Jakarta, INTI - Investment interest in Indonesia’s digital infrastructure sector continues to grow. The Ministry of Investment and Downstreaming and the Indonesia Investment Coordinating Board (BKPM) has recorded interest from nine major prospective investors planning to develop data centers in Indonesia, with combined electricity requirements estimated at 2.7 gigawatts (GW).
Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment/BKPM, said the government is currently assisting some of these prospective investors, while others remain under monitoring and engagement as authorities work to turn their investment interest into concrete projects.
However, BKPM has not yet disclosed the investors’ identities or the estimated investment value of the nine proposed projects.
“Our records show nine prospective data center investments. We are facilitating some of them, while others are being monitored and approached to encourage their investment plans. The combined capacity is substantial, at around 2.7 gigawatts (GW),” Ichwan told Kontan.co.id on Monday evening, October 26, 2026.
Ichwan explained that electricity requirements vary across data center facilities. Although some projects could involve substantial capacity, most are expected to require power in the hundreds of megawatts (MW).
“The total is 2.7 GW, but projects requiring up to 1,000 MW are still relatively rare. Most facilities are expected to need hundreds of megawatts,” he said.
The substantial electricity demand highlights the need for the government to anticipate potential energy supply constraints that could hinder planned data center investments.
Electricity Supply Emerges as a Key Investment Consideration
Regarding a proposal by Indonesia’s sovereign wealth management agency, Daya Anagata Nusantara (Danantara), for large-scale data center investors with capacities exceeding 500 MW to secure their own energy supplies, Ichwan said the proposal could help address potential surges in electricity demand.
According to him, independent power generation could be an option if the supply capacity of state-owned electricity company PT PLN (Persero) is insufficient to meet data center operational requirements.
“I suspect Danantara raised this issue because, globally, we understand that data centers have exceptionally high electricity requirements,” he explained.
Ichwan added that strong investment interest in data centers must be matched by adequate electricity infrastructure. Without sufficient energy supply planning, these investment opportunities could fail to materialize.
“Given the considerable interest in establishing data centers in Indonesia, we need to anticipate high electricity demand. We must ensure that these investments do not fall through because supply limitations cannot accommodate the substantial increase in demand,” he said.
Regulations on Independent Power Supply Remain Under Discussion
Despite the growing interest, arrangements requiring data center investors to provide their own electricity have not yet entered technical discussions between the Ministry of Investment and Danantara. Ichwan noted that no specific regulatory draft governing the mechanism has been prepared so far.
Moving forward, implementation would require coordination among ministries and government agencies to develop policies that accommodate the data center industry's energy requirements.
Ichwan emphasized that the government needs to establish flexible electricity supply options to ensure investment projects can proceed. These could include independent power generation by data center operators, electricity supplied through industrial estates, or power provided by PLN.
“The key principle is to ensure that when investment interest comes in, we have policies that provide workable solutions for electricity supply, whether through independent generation by data centers, industrial estates, or PLN,” he concluded.
As Indonesia attracts growing interest from data center investors, ensuring reliable electricity supplies and establishing clear regulatory frameworks will be crucial to converting investment commitments into operational digital infrastructure.
Conclusion
Indonesia is attracting growing interest in data center investments, with nine prospective investors requiring an estimated combined electricity capacity of 2.7 GW. However, reliable power supply and clear regulatory frameworks remain essential to realizing these projects. Strengthening coordination between the government, PLN, Danantara, and private investors will be crucial to supporting Indonesia’s digital infrastructure expansion and long-term digital economy growth.
Read more: Indonesia’s Data Center Demand Outpaces Available Power Grid Capacity