Jakarta, INTI - The Indonesian government has revealed that global investor interest in developing artificial intelligence (AI) data centers in the country continues to grow. The surge in investment is expected to significantly increase Indonesia’s national data center capacity from approximately 580 megawatts (MW) to 1.3 gigawatts (GW) in the coming years.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the projected capacity expansion comes from various data center projects currently entering the development pipeline.
"We are seeing strong growth in data center demand. From the current 580 MW capacity, the pipeline is expected to add up to 1.3 GW," Airlangga said in Jakarta on Friday, July 10, 2026.
Data Center Expansion Opens Opportunities for 15,000 Engineers
According to Airlangga, the increasing investment in the data center sector will drive demand for highly skilled technology professionals, creating new career opportunities for Indonesian workers.
He highlighted that semiconductor technology company Arm Ltd, in collaboration with Nvidia and Danantara, has committed to training and recruiting around 15,000 Indonesian engineers to support the development of the semiconductor, chip, and AI-based data center ecosystem.
"The key factor is human resources. Following the President’s direction, the target is for 15,000 Indonesian engineers and workers to become part of the Arm ecosystem," he said.
Data Center Investment Estimated to Reach Tens of Billions of Dollars
Airlangga estimated that expanding Indonesia’s data center capacity would require investment worth tens of billions of US dollars.
He explained that the installed data center capacity of 580 MW requires an estimated investment of around US$1 million per MW. Meanwhile, additional projects with a capacity of approximately 1.3 GW, including data center developments in Batam, are projected to attract investment between US$15 billion and US$20 billion.
"The investment in Batam alone is estimated at around US$15 billion to US$20 billion and has already entered the pipeline," he stated.
Nvidia, Telkom, and Global Technology Companies Expand Presence
Airlangga noted that several international and domestic companies have expressed interest in developing data center facilities in Indonesia.
Among them are Australia-based Firmus Technologies, which is partnering with Nvidia, and PT Telkom Indonesia, which plans to expand its investment in the data center sector.
Karawang has also emerged as one of the preferred locations for global technology companies (Big Tech) to establish and expand their data center facilities.
"One of them is an Australian company collaborating with Nvidia. Telkom is also expanding its investment, while nearly all major technology companies are planning data center expansion in Karawang," Airlangga added.
Strengthening Digital Infrastructure Through Renewable Energy
To support the rapid expansion of data centers, the Indonesian government is strengthening national digital infrastructure, including renewable energy supply, fiber optic networks, and submarine cable connectivity.
Airlangga stated that the government will inaugurate an additional fiber optic cable landing point connecting Batam and Singapore on July 20. Indonesia also maintains international connectivity routes to the United States through Bitung, North Sulawesi.
He emphasized that digital infrastructure development must go hand in hand with clean energy availability, as data centers require large and reliable electricity supplies.
"The key remains renewable energy. Data center development must be supported by renewable energy to ensure Indonesia’s digital ecosystem can grow sustainably," Airlangga concluded.
Conclusion
Indonesia’s growing data center industry reflects the country’s increasing importance as a regional digital infrastructure hub. With rising global investment, skilled workforce development, and stronger support for renewable energy, the expansion of AI-powered data centers is expected to accelerate Indonesia’s digital transformation while creating new opportunities for technology talent and sustainable innovation.
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