Jakarta, INTI - Digital business has emerged as one of the strategic sectors attracting interest from United States (US) companies operating in Indonesia. The US-Asean Business Council (USABC) has identified data center development as a promising business opportunity within the country's digital economy.

USABC President and CEO Brian McFeeters said companies specializing in computing technologies and artificial intelligence (AI) have significant opportunities to expand into Indonesia's data center market.

"This [data center development] will create substantial opportunities for companies involved in computing technologies as well as artificial intelligence (AI) technologies," Brian said during the Unlocking 8% Growth: Eight Recommendations for Indonesia’s Economic Development event at Park Hyatt Jakarta, Central Jakarta, on Thursday, October 30, 2026.

He noted that several major US technology companies have already committed billions of dollars in investments toward developing data center facilities in Indonesia, with some reportedly considering further investment increases.

According to USABC's report, White Paper: Eight Recommendations for Indonesia’s 8% Economic Growth, AI is projected to contribute US$366 billion to Indonesia's economy by 2030.

Bhredipta Socarana, USABC's Country Representative for Indonesia, said US companies could make substantial investments in the country if policies and regulations were implemented consistently. This would require providing businesses with regulatory certainty, ensuring government policies reflect actual industry conditions, and strengthening cooperation among the government, communities, and private sector.

Bhredipta added that several data center companies are already investing in Indonesia, including in facilities and infrastructure development.

"We [USABC] believe that these investments [in Indonesia's data center sector] will reach significant values and scale," he said.

In its report, USABC highlighted several regulatory challenges facing Indonesia's digital sector. Under existing financial-sector regulations, obtaining preliminary approval for overseas data storage can take approximately three months.

USABC members have also reported limited opportunities to participate fully in consultations on AI-related regulations, including the national AI roadmap, ethics, copyright, cybersecurity, and Indonesia's One Data Policy.

To address these challenges, USABC recommends that the Indonesian government strengthen the expertise of officials responsible for policymaking, licensing, procurement, supervision, and auditing, particularly in understanding digital supply chains and their differences from conventional supply chains. The council also encourages the government to build institutional capabilities through specialized recruitment, continuous training, and stronger collaboration with industry players and universities.

Furthermore, USABC recommends establishing clearer distinctions between stored data, data in transit, and momentary processing. This approach would allow low-risk data processing activities to proceed through notification rather than requiring prior approval. The council also emphasizes the importance of aligning institutional mandates, budgets, procurement processes, and audits with lifecycle costs, while publishing cloud, AI, and data requirements on INAPROC before procurement tenders are opened. In addition, establishing interoperability standards would help ensure that international and domestic systems can work together across payment services, cloud infrastructure, and data transfers.

USABC believes that increased investment in the digital sector would generate benefits across multiple segments of society. For the public, improved digital infrastructure could provide safer access to banking, digital, and public services, accelerate the introduction of new payment features, and enable more people to participate in the digital economy.

For businesses and workers, technology companies and micro, small, and medium enterprises (MSMEs) could expand into larger markets. Banks, manufacturers, and logistics companies could also adopt AI, cloud computing, and cybersecurity technologies to improve workforce capabilities.

For the government, a more dynamic digital sector could increase tax revenues, create skilled employment opportunities, and improve the efficiency of public spending on digital systems. These developments would also support the digital transformation agenda outlined in Indonesia's National Medium-Term Development Plan (RPJMN).

Growing Backlash Against Data Center Construction in the US

While US companies are increasingly expanding their data center investments in Indonesia, the construction of new data center facilities in the United States is facing growing opposition from local communities.

According to Data Center Map, a company that tracks data center locations, capacities, and market information worldwide, there are currently 18,110 data center facilities across 116 countries, operated by 4,181 companies.

The US accounts for nearly half of the world's total data center facilities, with 8,810 facilities, representing approximately 48.7% of the global total.

Data centers are generally built near urban areas because of easier access to high-voltage electricity networks and water resources required for cooling systems. However, as demand for computing capacity continues to grow, more facilities are also being developed in rural areas.

A study conducted by The Economist and YouGov found that approximately 51% of US residents consider the construction of new data centers to be bad for the country. Meanwhile, 20% view the development positively, while another 17% consider it neither good nor bad.

Opposition is even stronger at the community level. Around 63% of US residents oppose new data center developments in their local communities, compared with only 19% who support such projects.

One of the main concerns driving public opposition is the potential impact of data centers on electricity consumption and utility costs. Approximately 60% of US residents believe that building new data centers in their communities would increase electricity bills. Meanwhile, 14% believe these developments would have no impact on electricity costs, while only 4% expect electricity bills to decrease.

According to the BBC, approximately 16 US states have proposed legislation to prohibit or temporarily suspend the construction of new data centers. The issue could also become a major topic during the US midterm elections scheduled for November 3, 2026.

Conclusion 

Indonesia’s growing data center market presents significant opportunities for US technology companies, particularly as demand for AI and digital infrastructure continues to rise. However, attracting long-term investment will depend on regulatory certainty, stronger digital capabilities, and effective collaboration between the government and private sector. At the same time, growing opposition to data center construction in the US highlights the importance of balancing digital expansion with energy sustainability, infrastructure readiness, and community interests.

Read more: South Korean Company Targets Asia-Pacific Expansion Amid Rising Demand for AI Infrastructure