Jakarta, INTI - President Director of Telkom Indonesia, Dian Siswarini, stated that Batam Island holds strategic importance for the company’s efforts to develop a national data center hub through its subsidiary, NeutraDC Nxera Batam. Batam’s geographical proximity to major financial and technology centers such as Singapore, combined with the presence of 14 submarine cable infrastructures connecting Southeast Asia and its status as a Special Economic Zone, makes the island an ideal location for digital infrastructure investment.
“Supported by favorable policies, strong connectivity, and collaboration between the public and private sectors, this data center project offers broad benefits for the technology industry, digital businesses, local communities, and of course investors seeking opportunities in the rapidly growing digital infrastructure sector,” Dian said during the topping-off ceremony of the Hyperscale Data Center (HDC) NeutraDC-Nxera Batam on Thursday in Batam.
Dian further explained that Batam has attracted numerous investors interested in building hyperscale data centers. One example is the development of NeutraDC Nxera Batam by Telkom’s subsidiary, targeting a total IT load capacity of 18 MW for its first building (BTM-1) located within the Kabil Integrated Industrial Estate (KIIE). In addition, other data center operators are also developing projects in Nongsa Digital Park. Both the industrial zones in Nongsa Digital Park and KIIE have been designated as Special Economic Zones (SEZ), providing fiscal incentives and regulatory support for data center development.
“With these advantages, Batam has the potential to become a digital bridge between Indonesia and the wider Southeast Asian region—an advantage that is highly relevant in the era of cloud computing, big data, and artificial intelligence,” Dian explained.
Multi-Dimensional Benefits
The development of hyperscale data centers in Batam is expected to bring multi-dimensional benefits to Indonesia’s economy. These include accelerating the digital economy and attracting foreign investment through expanded data center capacity to support cloud services, artificial intelligence, the Internet of Things (IoT), and other digital services. The project will also strengthen Indonesia’s digital infrastructure and draw global technology investors to the country.
In addition, the initiative is expected to create employment opportunities and support human resource development. NeutraDC Nxera Batam has already signed cooperation agreements with local educational institutions to develop data center talent. The project also prioritizes renewable energy and environmentally friendly infrastructure by focusing on sustainable power sources and energy-efficient operations, in line with global sustainability goals.
“With significant hyperscale data center capacity, Indonesia will not only act as a user of digital infrastructure but also emerge as a hub for global digital services, strengthening the nation’s data sovereignty. For Batam’s local economy, investments in data center infrastructure will stimulate growth in sectors such as construction, utilities, logistics, technology services, as well as supporting industries like connectivity and workforce development,” Dian added.
CEO of NeutraDC Nxera Batam, Indrama YM Purba, also noted that the hyperscale data center will operate using electricity supplied by Medco Power Indonesia from renewable energy sources. Challenges such as high power demand, cooling water supply, and heat waste management have been anticipated through the preparation of dedicated infrastructure within the industrial zone and the Special Economic Zone.
The construction of a hyperscale data center in Batam represents not only a large-scale infrastructure project but also a crucial component of Indonesia’s digital economic transformation. The initiative is expected to create significant impacts across local, regional, and global ecosystems. For investors, it offers a strategic opportunity to participate in the acceleration of digital growth supported by a prime location, pro-investment policies, large operational scale, and long-term development prospects. For Indonesia, this initiative marks a concrete step toward strengthening data sovereignty and accelerating sustainable digital economic growth.
Conclusion
The development of the AI-powered hyperscale data center in Batam marks a strategic step for Indonesia in strengthening its digital infrastructure, attracting global investment, and positioning the country as a key hub for cloud, AI, and data services in Southeast Asia.
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