Amidst PLN Blackouts, Concerns Rise Over Indonesia's Data Centre Power Needs
Recent power outages across various regions in Indonesia serve as a stark reminder that electricity remains one of the most vital pieces of infrastructure in modern life. For the general public, a blackout might simply mean lights going out, internet disconnection, or disrupted daily activities. However, for the digital world, particularly the data centre industry, electricity is more than just a necessity; it is the ‘oxygen’ that determines whether an entire system continues to operate or ceases within seconds.
Amid the rapid development of Artificial Intelligence (AI), cloud computing, and the digital economy, a question is increasingly being discussed globally: Will Indonesia’s electricity supply be able to meet the ever-increasing demands of data centres? This question is not an exaggeration. In recent years, Indonesia has successfully attracted significant data centre investment from both local and global companies. Jakarta, Bekasi, Karawang, Batam, and several new industrial zones are beginning to evolve into national digital infrastructure hubs. This growth is projected to continue alongside the expansion of AI and data storage needs, with Indonesia’s data centre capacity expected to grow by several gigawatts in the coming years.
The challenge lies in the fact that data centres are extremely energy-intensive industries. As AI develops, the required electricity consumption increases. Globally, AI is expected to be one of the largest contributors to the rise in data centre energy consumption in the near future. Unlike conventional factories that can temporarily halt operations during a disruption, data centres must operate 24 hours a day without interruption. Even a minor power disturbance can result in massive losses.
Consequently, almost all data centre operators implement multi-layered systems, ranging from Uninterruptible Power Supplies (UPS) and backup generators to dual power lines. However, regardless of how robust an operator’s backup systems are, the primary foundation remains the reliability of the national electricity grid. This is where concerns are emerging. Recent blackout incidents in Jakarta and other regions demonstrate that the national electrical system still faces challenges that must be strengthened.
Fortunately, PLN (the state electricity company) appears to recognise that the wave of data centre and AI investment will significantly increase energy demand. Recently, PLN prepared an additional power supply of up to 1.2 GW to support the expansion of AI-based data centres in Indonesia. Furthermore, in its latest Electricity Supply Business Plan (RUPTL), PLN plans significant increases in generation capacity, including renewable energy and energy storage systems.
However, the true challenge may not merely be about the quantity of electricity, but rather its quality and reliability. For the data centre industry, frequent power outages are just as dangerous as a shortage of power. In many countries, the competition for AI investment is no longer just about regulation or taxation; the competition is shifting towards a simple question: Who can provide the most reliable electricity?
The United States, Singapore, Malaysia, and Middle Eastern nations are all racing to build energy infrastructure to support AI growth. Some countries are even revisiting the use of Small Modular Reactors (SMR) to meet future data centre energy needs. Indonesia possesses strong fundamentals, with large energy reserves and abundant renewable energy potential. However, if the growth of data centres, AI, electric vehicles, and digital industries outpaces the development of energy infrastructure, the pressure on the national electricity system will intensify. This is compounded by climate change factors that may affect future energy system resilience.
Ironically, as Indonesia strives to become the largest data centre hub in Southeast Asia, the fundamental question returns to something very simple: Is our electricity sufficient? Ultimately, there is no AI without data centres, no data centres without electricity, and no digital economy without a robust energy system. A few years ago, the frequent question was, ‘Does Indonesia have enough data centres?’ Now, the question has shifted to: ‘Does Indonesia have enough electricity to support its digital future?’