Jakarta, INTI - Dian Agustina, a researcher at Neptun (NP Intelligence), has highlighted the growing impact of data center expansion on national electricity and water resources.
Referring to a report from the International Energy Agency (IEA), Dian noted that global data centers consumed around 415 terawatt-hours (TWh) of electricity in 2024, representing approximately 1.5% of global electricity consumption.
“This figure has been growing by around 12% annually since 2017, four times faster than the growth rate of global electricity demand as a whole. By 2025, global data center electricity consumption is expected to reach 448 TWh. If treated as a country, data centers would rank as the 11th largest electricity consumer in the world,” Dian said on Monday, June 15, 2026.
Beyond electricity, Dian emphasized that data centers also require significant water resources. This is due to the continuous operation of AI systems, cloud computing platforms, streaming services, digital transactions, and chatbot interactions.
“Large-scale infrastructure like this requires substantial electricity to operate. It also consumes vast amounts of water to cool servers that run nonstop. And that is only for a single facility,” she explained.
Indonesia Emerging as a Data Center Investment Hotspot
Dian acknowledged that Indonesia is increasingly becoming an attractive destination for global data center investment. Major technology companies such as Google, Microsoft, and Amazon have announced plans to develop data centers in the country, a move welcomed by the government.
“Trillions of rupiah in investment reflect strong global confidence in Indonesia’s digital economy,” she said.
She added that as of April 2026, Indonesia ranks among the top 15 countries globally in terms of the number of data centers, with approximately 190 facilities across 32 cities.
The largest concentrations are in Jakarta, Cikarang, Cibitung, followed by Batam, Surabaya, and several other regions. The economic impact is also significant, with the sector generating USD 2.81 billion in foreign exchange earnings last year, projected to reach USD 6.08 billion by 2031.
Local Environmental Pressure and Sustainability Risks
However, Dian warned that rapid expansion also brings serious environmental challenges.
In Virginia, United States, widely considered a global data center hub, residents have begun pushing back due to worsening water and electricity shortages. In 2024, the region experienced prolonged drought conditions.
Utility data showed that data centers in Virginia consumed around 899 million gallons of drinking water in 2023, a 250% increase compared to previous years.
Dian noted that similar warning signs are beginning to emerge in Indonesia. In Batam, for example, planned development of nine data center facilities in the Nongsa Digital Park area is estimated to require around 29 million liters of water per day.
“Overall, existing and planned data centers in Batam are projected to consume around 8% of the city’s total water supply,” she explained.
Batam’s maximum clean water supply capacity is estimated at only around 3,000 liters per second, with about 90% already allocated to industrial and household needs.
Dian warned that a single large-scale data center can consume hundreds of thousands of liters of water daily for cooling systems.
“If not carefully managed, Batam could face a water deficit within the next decade,” she said.
Meanwhile, in Bekasi and Cikarang, land subsidence of 3.8 to 4.6 cm per year has been recorded due to excessive groundwater extraction.
“Ironically, much of the water used for server cooling comes from deep groundwater reserves that should be preserved as a strategic resource for human consumption during droughts,” she concluded.
Conclusion
The rapid expansion of data centers highlights both Indonesia’s growing role in the global digital economy and the rising pressure on critical resources such as electricity and water. While the sector attracts significant investment and supports digital transformation, careful regulation and sustainable infrastructure planning are essential to prevent long-term environmental risks.
Read more: China Operates a Wind-Powered Underwater Data Center in Shanghai