Indonesia’s AI data center ambition needs a resource rule book
Indonesia is racing to become Asia’s next AI data center powerhouse, but without strict resource safeguards, the boom risks draining the nation’s power grid, water supply and local communities.
Indonesia is aiming to become a leading AI data center hub in Asia, but the growth could put a strain on the country's power grid, water supply, and local communities. BDx, a Singapore-based company, recently broke ground on a 640-megawatt (MW) AI data center campus in Jatiluhur, West Java, with plans for 120 MW of capacity to launch by early 2027.
CoreWeave, another company, announced three facilities totaling 360 MW of contracted power. The Indonesian government is encouraging data center development across the nation beyond Java under its digital infrastructure road map for 2026-2030.
While the goal of becoming a regional AI hub is achievable, it comes with significant systemic demands beyond just financial returns. These include regulatory readiness, decarbonization commitments, technical capacity, and potential negative impacts from operating a resource-intensive industry. The aim to be a leading digital hub is valid, as expanding domestic compute capacity can reduce latency, enhance digital sovereignty, and bolster enterprise cloud adoption, research, and AI development. It can also attract investment, develop specialized talent, and strengthen local supply chains.
However, the government must go beyond promising resource capacity and tackle operational challenges.
Written by urgent.news from The Jakarta Post Academia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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