{
  "id": 1725930,
  "title": "How Indonesia Emerged as a Data Center Hotspot After Singapore",
  "url": "https://urgent.news/2026/08/18/how-indonesia-emerged-as-a-data-center-hotspot-after-singapore",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-18T14:25:49.000Z",
  "source": {
    "name": "Tempo.co English",
    "slug": "tempo-co-english",
    "url": "https://en.tempo.co/read/2117796/how-indonesia-emerged-as-a-data-center-hotspot-after-singapore"
  },
  "original_language": "en",
  "account": "Indonesia has become a rising star in the data center industry, following Singapore's lead, according to Jones Lang LaSalle (JLL) Indonesia. Farazia Basarah, Country Head and Head of Logistics & Industrial at JLL Indonesia, revealed that data center projects have reached the second position in terms of industrial land demand, just behind manufacturing. The primary drivers, aside from manufacturing, are copper and mining-related services, with data centers emerging as the second-largest demand source.\n\nInitially, data centers were concentrated in Singapore. However, due to the Singapore government's moratorium on new data center constructions, caused by their high electricity consumption, investors redirected their focus to Johor Bahru, Malaysia, and Batam, Riau Islands. Nevertheless, the investors started to create disturbances by building data centers in commercial and residential areas, prompting local governments to ban further expansion.\n\nRecognizing the need to accommodate the growing demand for data centers, Indonesia is now able to absorb these requirements, especially in Batam and Jakarta. The Indonesian government also aims to create a robust technology industry ecosystem, not just as a data center hub, but also by fostering domestic technology companies. For instance, the Nongsa Digital Park Special Economic Zone in Batam, which plans to transform into an AI factory, is an example of such endeavors. Farazia explained that AI technology production centers, such as microchip production centers, can generate significant multiplier effects, including job creation.\n\nThe surge in land demand for data center projects is primarily driven by the need to cater to the rising requirements of AI technology. A single data center used to require about 5 hectares of land two to three years ago, but now, the requirement has jumped to 10–30 hectares per facility. Farazia estimates that the power capacity of currently built and operational data centers in Indonesia is around 450 megawatts (MW), with an occupancy rate of around 70 percent in Jakarta's business districts and 80 percent in Cikarang, Karawang, and East Jakarta. Additionally, electricity demand for data centers is rising, reaching between 100–200 megawatts per project.\n\nTo meet this demand, PT PLN requires approximately two years for the procurement process of preparing infrastructure, such as transformers for substations. While PLN has an ample electricity supply, the challenge lies in the procurement process for infrastructure preparation. Farazia concluded that PLN has enough electricity, but the infrastructure preparation process is the bottleneck.",
  "summary": "Indonesia is capable of absorbing data center demand, both in Batam and Jakarta. There is an increase in demand for land for data center projects.",
  "key_points": [
    "Data centers now rank second in industrial land demand in Indonesia, behind manufacturing.",
    "Singapore's moratorium on new data center constructions redirected investors to Indonesia."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}