BP Batam: Rapid Data Centre Investment Requires Upstream Supply Preparation
Batam, Riau Islands — The Batam Free Trade Zone Authority (BP Batam) has stated that the projected rapid development of the data centre industry over the next two years must be balanced with the readiness of energy and water supplies from the upstream side.
Fary Djemy Francis, Deputy for Investment at BP Batam, noted that several investments valued at around Rp500 trillion have the potential to enter Batam alongside the expansion of the data centre industry.
“I am conveying that in the next two years, the data centre industry is set to boom. Many investors, totalling approximately Rp50ely 500 trillion, are expected to enter,” Fary said in Batam on Thursday.
According to him, this development must be accompanied by the strengthening of the supporting manufacturing industry for data centres, ensuring that the benefits of investment stem not only from the construction of data centres but also from their supporting sectors.
On the other hand, BP Batam believes that the acceleration of investment must be accompanied by the readiness of infrastructure and utilities. The government needs to not only accelerate regulations and investment services but also ensure that the basic needs of the industry are available from the upstream.
“Regarding utilities, we must develop the upstream. We must push investments to move quickly, but we cannot have the infrastructure and utilities remain unready,” he said.
Fary stated that the energy and water requirements for data centres need to be carefully calculated so that the growth of the industry does not disrupt the supply for the general public.
“Particularly for data centres, we will precisely calculate the requirements for energy and water, so as not to interfere with the supply needs of the community,” he added.
In addition to data centres, BP Batam is also encouraging technology-based investment in industrial sectors already established in the region. He noted that Batam currently possesses approximately 35 industrial estates and 135 shipyard areas that require the implementation of increasingly modern technology and information systems.
For total investment, BP Batam is targeting a realisation of Rp70 trillion by 2026. In the first quarter of 2024, the investment realisation recorded by BP Batam reached Rp17.48 trillion, representing a year-on-year growth of 102.85 per cent.
“For this third quarter, we hope that investment realisation can reach approximately 95 per cent, or around Rp66 trillion,” he said.
He added that increased investment is expected to drive economic growth through import-export activities, government spending, and consumer spending.
“We must be able to drive investment to foster economic growth. If our economic growth rises, then import-export activities, government spending, and community spending will also increase, providing welfare to the people of Batam and contributing to national economic growth,” he concluded.