Data Center Continues to Dominate Industrial Land Demand

The year 2024 sheds light on the data center sector, which continues to dominate the demand for industrial land in Indonesia. According to the Head of Research at Colliers Indonesia, Ferry Salanto, the demand for industrial land remains predominantly driven by the data center sector throughout 2024.

The rapid growth of information technology, digital transformation, and deepening internet penetration are the primary drivers of this demand. Moreover, the surging interest in big data and artificial intelligence (AI) also contributes significantly to driving this demand even higher.

Despite data centers taking the lead role, Ferry also notes demand coming from various other industrial segments. Sectors such as automotive, fast-moving consumer goods (FMCG), chemicals, logistics, electric vehicles, and others are also contributing to the demand for industrial land. This indicates that data infrastructure is not the sole factor propelling industrial growth but also other factors like manufacturing, trade, and logistics.

One crucial aspect is the certainty of law and transparent regulations within industrial zones. This condition creates a stable and attractive environment for investors, opening up opportunities for sustainable growth in the future.

Although the demand for industrial land has experienced significant growth, Ferry believes there is still untapped growth potential within industrial zones. Additionally, land sales in Indonesian industrial zones still offer significant opportunities for investors and developers.

 

Source: KOMPAS.com


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