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View all search resultsBusiness players warn against confining data centers to industrial estates
The country’s installed capacity stands at about 468 megawatts, with more than 1.5 gigawatts under construction and another 4.6 GW in the pipeline.
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A Microsoft data center is seen under construction on Feb. 4, 2026, in Karawang, West Java. (AFP/Yasuyoshi Chiba)
D
ata center players are pushing back against a government plan to confine new facilities to industrial estates, fearing it could drive up costs and limit site options as demand surges on the back of artificial intelligence.
The industry is urging the government to avoid a blanket rule, arguing that data centers vary in scale and function, with some needing to sit closer to end users, according to the Indonesia Data Center Ecosystem Council (IDCEC).
Operators needed greater clarity on utility tariffs, infrastructure provision, permit procedures and connection timelines, the council said.
Forcing development into industrial estates could “entail significant investment costs, complex system migration, operational disruptions and risks to security and service continuity,” IDCEC chairman Nawi Jaya told The Jakarta Post on Monday.
Read also: Data center project should not be halted amid policy rift: Ministry
Companies operating data centers for internal use had expressed concerns that the proposal could force them to move facilities away from existing offices or operational sites, he added.
As the global rush to AI accelerates and deals proliferate, data center investments have also been piling up in Southeast Asia’s largest economy, along with concerns over the vast amounts of electricity and water needed to keep them running.
