Data Centers Account for 80% of Industrial Land Demand
Data centers account for 80% of industrial land demand in Indonesia as rapid AI growth fuels expansion of digital infrastructure, JLL Indonesia says.
Jakarta – In the past year, data center projects have made up 80 percent of the demand for industrial land in Indonesia, fueled by the rapid rise of artificial intelligence (AI), according to property firm Jones Lang LaSalle (JLL) Indonesia. Farazia Basarah, JLL Indonesia Country Head and Head of Logistics & Industrial, revealed this during a media briefing in Jakarta on Tuesday, August 18, 2026.
AI-driven demand for data centers has surged, causing a significant increase in land requirements. While data centers once needed around five hectares two to three years ago, today, they require between 10 and 30 hectares per facility. Currently, data centers have a combined operational capacity of approximately 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.
The expanding footprints of data centers have also increased their electricity demands, reaching 100 to 200 MW per project. State electricity company PT PLN (Persero) requires about two years to meet the electricity needs of a data center, but Farazia noted that PLN still has sufficient electricity supply. The primary challenge lies in the procurement process for supporting infrastructure, including transformers for substations.
Farazia attributed the rapid expansion of data centers to the growing demand for AI infrastructure. She observed that the pace of development has been so swift that changes are evident not only year over year but also from one quarter to the next. While data center demand has surged, JLL continues to record positive demand across Indonesia's industrial and logistics sectors, with occupancy rates reaching 95 percent.
In the second quarter of 2026, JLL reported 7.55 hectares of newly supplied industrial land, with demand at around 3.56 hectares. The demand for industrial and logistics space remains robust, driven by foreign direct investment (FDI), which accounted for 50 percent of investment in the manufacturing sector during the second quarter. Additionally, manufacturing FDI grew by 7 percent year on year, further bolstering demand for industrial and logistics facilities.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
