Indonesia expands data centre development to Eastern Regions through new roadmap
The government's efforts to expand data centre development to Eastern Indonesia need to be supported by a ready electricity infrastructure, connectivity and capable talent.
The Ministry of Communication and Digital Affairs is exploring opportunities to establish new data centres in Eastern Indonesia to boost economic equity: Image: Canva
Indonesia wants to expand its data centre development from the island of Java-Bali into Eastern Indonesia.
The Ministry of Communication and Digital Affairs’ Working Group Chairman for Digital Infrastructure, Benny Elian, said the government is currently identifying several new locations outside the country’s existing data centre hubs.
This aligns with the newly-launched 2026-2030 Digital Infrastructure Development roadmap from his ministry and the Ministry of National Development Planning Agency (Bappenas), he added.
Currently, there are around 150 data centres in Indonesia, with 137 facilities located on the island of Java-Bali. Of that number, 60 facilities are located in West Java Province, and 50 are located in Jakarta Province.
Elian was speaking in a panel discussion titled “Powering the future: Are we ready to become the next Asia's data centre hub?” on August 28 in Jakarta.
Talks are underway with the Ministry of Energy and Mineral Resources and the State Electricity Company (PLN) to determine the new locations outside Jakarta and the island of Java, he added.
This move is expected to encourage more even distribution of digital infrastructure, underpin the digital economy and support the development of artificial intelligence (AI), while also strengthening Indonesia's position as one of Asia's data centre hubs.
Advancing special data centre zones
According to Elian, expanding development to the Eastern regions isn’t just about moving facilities.
It’s unlocking broader infrastructure growth in areas that have long shown potential but never quite delivered on it.
He acknowledged that building new data centres requires more coordinated planning and involves collaboration among more stakeholders.
"One [approach] we will take is how this data centre development can be integrated within a single special zone," he said.
With this approach, the government ensures that the new locations not only have available land, but also secure the energy supply and connectivity that operators need.
Indonesia's National Electricity Company (PLN)'s Vice President of Acquisition, Customers and Special Services, Fauzi Arubusman, said that PLN currently produces around 3,000 MW of electricity to service data centres in the country.
Given the rapid pace of data centre growth, he estimated that demand would surge to more than triple that figure.
"The capacity requests that have come in to us total roughly 9,220 MW," he said.
Meeting this demand poses a challenge for PLN not just in preparing generation capacity, but also in building the transmission and distribution networks needed to connect power sources to data centre zones.
"Determining locations from the outset can help PLN plan energy infrastructure requirements more effectively," he added.
Arabusman noted that new locations in the Eastern regions, which are rich in renewable energy sources, could be an attractive draw for investors.
To comply with green data centre regulations, PLN offers the Green Energy as a Service (GEAS) scheme for corporate customers who require green energy supply.
He highlighted that through the scheme, corporate buyers are already tapping on renewable energy, like solar power, generated through the projects.
Supply chain ecosystem challenges
Several panellists from the private sector discussed the supply chain challenges of data centre development in Eastern Indonesia.
Indonesian Electrical Equipment Manufacturers Association (APPI)’s Chairman, Yohanes Widjaja, said Indonesia already has a local industrial base that can form part of the supply chain, with around 15 transformer factories and 48 cable factories.
A number of manufacturers have even exported their products to Malaysia, Singapore and the US.
However, as development spreads further into the Eastern regions, the supply chain's ability to support projects in more remote locations will also become a consideration.
"This covers not only the availability of equipment, but also the ability to provide ongoing services and technical support," said Widjaja.
A similar need applies to human resources.
Uptima Institute’s Senior Sales Director for Singapore, Indonesia, Brunei and Timor-Leste,
Laurensius Then, assessed that Indonesia already has strong capabilities in building data centres and is currently competitive with Malaysia in this regard.
However, the ability to build facilities needs to be matched by the ability to operate them.
"The issue is, we can build them, but the resources to operate them are not yet sufficient. That's why having a capable pool of human resources becomes very important," he said.
Operators need professional talent to handle various stages, from contracting and commissioning through to facility operations.
This means that expanding data centres into the Eastern regions must also be accompanied by local capacity-building.
Without adequate human resources and industrial ecosystems, new facility development could face challenges in maintaining operational reliability, he said.
