Jakarta, INTI - As artificial intelligence (AI) becomes increasingly power-intensive, Indonesia has a significant energy resource that has long been recognized for its potential but remains underutilized: geothermal energy.
PT Pertamina Geothermal Energy Tbk (PGEO) sees the growing electricity needs of data centers and the broader AI ecosystem as a new opportunity to expand geothermal utilization. The company believes data centers’ requirement for reliable, 24-hour electricity aligns well with geothermal power’s ability to provide continuous baseload generation.
PGEO President Director Ahmad Yani said the electricity requirements of data centers and AI factories cannot be met simply by increasing available power. These industries require a stable supply around the clock while also seeking to reduce their carbon footprint.
“Data centers need electricity that is both reliable and green. Geothermal is a clean domestic energy source capable of operating continuously as baseload power, making it highly suitable as the backbone of Indonesia’s green data center ecosystem,” Ahmad Yani said during a discussion titled Building Indonesia’s AI Factory Hub at the 12th Indonesia EBTKE ConEx 2026 in Jakarta, as quoted from PGEO’s information disclosure on Tuesday, September 8, 2026.
The opportunity comes as Indonesia enters a new phase of digital economy expansion. According to data from the Ministry of Communication and Digital Affairs and the Indonesian Internet Service Providers Association (APJII), Indonesia has approximately 235.26 million internet users. Meanwhile, the country currently has around 185 data center facilities, with additional capacity expected to come online through 2029 and 2030.
For PGEO, this growth represents more than an opportunity for technology companies. It also creates a new market for power producers capable of delivering consistent electricity while meeting increasingly important sustainability requirements.
PGEO has already moved beyond discussion and begun studying the development of a geothermal-powered green data center in the Kamojang area of West Java.
The project is being developed as both a pilot project and proof of concept to test the business model, assess potential customer requirements, and evaluate market readiness.
The initiative forms part of PGEO’s Beyond Electricity strategy. Under this approach, geothermal energy is no longer viewed solely as a source of electricity to be supplied to the grid, but also as an energy resource that can support new forms of direct utilization and create additional demand.
Beyond green data centers, the strategy includes green hydrogen electrification, direct geothermal steam utilization, and technology and laboratory services.
However, developing geothermal-powered green data centers requires more than access to an energy resource. Ahmad Yani said several regulatory and infrastructure issues must also be addressed.
First, electricity tariffs need to become more competitive, transparent, and predictable. Second, fiscal incentives and green financing need to be expanded. Third, greater synchronization is required between geothermal working areas, the Electricity Supply Business Plan (RUPTL), transmission networks, power purchase agreements (PPAs), and commercial operation date targets.
“Fourth, the strategy needs to be aligned with government policies outlined in the national data center and geothermal development blueprints,” Ahmad Yani said.
In other words, geothermal may be capable of providing 24-hour electricity, but without synchronized tariffs, grid infrastructure, power contracts, and regulations, green data center projects could remain attractive concepts that are difficult to implement.
PGEO Targets 1.8 GW Capacity by 2034
On the capacity front, PGEO is targeting gradual growth to approximately 1 GW by 2028 and 1.8 GW by 2034. The expansion will be supported by a resource portfolio of around 3 GW and a measured project pipeline, according to the company.
The planned capacity expansion is also aligned with the government’s efforts to strengthen national energy self-sufficiency. Indonesia’s Electricity Supply Business Plan includes an allocation of 5.2 GW for geothermal development.
PGEO views this environment as an opportunity to elevate geothermal energy beyond its role as an alternative electricity source and position it as one of the foundations of clean energy for future industries.
The year 2026 also marks the 100th anniversary of Indonesia’s geothermal journey. For Ahmad Yani, the milestone should be more than a ceremonial occasion.
“This is a milestone that will not come twice, so we must make the most of it to accelerate capacity development and realize Indonesia’s ambition of becoming the world’s largest geothermal producer,” he said.
At the 12th Indonesia EBTKE ConEx 2026, PGE also received four 2026 New, Renewable Energy and Energy Conservation (EBTKE) Awards in the geothermal category.
In the Application of Geothermal Technology for Direct Utilization category, PGE’s Ulubelu Area won second place for its Geothermal Greenhouse, while the Kamojang Area received third place for its Geothermal Drytube initiative.
Two additional awards recognized green job creation and local human resource development through direct geothermal utilization. PGE’s Kamojang Area won first place for Geothermal Dryhouse, while PGE’s Lahendong Area won second place for Katrili Booster Fertilizer.
According to Ahmad Yani, the awards encourage the company to continue expanding geothermal applications beyond electricity generation.
“These awards demonstrate that geothermal success should not be measured solely by the megawatts generated, but also by the economic benefits and employment opportunities created for communities around our operational areas,” Ahmad Yani said.
Conclusion
PGEO is exploring geothermal energy as a potential clean and reliable power source for Indonesia’s growing data center and AI ecosystem. With its 24/7 baseload capability, geothermal could support the development of green data centers, although regulatory, tariff, grid, and infrastructure alignment remain important factors.
Read more: Indonesia’s Data Centers Offer Cost Advantages, but Power Supply Is a Hurdle