Indonesia Woos Data Center Investors: 'We Still Have So Many Islands'

September 22, 2026 | 05:08 pm

TEMPO.CO, Jakarta - Indonesia is offering investors the use of its islands to develop data centers, Energy and Mineral Resources Minister Bahlil Lahadalia said on Tuesday.

He pointed to the country’s extensive territory and energy resources as potential advantages for data center development, while also promising support for investors seeking electricity supplies.

“Investors should not hesitate to build data centers in Indonesia. Our territory is the largest in Southeast Asia, and we still have so many islands,” Bahlil said at Electricity Connect 2026 in Tangerang, Banten.

He also said electricity production costs in Indonesia could be more competitive than in other countries, although he did not provide a comparison.

“We will provide facilities and ease for all of you,” Bahlil told the audience at the event.

Electricity Supply for Data Centers

Reliable electricity is a key consideration for data center development because the facilities require large and continuous power supplies.

Bahlil said electricity availability would not be a problem for investors seeking to develop data centers in Indonesia.

“Once they communicate their needs and specify how much electricity capacity they require, PLN will definitely prepare it,” he said, referring to state-owned electricity company PT PLN (Persero).

Indonesia has been seeking to attract more investment in the data center sector as demand for digital infrastructure grows.

The Investment and Downstreaming Ministry, also known as the Investment Coordinating Board (BKPM), previously promoted data center investment opportunities to Chinese investors at the Indonesia-China Partnership Forum in Jakarta in July.

BKPM Deputy for Investment Services Andi Maulana said data centers represented an investment opportunity supported by Indonesia’s digital economy, which he described as one of the fastest-growing in Southeast Asia.

According to a BKPM presentation citing Mordor Intelligence, Indonesia’s data center market was valued at about US$1.44 billion in 2025 and is projected to reach US$1.83 billion in 2026.

The market is projected to reach US$3.48 billion by 2031, representing a compound annual growth rate of 13.71 percent.

Globally, the data center market is projected to grow from US$386.71 billion in 2025 to US$684.39 billion in 2031, according to the same data.

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