem.