Central Java Government Backs AI Data Centre Project in Batang, Expects Economic Growth to Rise

SEMARANG — The Central Java Provincial Government says it will support the construction of an artificial intelligence (AI) data centre at the Batang Integrated Industrial Estate (KITB). It believes the project will contribute to economic growth.

“We strongly support this data centre investment because, looking at its impact, Central Java will at least benefit from the multiplier effect — the ripple effect of operating the data centre,” said Johan Hadiyanto, head of the Central Java Investment and One-Stop Integrated Services Agency (DPMPTSP), at a press briefing at his office in Semarang on Monday (26 October 2026).

He said economic growth would be one of the positive effects of building the AI data centre at KITB. “Of course, our economic growth will also increase. It will also require workers, goods, services and supporting industries, and will improve the skills of workers in digital technology, data engineering and digital infrastructure,” he said.

Johan said that, if realised, the AI data centre at KITB could become part of a high-tech industrial ecosystem in Central Java. “This supports the diversification of our strong manufacturing base towards a more technology-intensive ecosystem, including AI, digital infrastructure, electronics and other high-tech digital sectors,” he said.

He added that planning for the AI data centre at KITB was still progressing, including the assessment. “As for whether construction has begun there, it is currently in process. And the capacity is not one gigawatt; it is only 240 megawatts,” he said.

Johan urged the public not to be concerned about the planned data centre, saying the infrastructure would be built in an industrial estate and special economic zone.

“If it is in an industrial estate and special economic zone, then the resources have already been considered in terms of feasibility, permits and so on. I think the resources in the economic zone have been taken into account,” Johan said.

Meanwhile, Central Java Deputy Governor Taj Yasin said the assessment of the proposed AI data centre at KITB was not yet complete. Asked whether the government was preparing for possible opposition from local residents, Yasin offered little comment.

“Once the assessment is complete, we can plan for that. For now, we can only explain that the central government has undertaken work on AI in Batang Regency. But we, as the regional government, will continue to review the assessment,” Yasin said in an interview at the Central Java Regional Legislative Council office.