Nvidia weighs $4.5bn AI data-center push in Indonesia
A proposed investment in Batam could expand Indonesia's AI capacity, but analysts warn of the strain data centers place on water and power
JAKARTA, Indonesia (MNTV) – Nvidia is exploring a $4.5 billion investment to build data-center infrastructure in Batam, Indonesia, and expand the country’s artificial intelligence capacity, the Indonesia Business Post reported.
Coordinating Economic Affairs Minister Airlangga Hartarto said the government was prioritizing the digital economy to help reach a 6% growth target in 2027.
Indonesia currently has 600-700 megawatts of operational data-center capacity, with a further 1.3 gigawatts in the pipeline, representing an estimated $15-20 billion in potential investment.
Such projects, he said, require ample land, reliable electricity and adequate water.
Those requirements have drawn scrutiny. Timothy Wong, head of research at DBS Group, said Indonesia needed to rethink its approach given how much electricity and water the facilities consume.
“Data centers are very intensive users of electricity and water, and the Indonesian government actually needs these resources for its population,” he said.
A DBS colleague, Amit Sinha, said AI projects must plan for power, cooling, water and community impact, pointing to options such as renewable energy, closed-loop liquid cooling and recycled water.
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