The limited availability of renewable energy is seen as a major obstacle to attracting investors to build green data centers in Indonesia’s industrial zones. 

Didik Prasetiyono, Deputy Chairman for Inter-Institutional Relations at the Indonesian Industrial Estates Association (HKI), said hyperscale green data center developers are increasingly targeting industrial areas. However, insufficient renewable energy supply and inadequate infrastructure − such as access to water for cooling systems − remain key challenges.

“The problem is, green energy isn’t available. Even if it is, the capacity isn’t enough,” Didik said during a public discussion on Wednesday, November 5, 2025.

Meanwhile, Mira Tayyiba, Director General of Government Digital Technology at the Ministry of Communications and Digital Application, noted that global demand for green data centers is rising rapidly.

“Global data center players, especially hyperscale ones, want clean energy. They already have their own roadmaps,” Mira said at the “Advancing Green Data Centers in Indonesia” event in Jakarta.

She cited that sustainable data centers adopt energy efficiency measures and aim to minimize environmental impacts. Key focus areas include the use of renewable energy sources and the management of environmental aspects such as water supply for cooling systems, electronic waste management, and site selection in low-risk disaster areas. However, she added that Indonesia still lacks official guidelines or regulations governing green data center development.

Mada Ayu Habsari, Chairwoman of the Indonesian Solar Energy Association (AESI), echoed similar concerns, saying that the lack of clean energy options limits investor interest. A recent study by a consortium including CSIS, Tenggara Strategics, Prasetiya Mulya University, UMBRA – Strategic Legal Solutions, and AESI found that clean energy shortages persist even in priority locations such as Jakarta and Batam.

Other regions − including the new capital city (IKN), North Sumatra, and North Sulawesi − are also being prioritized for data center development. In MM2100 Industrial Estate, for instance, the installed solar power capacity is only 182 MW, while in Batam, the potential capacity from floating solar panels could reach 1,500 MW.

Despite these limitations, the demand outlook is strong. By 2035, data center electricity demand in Jakarta is projected to triple to 6.82 TWh, while Batam’s demand is expected to increase sevenfold to 2.49 TWh − further underscoring the urgent need to expand renewable energy infrastructure to sustain Indonesia’s green digital transformation.