Indonesia eyes new data centre hubs as extra power needs reach 20 GW
The government is promoting Batam, Karimun and Bintan as data centre locations while preparing electricity supplies and rules on local business partnerships.
Indonesia’s data centres are estimated to need an additional 20 gigawatts (GW) of electricity, equivalent to 20 per cent of the country’s existing power capacity, Energy and Mineral Resources Minister Bahlil Lahadalia said at Bali Tech Week 2026 in Denpasar on 19 October.
Bahlil said adequate energy supplies, particularly clean power, were essential to attracting regional data centre investment. The government is promoting Batam, Karimun and Bintan as new hubs. He cited their water availability, lower population density than West Java, Jakarta or Bali, and opportunities for renewable energy development.
Rising demand is being driven by artificial intelligence. Cloud-era data centres require around 10–30 megawatts (MW), while AI facilities can need between 100 MW and 1 GW. Electricity, water, fibre-optic connectivity and site readiness are key factors in whether investments proceed.
Batam has 1.47 GW of data centre capacity across existing facilities, committed projects and developments under way. PLN Batam and DayOne have also signed a 450 MW electricity supply contract, described as Indonesia’s largest for a data centre.
PLN’s 2025–2034 electricity supply plan targets 69.5 GW of additional capacity: 42.6 GW from new and renewable energy, 10.3 GW from energy storage and 16.6 GW from fossil-fuel generation. The plan carries potential investment of Rp2,967.4 trillion.
Bahlil also outlined plans for about 100 gigawatt-peak of solar capacity, spanning large-scale, floating, rooftop and industrial-estate installations. He said the government would seek proposed locations from prospective data centre investors so it could prepare power supplies. Rules requiring investors to partner with national and regional businesses are also being prepared.
