Amidst PLN Blackouts, Concerns Rise Over Indonesia's Data Centre Power Needs

Several recent power outages in various parts of Indonesia have served as a stark reminder that electricity remains one of the most vital infrastructures in modern life. For the general public, a blackout may simply mean lights go out, internet connections drop, or daily activities are disrupted. However, for the digital world, particularly the data centre industry, electricity is not just a necessity—it is the ‘oxygen’ that determines whether entire systems can continue operating or grind to a halt within seconds. Amid the rapid development of Artificial Intelligence (AI), cloud computing, and the digital economy, a pressing question is emerging: Is Indonesia’s electricity supply capable of meeting the ever-increasing demands of data centres? This is not an exaggerated concern. In recent years, Indonesia has successfully attracted significant data centre investment from both local and global companies. Areas such as Jakarta, Bekasi, Karawang, Batam, and other new industrial zones are developing into national digital infrastructure hubs. This growth is expected to accelerate with the expansion of AI and data storage needs, with Indonesia’s data centre capacity projected to grow to several gigawatts in the coming years. The problem is that data centres are an extremely energy-intensive industry. Unlike conventional factories that can temporarily halt operations during disruptions, data centres must operate 24 hours a day without interruption. A minor power disturbance can result in massive losses. Consequently, almost all operators build layered systems, including UPS, backup generators, and dual power lines. Yet, no matter how robust an operator’s backup systems are, their primary foundation rests on the reliability of the national electricity grid. This is where concerns arise. Recent blackout incidents, both in Jakarta and other regions, demonstrate that the national electricity system still faces challenges that must be continuously addressed. Fortunately, PLN appears to have recognised that the wave of data centre and AI investment will significantly increase energy demand. The state-owned electricity company recently prepared an additional 1.2 GW of power supply to support AI-based data centre expansion in Indonesia. Furthermore, the latest Electricity Supply Business Plan (RUPTL) outlines plans for substantial additional generation capacity, including renewable energy and energy storage systems. However, the real challenge may not solely be about the quantity of electricity. What is far more critical is its quality and reliability. For the data centre industry, frequent power interruptions are just as dangerous as a power shortage. In many countries, the competition to attract AI investment is no longer just about regulations or taxes. It is shifting to a simple question: Who can provide the most reliable electricity? The United States, Singapore, Malaysia, and Middle Eastern nations are racing to build energy infrastructure to support AI growth. Some countries are even revisiting discussions on Small Modular Reactors (SMRs) to meet future data centre energy needs. Indonesia actually possesses strong fundamentals. Its energy reserves are still substantial, and its renewable energy potential is abundant. However, if the growth of data centres, AI, electric vehicles, and the digital industry outpaces energy infrastructure development, the pressure on the national electricity system will intensify, not to mention the factor of climate change which could affect future energy system resilience. Ironically, as Indonesia races to become the largest data centre hub in Southeast Asia, the fundamental question returns to a very simple premise: 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. The question that was frequently asked a few years ago was, ‘Does Indonesia have enough data centres?’ Now, the question is changing to, ‘Does Indonesia have enough electricity to support its digital future?’