Government aligns energy planning with AI infrastructure development

Denpasar (ANTARA) – The Indonesian Government is coordinating plans to build data centres and AI factories so they can be integrated with energy planning, allowing digital technology development to proceed alongside the necessary supporting infrastructure.

“Matters relating to the construction of AI factories, including AI factory data centres, should no longer be handled separately by each sector, but through strong coordination,” Minister of Communication and Digital Meutya Hafid said at Bali Tech Week (BTW) 2026 in Denpasar on Tuesday.

An AI factory is large-scale computing infrastructure that provides processing capacity for developing and operating various artificial intelligence (AI) services.

Meutya said AI infrastructure should no longer be planned separately by each sector. This includes the energy ecosystem, which is a key foundation for the continued development of AI in Indonesia and globally.

“Strong coordination with the Coordinating Ministry for Downstreaming and Energy Transition is important because it encompasses the energy ecosystem that supports the continued development of AI,” Meutya said.

Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia also stressed the importance of aligning data-centre planning with energy provision.

“I will ask those planning to build data centres to provide their site locations, so that the energy supply can be arranged directly,” Bahlil said.

The additional power needed to support data-centre development is estimated at 20 gigawatts, or 20,000 megawatts.

The scale of this demand requires coordinated planning so that digital infrastructure development can keep pace with the readiness of the national energy supply.

Bahlil also said he would regulate data-centre investment to ensure it delivers broader economic benefits.

“We will establish a win-win regulation. We will welcome investors, but they must also show respect and collaborate with national and regional businesses in the areas where the investment takes place,” Bahlil said.

He noted that data centres require substantial technology and capital, but generate relatively limited direct employment. Their operations also require significant resources, including electricity and water. The Government will ensure that communities near investment sites also benefit from the resulting economic activity.