Electricity Supply to Data Centres Attracts Digital Industry Investment
Energy infrastructure readiness is a key factor in attracting digital and information technology industry investments to Batam. Consequently, PLN Batam and PT Equator Gate System Batam signed a power purchase agreement (PPA) on Monday (25 May).
The partnership is a strategic move to support the power requirements for the development of PT Equator Gate System Batam’s data centre in Nongsa, Batam City. PLN Batam will provide reliable electricity supply incrementally to support the operations of the large-scale data centre.
Acting Head of Batam Development Board (BP Batam), Li Claudia Chandra, stated that the collaboration is a strategic step to strengthen Batam’s readiness as a digital economic growth hub and global digital infrastructure corridor alongside Singapore and Johor. ‘BP Batam welcomes the investment commitment for the EGS AI Data Centre mega-project in Nongsa,’ said Li Claudia Chandra.
Li Claudia also expressed hope that this strategic project would deliver tangible multiplier effects for the community, particularly in creating new job opportunities, enhancing local high-tech talent, and strengthening Batam’s competitiveness at national and regional levels.
PLN Batam’s Managing Director, Kwin Fo, said the partnership holds strategic significance in supporting the development of a digital economy ecosystem and high-tech industries. ‘This collaboration is not merely about electricity supply but represents mutual trust and commitment to building a robust digital ecosystem in Batam,’ said Kwin Fo.
He explained that the development of data centres in Batam is crucial for transforming the city into a digital economic growth hub and strategic investment area in Indonesia. ‘Through this collaboration, we aim to demonstrate that Batam is well-prepared to become a data centre and digital economy hub supported by reliable and sustainable energy infrastructure,’ he said.
Meanwhile, PT Equator Gate System Batam’s Director, Efendi, stated that the company will construct the EGS AI Data Centre in Nongsa with an investment value of $5 billion (Rp88 trillion). The AI-based data centre will be built on a 30-hectare site and designed as a hub for AI processing, machine learning, and modern cloud computing across Southeast Asia.