Jakarta, INTI - The rapid expansion of data center and artificial intelligence (AI) investments in Batam has raised public concerns over the potential impact on water and electricity availability. Because data centers require significant power and large volumes of water for cooling systems, residents have questioned whether the growing digital industry could reduce access to essential utilities.
Responding to these concerns, BP Batam Chief and Batam Mayor Amsakar Achmad emphasized that the government has anticipated these challenges since the early stages of investment planning. He explained that every investor is required to provide a detailed assessment of projected electricity and clean water demand before receiving project approval.
"If investment is accepted without properly anticipating water and electricity requirements, public confidence in Batam's vision as Indonesia's investment hub would be undermined," Amsakar said following a Batam City Council plenary session on 8 July 2026.
The statement comes as Batam experiences a surge in digital infrastructure investment valued at approximately Rp120 trillion, while the city continues to face limitations in raw water resources and has not added new reservoirs in recent years.
Infrastructure Preparedness as an Investment Requirement
According to Amsakar, the reliability of public utilities is one of the government's primary considerations when evaluating investment proposals. Authorities assess not only the investment value but also whether supporting infrastructure can accommodate industrial demand without affecting public services.
He cited the DayOne data center project as an example, explaining that discussions focused heavily on the reliability of electricity and clean water infrastructure. Where existing utility capacity is insufficient, investors are expected to participate in developing supporting infrastructure, including water pipelines and additional clean water supply facilities.
"We openly explained the existing distribution challenges and asked whether investors were willing to contribute to the necessary infrastructure improvements. They agreed," he said.
The government has also discussed future risks related to declining raw water reserves. Investors have expressed their willingness to help expand water supply capacity if required. Once cooperation agreements conclude, the supporting infrastructure developed by investors will be transferred to the government in accordance with applicable regulations.
Data Centers Will Not Reduce Public Water and Electricity Supply
Amsakar stressed that all potential risks and mitigation measures have been carefully evaluated, assuring residents that data center operations will not reduce water or electricity availability for households.
He also dismissed claims that recent water distribution disruptions in areas such as Sengkuang and Batuampar were caused by data center development, noting that most projects have not yet begun commercial operations.
"Data centers are not even operational yet, but the water shortages already existed," he said, explaining that Batam's water distribution issues are longstanding infrastructure challenges that require long-term improvements rather than being linked to new digital investments.
In addition to addressing utility concerns, Amsakar responded to criticism that data centers generate fewer jobs than labour-intensive manufacturing industries, emphasizing that the government continues to balance investment growth with infrastructure readiness and long-term economic benefits for the region.
Conclusion
Batam's government has reaffirmed that the expansion of data centers and AI investments will be supported by adequate infrastructure planning to ensure residents' access to water and electricity remains unaffected. By requiring investors to contribute to utility development where necessary, the city aims to foster sustainable digital investment while protecting public services and strengthening confidence in Batam as Indonesia's leading digital investment destination.
Read more: Batam Emerges as a Growing Data Center Hub with 22% Expansion, Says Airlangga