Differing Views Between Airlangga and World Bank on Data Centre Investment
The World Bank sees potential for excess investment due to the imbalance between investments in artificial intelligence (AI) infrastructure such as data centres and the still low level of technology implementation in the Asia-Pacific region.
In contrast to the World Bank, Coordinating Minister for the Economy Airlangga Hartarto stated that more investment and construction of data centres in Indonesia would be increasingly beneficial and have a positive impact on the national economy.
“Because data centres are paid for by the applications. So the more capacity, the better,” he said to the media at the Coordinating Ministry for the Economy office in Jakarta on Thursday (8/4/2026).
In developing data centres, Airlangga said Indonesia is highly competitive due to its abundant energy sources and large market. Thus, it can attract more massive data centre investments and AI ecosystems.
“Indonesia is very competitive. Because in terms of land cost we excel, then in terms of power availability, and also water availability. So compared to other countries, Indonesia has advantages. But add to that the users, with 287 million population,” he said.
Based on the World Bank report, global private investment in generative AI has surged from nearly zero in 2019 to US$34 billion in 2024.
Malaysia leads with around 700 megawatts (MW) of operating data centres and projects exceeding 3,000 MW; Indonesia and Thailand are also experiencing significant data centre investments.
AI-related exports have grown rapidly in several East Asia and Pacific (EAP) economies in recent years. Semi-finished goods, particularly semiconductors, remain the backbone of AI-related trade across the region, although exports of equipment such as data centre hardware have grown significantly.
However, despite the rapid increase in investment, only about 13% to 17% of multinational subsidiaries in the region use AI, compared to 37% in the United States. AI adoption in EAP is also concentrated in multinational companies, with domestic firms far behind.
In 2025, the Directorate General of Digital Infrastructure (Komdigi) revealed that Indonesia experienced rapid growth in internet network users, reaching 353.8 million, a figure that even exceeds the national population. Therefore, data centres have become a necessity for Indonesia, and the data centre industry is estimated to grow at 14% per year until 2028.
Denny Setiawan, Director of Strategy and Digital Infrastructure Policy, said the trend of AI adoption is also one of the driving factors increasing data centre capacity.
“And to support this development, it is estimated that large capacity will be needed to support AI technology, initially around 202 MW in 2024 to 743 MW in the coming years,” he explained.
This surge is tangible evidence and marks Indonesia’s transformation towards a more advanced digital economy in the future.
As the country with the largest digital economy in Southeast Asia, Indonesia has a strategic position to lead the regional data centre market. The presence of data centres will strengthen national competitiveness, accelerate digital transformation across sectors, and open up sustainable investment opportunities in the technology industry.