AHY Sets Conditions for AI Data Centre Development

JAKARTA — Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) has called for data centres to be developed in a way that protects the environmental balance.

“The principle is that we support data-centre development without—I repeat, without—harming, let alone disrupting, the environmental balance in the area. Our people also have the right to live in peace, comfort and good health, without their basic needs being affected. I believe that is the principle,” AHY said in Jakarta on Monday (12 October 2026).

He said the development of data centres was unavoidable: as the digital economy expands, including e-commerce and other activities, demand for data centres in various regions will continue to grow.

Data centres require substantial energy, including electricity, as well as large quantities of clean water, he said, so their needs must be carefully assessed.

“I leave it to the parties with the authority to determine whether a particular data centre complies with the established standards and requirements, including those concerning its environmental impact,” AHY said.

He added that data-centre development must also be incorporated into regional spatial planning by the central and regional governments. In industrial areas, it should form part of an integrated ecosystem in which the different components support one another.

Demand is growing, AHY said, and Indonesia has the opportunity not only to provide data centres for domestic needs but also to become a hub for Southeast Asia. Some of these facilities, he said, could be located in industrial areas.