The Coordinating Ministry for the Economy reveals that there are six new investors lining up to invest in the construction of a data center in Indonesia located in the Nongsa Digital Park, Special Economic Zone (SEZ), Riau Islands province.
Susiwijono Moegiarso, Secretary for the Coordinating Ministry for the Economy, said that the investors came from developed countries such as China, Japan, and the United States. However, it is still unknown how much investment is offered.
“So, this data center right now is very massive, because several years earlier Singapore had a moratorium because of electricity needs, and its water is very great,” Susiwijono said on Thursday, July 18, 2024.
Until now, there are about 10 data centers that are constructed in KEK Nongsa Digital Park. About 9 of them are under construction, and one other is in the commitment phase.
Susiwijono highlights that the construction of data centers right now is prevalent in many other countries. On the other side, the companies developing the construction need land, electricity source, and water to support the construction of digital data storage. She explains that Indonesia has become the main target from major countries such as China, and The United States.
He said further that in order to be able to construct even more data centers, Nongsa Digital Park needs land, electricity supply, and large amounts of water. Currently, the government is now focusing on land expansion to help support the development of the data center investment.
There is still a need for 20-30 hectares of land to accommodate 16 data centers in Batam. Right now, Nongsa Park only provides a ready to use land of 5 hectares.
Peters Vincen, the Director PT Taman Resor Internet (as the manager of KEK Nongsa considers that Batam is chosen as the location of National Data Centers number two because of several strategic reasons. He remarks several reasons that Batam has a safe geography, first it is not part of the ring of fire, secondly it is located 2-3 kilometers from Tanjung Bemban the meeting point of international undersea cable that connects Indonesia, Malaysia, Singapore, Hong Kong, and West Coast of the United States.
The area is specifically designated as a business area in the digital economy, technology development, research, education, creative industry; and tourism. Its strategic location, especially for international connections, makes Nongsa Special Economic Zone a destination for domestic and international technology companies looking to invest and grow in Batam, Indonesia.
