Jakarta, INTI - Danantara Indonesia is urging large-scale data center projects, particularly those supporting artificial intelligence (AI) and requiring substantial electricity, to develop their own energy sources to avoid putting pressure on Indonesia’s existing power supply.
Stefanus Ade Hadiwidjaja, Managing Director of Danantara Investment Management, emphasized that energy requirements should be considered from the earliest planning stages, especially for projects with capacities exceeding 500 megawatts (MW).
He introduced the concept of “Bring Your Own Energy” (BYOE), encouraging large data center operators to provide dedicated energy supplies rather than compete with industries and households for available electricity.
According to Stefanus, if a data center relies on electricity from state-owned utility PLN, the applicable tariffs should also ensure that PLN can maintain a commercially viable business. Danantara aims to ensure that major digital infrastructure investments remain financially sustainable while serving Indonesia’s broader economic interests.
AI and Data Centers Emerge as Investment Opportunities in Indonesia
Danantara sees AI and data center development as promising investment opportunities in Indonesia. Several large-scale projects could be announced or reach agreement-signing stages during The New Asia Forum, scheduled for December 3–4, 2026, in Bali.
The forum is expected to connect investors with investment opportunities across Asia while attracting additional capital to Indonesia, particularly for digital infrastructure that requires substantial energy supplies and supporting facilities.
Danantara’s approach highlights the importance of balancing digital infrastructure expansion with national energy security. By requiring large projects to plan their energy needs early, the organization aims to support investment growth without compromising electricity availability for existing industries and communities.
Danantara Calls for More Efficient Water Management in Data Centers
Beyond electricity, Danantara is also emphasizing the importance of responsible water management in data center operations.
Stefanus encouraged operators to optimize water consumption through technologies such as closed-loop water systems, water treatment facilities, and desalination. These solutions can enable water reuse, reduce demand for freshwater, and support more sustainable facility operations.
He stressed that investments should be implemented responsibly, taking into account their effects on communities and the environment.
Efficient water management is particularly important as data centers expand, since cooling systems and other operational processes can require substantial quantities of water.
Sustainable Digital Infrastructure to Support Indonesia’s Economic Growth
Danantara believes data center investments should generate broader economic benefits for Indonesia, including job creation and stronger national digital infrastructure.
Consequently, investment decisions should consider more than project size or financial value. The availability of supporting infrastructure, energy and water requirements, commercial feasibility, and potential economic contributions must also be evaluated.
As demand for AI computing capacity continues to grow, Indonesia has an opportunity to attract investment in digital infrastructure while establishing more sustainable development standards.
Ultimately, Danantara’s proposed approach seeks to ensure that large-scale AI and data center projects contribute to Indonesia’s digital transformation without placing unnecessary pressure on the country’s energy resources, water supplies, or surrounding communities.
Conclusion
Danantara Indonesia is encouraging large-scale AI data centers, particularly facilities exceeding 500 MW, to secure dedicated energy supplies and adopt efficient water management systems. The initiative aims to balance growing demand for digital infrastructure with national energy security, environmental sustainability, and economic benefits for Indonesia.
Read more: Government Develops Strategy to Expand AI-Powered Data Centers Across Eastern Indonesia