Batam Targeted as AI Data Centre Hub, Investment Reaches Rp 360 Trillion

Batam is increasingly being eyed as a centre for artificial intelligence (AI) data centre development in Southeast Asia. The government has revealed that the value of investment currently being processed for data centre construction in the area has reached US$15 billion to US$20 billion, equivalent to Rp270 trillion to Rp360 trillion. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that this investment is part of a wave of data centre industry expansion, which is growing rapidly in line with the increasing global demand for AI computing. “Currently in Batam, the investment in the pipeline is around US$15-20 billion,” Airlangga said at the Kadin Indonesia Monthly Economic Diplomatic Breakfast event themed ‘Beyond Uncertainty: Building Indonesia’s Next Economy’, quoted on Monday (13/7/2026). According to Airlangga, Batam is a strategic location for data centre development due to its geographical proximity to Singapore, land availability, and digital connectivity infrastructure support that the government continues to strengthen. Indonesia currently has 182 data centres, with Jakarta hosting the largest number at 94 facilities. Meanwhile, Batam already has 16 data centres and is projected to become one of the new national digital industry growth centres. The government is also strengthening international connectivity through the construction of submarine fibre optic cable networks. One such project is an additional fibre optic cable landing point connecting Batam with Singapore to support high-capacity data traffic needs. Airlangga assessed that the influx of data centre investment not only increases national digital infrastructure capacity but also creates a multiplier effect on the economy. The development of AI data centres requires significant investment in the energy, telecommunications, and construction sectors, as well as human resource development. Several global technology companies have shown interest in developing data centre projects in Indonesia. Among them is Firmus Technologies from Australia, which is partnering with Nvidia, along with other major global tech companies preparing to expand their data centre facilities in Batam and Karawang. Beyond attracting investment, the government is also pushing for the development of digital talent to support the industry. Through cooperation with Arm Ltd, Nvidia, and Danantara, the government is targeting the training and absorption of approximately 15,000 Indonesian engineers into the semiconductor and AI ecosystem. Airlangga stressed that Indonesia has a significant opportunity to become a major player in the regional AI industry. Based on data from KORIKA, Indonesia is the fourth largest potential AI market in Asia after China, India, and Japan, with a market value reaching approximately US$70 billion.