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AI’s Growing Energy and Water Demand Presents Opportunities for Indonesia, Stella Says

5 hours ago | Artificial Intelligence


Jakarta, INTI - Artificial intelligence (AI) requires far more than advanced computing power. As the technology becomes increasingly widespread, its growing use is also driving higher demand for electricity and water.

Deputy Minister of Higher Education, Science, and Technology Stella Christie said the amount of energy currently required to power AI systems has become significant.

Stella cited data on AI-related electricity consumption from data centers in the United States, noting that the demand could be compared with the annual energy consumption of several European countries.

“AI is extraordinarily energy-intensive. How intensive is it? Look at these data centers in the United States. When combined, AI data centers currently consume around 155 trillion watt-hours,” Stella said in a recent post on her personal Instagram account.

She said the figure is expected to continue rising, potentially reaching 465 trillion watt-hours by 2030.

To illustrate the scale, Stella compared AI’s electricity consumption with the annual energy use of several European countries.

She said AI-related electricity consumption was equivalent to Latvia’s annual consumption last year and could correspond to Romania’s consumption this year. By 2028, the figure could be comparable to Italy’s electricity use, followed by the United Kingdom in 2029. Beyond that, she said, the scale could exceed the electricity consumption of any European country.

However, Stella emphasized that electricity is not the only resource required by AI. The development and operation of AI systems also consume significant amounts of water, particularly through the energy and cooling infrastructure needed to support data centers.

“AI is not only extremely energy-intensive. Last year, the amount of water consumed through AI-related activities was equivalent to the annual drinking water needs of 1.2 million people,” she said.

According to Stella, energy availability, not chips or semiconductors, could become one of the key factors determining the future expansion of AI.

Indonesia’s Renewable Energy Potential

Despite the challenges, Stella sees the growing energy requirements of AI as a potential opportunity for Indonesia.

She pointed to the country’s abundant energy resources, particularly renewable energy sources such as solar, wind, and geothermal power.

“This is interesting for Indonesia because it creates an opportunity. We have energy resources, particularly renewable energy. Solar and wind are well known, but many may not realize that Indonesia has the world’s second-largest geothermal reserves, which have yet to be fully optimized,” Stella said.

Her remarks align with the Ministry of Higher Education, Science, and Technology’s efforts to encourage greater use of renewable energy to support the development of AI-powered data centers.

The government sees effective development and management of renewable energy resources as a potential way for Indonesia to play a larger role in the global data center and AI ecosystem.

Stella also highlighted recent findings regarding Indonesia’s potential natural hydrogen reserves, which she described as potentially among the largest in the world. She said the resource could represent another area worth exploring as Indonesia seeks to expand its energy capacity.

“We recently discovered that our natural hydrogen reserves could potentially be among the largest in the world. This is a new discovery, so we have an opportunity. I want us to explore and discuss it further,” she said.

Stella therefore urged that AI’s resource consumption not be viewed solely as a challenge. While the technology requires substantial amounts of electricity and water, the growing demand could also create opportunities for Indonesia if the country can develop and utilize its energy resources effectively.

“AI can be concerning because of its enormous demand for energy and water. But we could also become a leader because we have the opportunity and abundant energy resources,” Stella said.

Conclusion 

AI’s growing demand for electricity and water presents both challenges and opportunities for Indonesia. With abundant renewable energy resources, including geothermal, solar, wind, and potential natural hydrogen, Indonesia could strengthen its position in the expanding AI and data center ecosystem through sustainable energy development.

Read more: Pertamina Leverages AI to Optimize Fuel Distribution Across Indonesia

Indonesia Technology & Innovation
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