Jakarta, INTI - The Batam Indonesia Free Zone Authority (BP Batam) has announced a US$5 billion investment commitment, equivalent to approximately Rp88 trillion, for the development of a high-density artificial intelligence (AI) data center project in Nongsa, Batam.
The investment will be carried out by PT Equator Gate System Batam (EGSB), a Chinese data center developer fully backed by Range Intelligent Computing Technology Company Limited, one of China’s major data center industry players.
Acting Head of BP Batam Li Claudia Chandra stated that the investment commitment reflects Batam’s readiness to build a sustainable digital ecosystem with global standards.
“The presence of this AI data center investment marks an important momentum in accelerating Batam’s transformation toward a technology, innovation, and digital-based economy,” Li Claudia said in an official statement on Friday, May 29, 2026.
The AI-powered data center project is planned to occupy 30 hectares of land in the Teluk Mata Ikan area of Nongsa, Batam, and will also serve as Range IDC’s first international expansion base outside China.
To ensure the smooth realization of the strategic investment project, BP Batam officially signed a Power Purchase Agreement (PPA) between PT PLN Batam and EGSB to secure reliable electricity supply.
Considering the massive scale of the project, BP Batam emphasized the importance of uninterrupted power availability, as energy reliability remains a key factor in attracting technology-sector investors.
Batam Targets Position as Global Digital Industry Hub
Meanwhile, BP Batam Deputy for Investment Fary Djemy Francis stated that the agency will implement a fast-track execution scheme to accelerate bureaucratic processes and physical project realization.
Fary believes the EGSB project will act as an anchor investment capable of attracting related industries, including cloud computing, semiconductor ecosystems, and other global AI services.
From a socio-economic perspective, the data center operation is projected to create around 700 to 800 professional jobs in the digital technology sector through collaborations with local universities.
Through this transformation, BP Batam is optimistic that Batam will evolve beyond a conventional manufacturing hub and emerge as an execution hub for the global digital industry.
“Batam is no longer developing solely as a manufacturing industrial zone, but is transforming into an execution hub of the global digital industry,” Fary concluded.
Conclusion
The massive AI data center investment in Batam reflects Indonesia’s growing attractiveness as a regional digital infrastructure hub. Supported by reliable energy supply, strategic connectivity, and fast-track investment policies, the project is expected to accelerate Batam’s transformation into a global digital industry center while driving the growth of AI, cloud computing, and other technology ecosystems.
Read more: Indonesia Investment Authority (INA) Joins the Data Center Investment Trend