Jakarta, INTI - The development of data centers in Indonesia is expected to require adequate access to clean energy supplies.
To meet this demand in the short term, solar power plants (PLTS) are being considered one of the most feasible renewable energy options that can be deployed relatively quickly.
Managing Director of the Energy Shift Institute (ESI) Putra Adhiguna said solar power represents one of the most realistic short-term solutions for supporting data center energy requirements.
“On a certain scale, solar power is the most feasible renewable energy source to develop within a relatively short timeframe, as its construction period is shorter compared with other types of power plants,” Putra told Bloomberg Technoz on Thursday (September 24, 2026).
According to ESI data, developing a solar power project from the initial stage to full operation, or commercial operation date (COD), generally takes around 1.5 to three years.
The process is divided into two main phases: non-construction development and physical construction.
The initial phase includes feasibility studies, land acquisition, environmental impact assessments (Amdal), as well as power purchase agreements (PPAs) or permits to connect to the network of state electricity company PT PLN (Persero).
This administrative and permitting phase can often be the most time-consuming, taking approximately one to two years before physical construction begins.
Nevertheless, other renewable energy projects, including geothermal and hydropower plants, will still need to be carefully planned for the medium and long term.
Putra also warned against allowing data centers to absorb all of the cheapest available green electricity from renewable energy projects.
Such a situation could leave other industries and communities dependent on renewable electricity generated from more expensive projects.
Regarding financial capacity, Putra said data center operators seeking green electricity generally have the ability to pay a premium for renewable power.
However, achieving a 100% green electricity supply immediately remains challenging.
“Data centers typically increase their green energy mix gradually through rooftop solar installations, solar projects within industrial areas, and connections to larger-scale renewable energy projects,” he said.
Indonesia Positions Clean Energy as a Data Center Advantage
Previously, Energy and Mineral Resources Minister Bahlil Lahadalia openly encouraged global investors to invest in Indonesia’s data center industry.
Bahlil highlighted the global situation in which several countries are beginning to face shortages and limitations in clean energy supplies needed to support data center operations.
Against this backdrop, Indonesia is positioning itself as a potential source of stable, large-scale, and geographically distributed environmentally friendly electricity.
“We know that energy demand in several countries is already putting significant pressure on supply, particularly renewable energy. Data centers require a great deal of it. Investors should not hesitate to build data centers in Indonesia,” Bahlil said at Electricity Connect 2026 in Partnership with Enlit Asia at ICE BSD on Tuesday (September 22, 2026).
Bahlil pointed to Indonesia’s geography, with more than 17,000 islands offering substantial renewable energy potential.
These resources include solar, geothermal, wind, and large-scale hydropower.
He also said access to green electricity is becoming an essential requirement for global data center operators as they pursue environmental sustainability commitments.
The Indonesian government, Bahlil added, remains committed to achieving net-zero emissions between 2050 and 2060.
This commitment is reflected in the 2025–2034 Electricity Supply Business Plan (RUPTL), which targets an additional 69.5 GW of generation capacity, with 70% allocated to renewable energy.
The government is also accelerating a 100 GW solar power development program targeted for completion within three years.
“This is not merely a theme; it has been turned into a concrete program,” Bahlil said.
Bahlil subsequently urged prospective data center investors not to miss the opportunity to expand their operations in Indonesia.
“If you want to invest, the time is now. This is the right timing. Instead of asking about natural resources, I would ask all of you whether you are serious about investing in Indonesia,” he said.
Strategic Locations for Green Data Centers
Data center development in Indonesia, particularly green data centers powered by renewable energy, is concentrated in several strategic areas. These include the Nongsa Digital Park Special Economic Zone (SEZ) in Batam, the Greater Jakarta corridor such as Cikarang and Karawang, as well as potential geothermal energy development in areas of Java such as Kamojang.
Batam has emerged as one of the most active locations due to its proximity to Singapore and access to local and regional renewable energy resources.
Projects in these areas began developing gradually between 2021 and 2024, with broader acceleration targeted for the 2025–2030 period.
Major global and domestic players, including Singtel, Telkom, and HYPER1, have gradually begun commercializing their data center operations, with ambitions to achieve fully green operational standards during this decade.
Currently, many developers address limitations in direct renewable energy availability through Renewable Energy Certificate (REC) schemes provided by PLN, along with rooftop solar installations.
At the same time, the government and PLN are continuing to strengthen plans for dedicated renewable energy transmission networks to support the projected surge in electricity demand from data centers in the coming years.
Conclusion
Indonesia’s growing data center industry is increasing demand for reliable and clean electricity. Solar power offers a relatively fast renewable energy option, while geothermal, hydropower, and expanded renewable transmission infrastructure can support longer-term green data center development.
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