Jakarta, INTI - PT Pertamina Geothermal Energy Tbk (PGE) is preparing geothermal power as a renewable energy baseload source to meet the growing electricity needs of data centers and the artificial intelligence (AI) ecosystem in Indonesia. Geothermal energy is considered well suited to data center operations because it can provide a stable power supply around the clock.
PGE President Director Ahmad Yani said data centers and AI factories require electricity that is both reliable and clean 24 hours a day. He made the statement in an official PGE release cited on Wednesday, September 9, 2026.
Data Centers Require Reliable and Clean Power
According to Ahmad Yani, data centers have unique electricity requirements because their operations depend on a continuous and uninterrupted power supply. This presents a challenge for intermittent renewable energy sources whose availability depends on weather and other natural conditions.
“Data centers need electricity that is both reliable and green. Geothermal is a clean domestic energy source capable of operating continuously as a baseload, making it highly suitable as the backbone of Indonesia’s green data center ecosystem,” he said.
Geothermal power has baseload characteristics because geothermal plants can operate continuously, making it one of the energy sources PGE is promoting to support the growing electricity requirements of data centers.
PGE Develops Green Data Center in Kamojang
PGE has begun assessing the development of a green data center powered by geothermal energy in the Kamojang Area of West Java. The initiative is being designed as a pilot project and proof of concept to test the business model while assessing the requirements of potential data center users.
The project is also intended to help establish a market for geothermal power in the data center sector. Rather than focusing solely on energy supply, the initiative aims to align data center electricity demand with available geothermal generation capacity.
Four Steps to Support Renewable-Powered Data Centers
PGE identified several measures needed to optimize the development of renewable energy-powered data centers, particularly those using geothermal power.
First, electricity tariff regulations need to be improved to make them more competitive, transparent, and predictable. Second, the use of fiscal incentives and green financing should be expanded.
Third, greater synchronization is needed between Geothermal Working Areas (WKP), the Electricity Supply Business Plan (RUPTL), transmission networks, Power Purchase Agreements (PPAs), and targeted Commercial Operation Dates (COD).
Fourth, development strategies should be aligned with government policies and the national blueprint for data center and geothermal development.
“These strategies need to be aligned with government policies outlined in the national blueprint for data center and geothermal development,” Ahmad Yani said.
PGE Advances Its Beyond Electricity Strategy
The development of green data center electrification forms part of PGE’s broader Beyond Electricity strategy. The initiative goes beyond electricity generation by expanding the utilization of geothermal resources for various applications.
According to PGE, the strategy includes electrification for green hydrogen, direct use of geothermal steam, as well as technology and laboratory services.
These applications are intended to create new demand for geothermal energy while increasing the utilization of Indonesia’s geothermal potential that remains untapped.
PGE Targets 1.8 GW of Geothermal Capacity by 2034
In terms of capacity, PGE is targeting gradual growth to approximately 1 GW by 2028 and around 1.8 GW by 2034. The expansion will be supported by a resource portfolio of approximately 3 GW.
PGE said the capacity expansion will be driven by a clear and measurable project pipeline. The initiative forms part of the company’s efforts to increase geothermal utilization for various energy needs, including data centers.
The geothermal expansion is also aligned with the government’s energy self-sufficiency agenda, including the allocation of 5.2 GW of geothermal capacity in the national RUPTL.
Indonesia Pushes Geothermal Development
Geothermal development is also linked to Indonesia’s ambition to become the world’s largest geothermal producer by 2030.
“This year also marks 100 years of Indonesia’s geothermal journey. This is a once-in-a-lifetime momentum that we must make the most of to accelerate capacity development and realize Indonesia’s ambition of becoming the world’s largest geothermal producer,” Ahmad Yani said.
Meanwhile, Indonesia’s data center demand continues to grow alongside the country’s digital transformation. Data presented by the Ministry of Communication and Digital Affairs (Komdigi) and the Indonesian Internet Service Providers Association (APJII), as cited by PGE, indicates that Indonesia has 235.26 million internet users and 185 data center facilities.
The number of data center facilities is expected to continue increasing through 2029–2030. This growth will create additional demand for electricity sources capable of providing stable power while meeting the sector’s increasing need for cleaner energy.
With these characteristics, PGE sees geothermal power as a potential solution for supporting data center electricity demand and the development of Indonesia’s AI ecosystem through expanded generation capacity and new energy utilization models.
Conclusion
As Indonesia’s data center and AI sectors continue to expand, the demand for reliable and cleaner electricity is becoming increasingly critical. Geothermal power offers a strong solution as a stable baseload renewable energy source that can operate around the clock.
Through its green data center initiative in Kamojang and its long-term capacity expansion plans, PGE aims to position geothermal energy as an important foundation for Indonesia’s growing digital infrastructure. The integration of geothermal power with data center development could support both the country’s AI ambitions and its broader transition toward a more sustainable energy future.
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