Google Cloud expands AI-ready data center capacity in Indonesia

Google Cloud’s Jakarta cloud region is expected to contribute US$88 billion in economic value to Indonesia over the next five years.

As the fourth most populous country in the world and also home to the fastest growing digital economy in the region, Indonesia’s tech ecosystem plays an important role in ensuring the country is capable of supporting the demands of both the public and private sector.

Over the years, tech vendors continue to invest heavily in developing the infrastructure in Indonesia, with Jakarta being the prime area for data centers in the country. There are currently about 139 data centers in the country, each catering to specific vendors and needs of the market.

For Google Cloud, Indonesia is a market with immense opportunities. As the first global hyperscaler to launch a cloud region in Indonesia in 2020, the Jakarta cloud region has already contributed up to US$55 billion in economic value to Indonesia over the past five years, supporting an average of 92,000 jobs per year as well.

Given the increasing demand for more compute, especially with organizations in Indonesia looking to embrace AI capabilities to drive new competitive advantages, uplift workforce productivity, and enhance public services, Google Cloud will be expanding the computing capacity of its Jakarta cloud region to meet the demands.

The Jakarta cloud region consists of interconnected, large-capacity data centers located in-country. These data centers house servers, silicon chips, storage devices, and networking equipment, serving as the physical infrastructure that delivers Google Cloud’s high-performance services. The expansion is expected to contribute a further US$88 billion in economic value to Indonesia and support an average of nearly 240,000 jobs per year.

According to Fanly Tanto, Country Director, Indonesia, Google Cloud, “Google Cloud’s Jakarta cloud region powers many essential services for Indonesian organizations, from Bio Farma’s research and development of vaccines to the Ministry of Primary and Secondary Education’s delivery of teaching and learning experiences, to digital banking, e-commerce, food deliveries, remote work, and more.”

Tanto added that by migrating their systems and applications from on-premises environments to Google Cloud, enterprises in Indonesia have optimized their annual technology spending by more than 20% on average. They have then redeployed these cost savings toward strategic data and AI innovation initiatives that help them gain a new competitive edge and generate top-line business growth.

The expanded data center capacity advances Indonesia’s AI ambitions as it supports platforms like BigQuery and VertexAI, core tools that democratize access to the software tools organizations need to build and deploy GenAI and Agentic AI use cases as well as customize AI models for specific functions and purposes.

“Google Cloud is the pioneer in delivering cloud computing in Indonesia, fueling the growth of the country’s digital economy for over half a decade. While other global hyperscalers are now just entering the market, we have already proven our value and are going a step further,” added Tanto.

Tanto also mentioned that under Google’s Bangkit Bersama AI (Rise Together with AI) initiative to advance the government’s Golden Indonesia 2045 vision and National Strategy for AI, Google Cloud is increasing the computing capacity of the Jakarta cloud region to address surging local demand for cloud services.

“This expanded computing capacity means we have brought to Indonesia and Indonesian organizations next-generation silicon and software capabilities that are fully-integrated and purpose-built for the AI era,” said Tanto.

The Jakarta cloud region is connected to Google’s planet-scale private network, which delivers high-bandwidth and near-zero latency connectivity. This network consists of more than two million miles of fiber (i.e., terrestrial and subsea cables) across over 200 countries and territories, including Indonesia, creating a truly global and resilient foundation for an AI-powered future.

With three zones, the Jakarta cloud region allows organizations to store and process their data within Indonesia’s borders. As a result, they can confidently embrace Google Cloud services to accelerate transformation while honoring their data residency commitments in compliance with local regulations and industry standards.

Additionally, the Jakarta cloud region enables high-availability, reliable workloads while providing backup and disaster recovery options for organizations. On average, an organization in Indonesia sees reduced unplanned application downtime by more than 50% after transitioning to Google Cloud from its on-premises environment.