Data Centers Account for 80% of Industrial Land Demand

August 18, 2026 | 05:50 pm

TEMPO.CO, Jakarta – Data center projects accounted for 80 percent of demand for industrial land in Indonesia over the past year, driven by the rapid growth of artificial intelligence (AI), according to property consultancy Jones Lang LaSalle (JLL) Indonesia.

“Data center demand has increased over the past year due to the growth of AI,” JLL Indonesia Country Head and Head of Logistics & Industrial Farazia Basarah said at a media briefing in Jakarta on Tuesday, August 18, 2026.

Farazia highlighted a significant surge in land requirements for data center projects. She said the amount of land needed had increased from around five hectares two to three years ago to between 10 and 30 hectares per data center today.

Data centers currently have a combined operational capacity of around 450 megawatts (MW), with occupancy rates of about 70 percent in Jakarta’s central business districts (CBDs) and 80 percent in Cikarang, Karawang and East Jakarta, she said.

As data center footprints expand, their electricity requirements have also grown, reaching 100 to 200 MW per project. Farazia said state electricity company PT PLN (Persero) requires a lead time of around two years to meet the electricity needs of a data center.

“And that is only for one data center,” she said.

According to discussions with industry players, Farazia said PLN still had sufficient electricity supply. The main challenge, she said, was the procurement process required to prepare supporting infrastructure, including transformers for substations.

AI fuels data center expansion

Farazia said the rapid expansion of data centers was closely linked to growing demand for AI infrastructure. The pace of development has been so fast that changes are becoming visible not only year to year but also from one quarter to the next, she said.

Despite the surge in data center demand, JLL recorded continued positive demand across Indonesia’s industrial and logistics sectors, with occupancy reaching 95 percent.

In the second quarter of 2026, JLL recorded 7.55 hectares of newly supplied industrial land, while demand stood at around 3.56 hectares.

“Besides manufacturing, the main contributors are clearly sectors related to copper and mining. But the second-largest source of demand comes from other services, particularly data centers,” Farazia said.

She said demand for industrial and logistics space remained resilient in the second quarter, supported by foreign direct investment (FDI), which accounted for 50 percent of investment in the manufacturing sector.

Manufacturing FDI also grew 7 percent year on year in the second quarter, further supporting demand for industrial and logistics facilities, she said.

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