Geopolitical Conditions Bring 'Blessings' for Data Centre Investment in Indonesia
Jakarta, CNBC Indonesia - Chairman of the Indonesia Data Center Provider Organization (IDPRO) Hendra Suryakusuma said the current geopolitical situation is having a positive impact on the data centre sector. The conditions are attracting global investors to Indonesia.
“One of our members, DAMAC Digital, which initially only wanted to build 120 MW, now wants to build 2 GW. We have even heard that the UAE wants to build a data centre in Indonesia,” he said during the launch of the research findings “The Sustainability Shift: Indonesia’s Industrial Landscape in Five Key Sectors, Opportunities and Risks” on Thursday (20/8/2026).
It is known that since August 2025, DAMAC has begun the groundbreaking process for its data centre in Jakarta with an investment value of US$ 150 million. The final stage of infrastructure completion, or topping off, for the data centre named JKT01 - Jakarta Central is taking place this year.
Another condition bringing positive impact is the United States’ ban on exporting Nvidia H200 chips to China, aimed at protecting its dominant position and technological advantage.
“So what happens is that a lot of AI servers are purchased in Singapore or Hong Kong, managed in Indonesia, and used for the interests of companies in China,” Hendra explained.
In the context of investment, he continued, 1 megawatt is needed to build 3 data centres, requiring US$ 10 million to US$ 11 million. This means that to build 3 data centres, more than US$ 1 billion is required.
According to Hendra, IDPRO is currently preparing a scientific study on the impact of data centre investment on potential gross domestic product growth.
“This means if we can reach 1.7 GW by the end of this year, hopefully. From just 1 GW alone, PLN can earn revenue of Rp 1.7 trillion per month,” Hendra said.
On the same occasion, Head of Research at PT Bank DBS Indonesia William Simadiputra explained that data centres are one of the potential sustainability programmes in Indonesia. The sector is part of the technology, media, and telecommunications (TMT) industry.
“Previously we always saw TMT as always about connectivity, how we develop BTS, how we develop cellular penetration to non-Java regions. But the opportunity right now among TMT companies is the green data centre,” he said.
William noted that the massive use of AI at present is causing a shortage of memory chips. Data centres have become a platform requirement to direct or accelerate AI penetration in Indonesia.
“Data centres have become a platform requirement to direct or accelerate AI penetration in Indonesia, which contains advantages in local content and is more relevant to Indonesian society,” he said.