Jakarta, INTI - Indonesia’s Minister of Communication and Digital Affairs, Meutya Hafid, has stressed that the development of artificial intelligence (AI) data centers must not disrupt the availability of water and energy needed by communities, particularly for essential public services.
Meutya said the country’s growing demand for computing capacity must be accompanied by infrastructure planning that takes into account the availability of resources in each region.
“Indonesia certainly needs greater computing capacity, which requires data centers. At the same time, however, we must ensure sufficient energy supplies. Energy availability must not be disrupted for other needs, especially public services. Water availability must not be affected either,” Meutya said at the Ministry of Communication and Digital Affairs (Kemkomdigi) office in Jakarta on Wednesday, October 7, 2026.
According to Meutya, the government needs to ensure that data center development is properly measured and planned so that the growth of the digital industry does not come at the expense of people’s basic needs.
Government to Assess Water, Energy, and Connectivity Availability
Meutya explained that AI data center development requires cross-sector coordination before construction permits are granted.
Such coordination is necessary to balance computing infrastructure requirements with a region’s capacity to provide the resources needed to support data center operations.
Kemkomdigi plays a role in mapping national computing requirements, internet users, and areas with adequate connectivity.
In addition to telecommunications infrastructure, the government must also assess the availability of electricity and water supplies in areas being considered for data center development.
“The location must also be carefully determined. We need to know whether there is sufficient water availability, adequate energy supply, and reliable connectivity in the area,” she said.
Meutya emphasized that site selection cannot be based solely on the technology industry’s requirements. It must also take into account local infrastructure conditions and the needs of surrounding communities.
This approach is expected to enable data center development to support technological advancement without disrupting public services or residents’ access to essential resources.
Rising Data Center Investment Raises Capacity Concerns
Meutya said demand for data center development in Indonesia continues to increase alongside the growth of the digital industry and shifting global geopolitical dynamics.
These developments have also encouraged international companies to expand their investments in technology and digital infrastructure in Indonesia.
However, the government believes data center expansion needs to be carefully managed to ensure that available capacity remains aligned with national requirements.
Meutya warned that excessive data center construction could place additional pressure on resources that are also needed for other purposes.
“There needs to be a buffer and safeguards so that we are not flooded with data centers. We must carefully select locations and ensure development matches actual demand because excessive capacity also creates trade-offs,” she said.
According to Meutya, the government needs to balance the economic benefits of data center investment with the water and energy resources required to operate these facilities.
Location selection and capacity planning are therefore becoming key elements of Indonesia’s digital infrastructure development strategy.
Digital Economy Growth Must Go Hand in Hand with Community Needs
Meutya reaffirmed that developing the digital and creative economies remains important for Indonesia as the use of AI technology continues to expand.
Growth in these sectors is creating demand for new data centers to support computing requirements and technology-driven industries.
At the same time, the government must ensure that digital infrastructure development does not reduce public access to essential resources, particularly water and energy.
Meutya identified site selection as one of the key factors that must be considered before data center projects proceed.
“Location selection will be extremely important. Data center development must not disrupt local water or energy needs, and most importantly, it must not interfere with the needs of the community,” she said.
Kemkomdigi is emphasizing the importance of data center planning that balances industry requirements, infrastructure readiness, and the protection of resources needed by communities.
Through this approach, the government aims to support AI development and technology investment in Indonesia while maintaining reliable access to water, energy, and essential public services.
Conclusion
Indonesia is seeking to expand AI data center infrastructure while ensuring that growing computing needs do not put pressure on essential water, energy, and public services. Careful site selection, capacity planning, and cross-sector coordination will be key to achieving sustainable digital infrastructure growth.
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