Data Center Markets in Colombia and Indonesia to See Major Growth by 2030

Colombia's Data Center Market Analysis and Growth Opportunities A recent market report highlights that Colombia's data center market, currently valued at $442 million in 2024, is poised to reach $1.16 billion by 2030, representing a Compound Annual Growth Rate (CAGR) of 17.55%. This comprehensive study assesses various aspects of Colombia’s digital infrastructure investments, including those of global and regional operators like ODATA (formerly Aligned Data Centers), Equinix, DHAmericas, KIO Networks, Claro, Tecto Data Centers (V.tal), Cirion Technologies, and HostDime. These companies play a crucial role in building and enhancing Colombia’s data center capabilities. Market Highlights Several key players have emerged in Colombia's data center sector, each contributing to the market's expansion. In October 2024, ODATA announced a significant investment of $1.3 billion to construct two new data centers, BG02 and BG03, in Bogotá. These facilities are expected to be operational by the end of 2026, significantly boosting the nation's digital infrastructure. Meanwhile, DHAmericas opened its first data center in the Western Free Trade Zone (ZFO) of the Bogotá metropolitan area. The company plans to develop an additional five data centers in Bogotá over the next 3-4 years, further driving market growth. Current Market Status and Future Prospects The report delves into existing and upcoming data center projects, analyzing investments in IT, power, cooling, and general construction. Colombia is witnessing robust growth, with several major projects either underway or set to commence soon. The continuous adoption of new technologies and the expanding digital economy are expected to attract more businesses and investors, ensuring sustained market momentum. Trends and Opportunities The data center market in Colombia is marked by technological innovations and favorable government policies. Advances in data center construction and operations, combined with strong governmental support for digital infrastructure, are key drivers of market growth. Additionally, increasing demand for cloud computing and big data services presents new opportunities for expansion. For instance, the rise of edge computing is making data processing and storage more efficient and accessible. Industry Overview The report also provides insights into the leading IT infrastructure suppliers, construction contractors, and investors. It outlines their business activities and product offerings, using transparent research methodologies to offer valuable guidance on market dynamics. With 111 pages of detailed analysis, covering forecasts from 2024 to 2030, the report includes specific data on the size and investment estimates of various market segments. Industry insiders are highly optimistic about Colombia’s data center market. They attribute this optimism to supportive government policies, steady economic growth, and rising demand for digital services. Luis Neves, General Manager of Equinix Latin America, stated that constructing data centers in Colombia will enhance local data processing capabilities and attract international businesses and investors, fostering broader digital transformation across Latin America. Colombia’s strategic location and growing economy make it well-suited to become a regional digital hub. The entry of new players like Ascenty, EdgeConneX, and Scala Data Centers is intensifying competition and promoting innovation and market expansion. Indonesia's Data Center Market Analysis and Growth Opportunities In 2024, the Indonesian data center market is estimated to be worth $2.39 billion, with projections indicating it will reach $3.79 billion by 2030, marking a CAGR of 7.99%. This growth is driven by the widespread adoption of cloud computing services, favorable government policies, and active participation from both domestic and international enterprises. Market Overview Indonesia currently hosts around 80 third-party data center facilities, primarily concentrated in the capital city of Jakarta. Wholesale colocation services dominate the market, offering higher capacity and market share compared to retail colocation. The surge in demand for cloud services is anticipated to further enhance the popularity of wholesale colocation. Global cloud giants such as Microsoft, Amazon Web Services (AWS), Tencent Cloud, Huawei Cloud, Google Cloud, and Alibaba Cloud are actively establishing and expanding their data center operations in Jakarta, fueling market expansion. Technological Advancements and Green Economy Sustainability is a growing focus in Indonesia’s data center industry, with the adoption of liquid cooling technology gaining traction. Liquid cooling is becoming a transformative solution due to the increasing power consumption and heat generation in data centers, especially as AI and cloud services grow. ST Telemedia Global Data Centres announced in June 2024 that it would expand its AI-ready data centers in Southeast Asia, including Indonesia, by collaborating with multiple partners and implementing advanced cooling techniques. Government Support and Policies The Indonesian government is committed to promoting a green economy and has set an ambitious target to achieve net-zero emissions by 2060. To support this goal, the government has introduced carbon taxes and a range of measures to foster green economic development. These policies, while beneficial for environmental protection, also provide new growth opportunities for the data center industry. Although power costs are moderate compared to Thailand and Singapore, the government’s initiatives increase confidence among companies investing in green data centers. Key Market Players Local and international companies are leading the charge in Indonesia’s data center market. Princeton Digital Group, Telkom Indonesia, and NTT DATA are major contributors, having established multiple data centers with plans for further expansion. New entrants like Equinix, Gaw Capital, DayOne, and EdgeConneX are ramping up investments, potentially accelerating market growth. Investment Opportunities The market report offers a detailed analysis of investment trends, segmented by area, power capacity, and revenue from colocation services. It covers both existing and forthcoming projects, providing clear investment recommendations based on various cities' data center capacities and power availability. This granular data enables companies to make informed decisions about where and how to invest. Industry Expert Opinions Experts are bullish on Indonesia’s data center market prospects. The government’s green policies and substantial investments in the digital economy provide solid support, while the influx of global cloud providers is accelerating local technological and infrastructural advancements. A senior executive at Princeton Digital Group noted that the company’s expansion in Indonesia is a critical component of its global strategy, with significant growth expected in the coming years. Company Profiles ResearchAndMarkets.com, a leading platform for market research and data resources, provided extensive reports on the data center markets in Colombia and Indonesia. For more detailed insights and the latest trends, interested parties can visit the company's website. Overall, Indonesia’s data center market is experiencing rapid growth, underpinned by its commitment to green initiatives and the burgeoning demand for cloud computing services. This presents a promising landscape for investors and companies looking to capitalize on the region’s potential.