The Green Data Center Opportunity in Indonesia is a huge opportunity for data center providers in EU and North America.
Indonesia Data Center Market Overview
In Indonesia, Jakarta is a selective location having better network connectivity & accessibility to the end-users to improve the action. Due to Covid-19, Indonesia is witnessing growth in cloud adoption by several industries like businesses, government agencies, & education institutions. Therefore, AWS, Microsoft, Google, & Alibaba Cloud are some cloud service providers in the country.
Telecom and Colocation operators are currently dominating Indonesia’s data center market. Also, this market is observing the entrance of new investors, like Data Center 1st plans to construct data centers in Indonesia.
According to the Indonesian Finance Minister, the government provides tax inducements to the data center industry to invest in Indonesia. More than $2.10 billion in investment will get a tax reduction for around 20 years.
The data center operators are acquiring renewable energy to operate their operations. For example, DCI Indonesia opened its 1st phase in the H2 data center campus with a power capacity of around 15 Megawatt. The campus will get power from solar farms constructed inside the campus.
In Indonesia, free Trade zones attract data center operators to invest here by enabling various tax inducements for the data centers constructed in the FTZs. In November 2021, GDS Services obtained land in Nongsa Digital Park to build two data center buildings with 107,600 square feet and a power capacity of around 28 Megawatt.
Green Data Center Opportunities of Investment in Indonesia
The Indonesian Data Center market has a value of USD 1.67 billion in 2021 and can grow to approximately USD 3.43 billion by 2027. The Compound Annual Growth Rate (CAGR) can reach 13.15% from 2022 to 2027. One of the critical sources of growth is the region’s increasing internet economy.
The SEA region’s internet economy is worth over USD 100 billion, according to SpaceDC’s upper management. By 2025, it can expand to USD 300 billion. As a result, the demand for data services & infrastructure will grow quickly throughout the forecast period.
SpaceDC’s Natural Gas-Powered Green Data Center Campus
Jakarta’s first Green data center campus is strategically located within the Jakarta metropolitan area and adjacent to 2 major gas pipelines. It taps on Indonesia’s natural gas supply to produce electricity to power its premises, delivering fewer CO2 emissions than a coal-powered grid. It is the foremost data center to use Jakarta’s natural gas network to produce electricity.
What makes SpaceDC’s data center more energy efficient, flexible, and resilient? The reason is its usage of onsite gas generators rather than depending on the regular electric grid as a power source, which is the standard energy source for most Indonesian data centers.
The onsite gas generators setup at SpaceDC’s campus will not suffer distribution losses as it doesn’t require transmitting the electricity over long distances.
Additionally, the data center can recycle waste heat from the gas generators. They do so by passing it through a heat exchanger in the absorption chillers, which produces more chilled water for its Cold Room AC, which cools down the data center halls.
Arrangements like these are undoubtedly easy to replace globally. Not every data center will aid from the same prosperous fuel source as SpaceDC’s campus in Indonesia. Also, not all Green data center opportunities can take benefit from a cooler climate, mostly in tropical Southeast Asian regions. Here temperatures are warm throughout the year.
However, for few markets that can make the most of their natural surroundings, these creative solutions can set the foundation for a sustainable and energy-efficient center for cloud services, lessening the environmental influence of data centers.
European Green Data Center Market Segments
- UPS systems are widely adopted to give backup power for cooling systems installed in the facility. Cooling systems are necessary for the smooth running of data centers. Maintaining an optimum temperature will avoid crashes due to overheating. Lithium-ion battery adoption will likely rise as their costs continue to decrease during the forecast period.
- The increasing deployment of edge data centers having a total power capacity of less than 1 Megawatt leads to the adoption of generator systems bearing a capacity of 0-1.5 Megawatt. The construction of hyper-scale facilities in developing areas will also decrease the demand for low-capacity generators in the market.
European data center operators have been early adopters of Sustainable and Green innovations in power technology, like eco diesel, natural gas generators, & HVO fuel. Green data center example, Interxion (Digital Realty), has started replacing diesel with HVO for powering its backup generators, with the 1st one being in its PAR08 data center in Paris, France.
The European market is increasingly acquiring software-defined power infrastructure in data centers. Green data center example such as Equinix utilizes its data center to monitor the software platform IBX SmartView, which provides operators insights into the data center infrastructure.
Several local governments support the region’s adoption of renewable energy by data center operators. The French government has accepted more than 250 wind & solar power generation projects with a capacity of nearly 2 Gigawatt in their homeland.
Green Data Center Opportunities in the US
Microsoft’s Underwater Data Center
Microsoft operators have developed a self-sufficient underwater data center that uses submarine technology to deliver lightning-quick cloud services to coastal areas.
Apple’s North Carolina Data Center
Apple’s data center in North Carolina relies on its power-generating facilities. They combine two 100-acre solar farms with multiple fuel cell electricity generators utilizing biogas from nearby landfills.
Facebook’s Hydropower Plant in Northern Sweden
Using existing hydropower, Facebook’s data center in Lulea, Sweden, operates 100% on locally generated renewable energy. Moreover, it consumes natural free cooling from the outside air to cool down the racks that carry data & perform the marketing for today’s digital economies.
Trends show that more and more data center providers will move to green infrastructure and adopt renewable energy as prices decreases. Moreover, these moves can’t come soon enough for enterprises that know that 80% of US consumers care about using renewable energy.
Green data centers opportunities toward a more sustainable environment while helping tenants find greater efficiency & success. Selecting these centers is the smart choice for any organization, no matter its size, to save money & operate more sustainably.