Investors eye 1.3 GW data center expansion in Indonesia

Jakarta (ANTARA) - A number of global investors have expressed their strong interest in constructing data centers in Indonesia with a combined capacity of 1.3 GW, Coordinating Minister for Economic Affairs Airlangga Hartarto revealed here on Friday (July 10).

Currently, the operational data center capacity in Indonesia stands at approximately 580 MW. According to the minister, the additional investment pipeline for the expansion projects is estimated to reach between US$15-20 billion.

He stated US technology giant Nvidia is among the prospective investors looking to enter the market by collaborating with partners from Australia.

"Then there is direct investment from Telkom itself, while in Karawang, almost all Big Tech companies will develop and expand their data centers. It is because data centers are currently the absolute key to artificial intelligence (AI), which relies heavily on quantum computing," Hartarto explained.

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In supporting the rapid growth of digital infrastructure sector, Hartarto emphasised the government is aggressively preparing human resource (HR) development schemes.

Indonesian government has forged a strategic partnership with British semiconductor company Arm Ltd. to strengthen the upstream sector of the national digital industry. Through the collaboration, Indonesia aims to integrate around 15,000 local engineers into the global Arm ecosystem.

"So, we have a policy of moving downstream in the mineral sector, but in the digital sector we are moving upstream. By moving the upstream, we will eventually move back downstream again. But the key to all of this is human resources," he said.

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Translator: Bayu Saputra, Yashinta Difa

Editor: Fransiska Ninditya

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