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Growing AI Adoption Fuels Data Center Demand in Indonesia, Accelerating the Shift Toward Liquid Cooling

9 hours ago | Data Center


Jakarta, INTI - The rapid advancement of Artificial Intelligence (AI) is driving a significant surge in demand for data center infrastructure in Indonesia. As computing density continues to increase, liquid cooling is emerging as a key solution to maintain energy efficiency, operational reliability, and sustainability in the next generation of data centers.

This was highlighted during the Media Masterclass: Liquid Cooling & Next-Gen Data Center Infrastructure hosted by Schneider Electric Indonesia.

Chairman of the Indonesia Data Center Provider Organization (IDPRO), Hendra Suryakusuma, explained that AI has fundamentally transformed power requirements and data center architecture.

“Back in 2012, a single server rack typically required around 3 kilowatts of power. Today, AI workloads can demand up to 120 kilowatts per rack. This year, we expect the emergence of racks consuming 600 kilowatts, and in the future, power requirements may reach as high as 1,000 kilowatts per rack,” he said.

According to Hendra, the dramatic increase in computing density has made traditional air-based cooling systems insufficient. Data center operators need to adopt liquid cooling technologies to maintain GPU performance and prevent thermal throttling in high-density computing environments.

Indonesia’s Data Center Expansion Requires Advanced and Sustainable Infrastructure 

IDPRO projects Indonesia’s total data center capacity to reach approximately 1.6 gigawatts (GW) by the end of 2026. In the longer term, the country’s total IT load is expected to grow from 1,717 megawatts (MW) in 2026 to 4,145 MW by 2031, representing a compound annual growth rate (CAGR) of 19.27%.

This expansion is supported by Indonesia’s massive digital ecosystem, with around 286 million people, 230 million internet users, 180 million social media identities, and 331 million mobile connections recorded in 2025.

Globally, power consumption from AI workloads and supporting infrastructure is estimated to increase from 4.3 GW in 2023 to between 13.5 GW and 18 GW by 2028. AI’s share of total data center power consumption is also expected to rise from 8% to approximately 15–20% during the same period.

Liquid Cooling Innovation Strengthens Indonesia’s Ambition as a Regional AI Hub 

Business Vice President of Data Center Schneider Electric Indonesia, Ellya Cen, stated that the rise of AI requires a new approach to designing and operating data centers.

“AI has brought the data center industry into a new era. Infrastructure that was once measured primarily by space capacity and connectivity must now be prepared for higher power demands, greater heat intensity, and increasingly critical uptime requirements,” she explained.

To address these challenges, Schneider Electric offers liquid cooling solutions designed to support GPU servers and high-density computing environments. The hybrid approach combines liquid cooling for primary heat loads with air cooling for residual heat management.

The company also provides a comprehensive end-to-end data center infrastructure portfolio, including medium and low-voltage systems, UPS, Power Distribution Units (PDU), Battery Energy Storage Systems (BESS), cooling technologies, and digital solutions such as EcoStruxure IT, Building Management Systems (BMS), Electric Power Management Systems (EPMS), and ETAP Digital Twin.

In February 2025, Schneider Electric acquired US-based Motivair, a company that has deployed more than 4 GW of liquid cooling capacity and supplied cooling systems for six of the world’s ten fastest supercomputers, including the top three.

Schneider Electric stated that it has supported cooling capacities exceeding 400 kilowatts per rack since 2018, with its portfolio capable of covering around 90% of end-to-end data center infrastructure requirements. The company also collaborates with NVIDIA to provide reference designs for AI platforms powered by GB200 and GB300 GPUs.

Hendra believes Indonesia has a significant opportunity to become a leading AI and data center hub in Southeast Asia. However, he emphasized that supportive regulations, fiscal incentives, and accelerated renewable energy adoption are essential to ensure the industry remains competitive and sustainable.

“With the right regulatory support and incentives, Indonesia has the potential to become the largest AI and data center hub in the region,” Hendra concluded.

Conclusion

The rapid growth of AI is reshaping the future of data center infrastructure, driving the need for higher power capacity, advanced cooling technologies, and more sustainable operations. With rising digital demand, the adoption of liquid cooling, supportive regulations, and renewable energy initiatives will play a crucial role in strengthening Indonesia’s ambition to become a leading AI and data center hub in Southeast Asia.

Read more: Surging Demand Fills Data Center Capacity Ahead of Operations, Telkom Expands NeutraDC Facility in Batam

Indonesia Technology & Innovation
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