Indonesia Prepares Rp 360 Trillion Data Centre Investment, Including Nvidia
Coordinating Minister for Economic Affairs Airlangga Hartarto has announced a planned data centre investment worth US$15-20 billion (around Rp 270-360 trillion), which will add capacity of up to 1.3 GW, with Nvidia participating and fibre optic cable development scheduled for 20 July 2026.
Key points:
The data centre project investment is estimated at US$15-20 billion (around Rp 270-360 trillion).
Nvidia will collaborate with Australia on building the data centre.
The government has scheduled the inauguration of two fibre optic cable landings for 20 July 2026.
The government’s target is to train 15,000 engineers to join the Arm ecosystem.
How will this major investment change the data centre landscape in Indonesia?
According to Detik, an injection of hundreds of trillions of rupiah will make it possible to more than double the country’s current data centre capacity. The planned addition of 1.3 GW is intended to meet hyperscale needs and artificial intelligence applications that increasingly demand high computing power. Investor.id added that the capacity already built stands at only 580 MW, meaning the new target will significantly expand the national digital infrastructure. This increase in capacity means Indonesia can offer cloud services with lower latency and become more attractive to global technology companies seeking to operate in the Asia-Pacific region.
Why did Nvidia choose to cooperate with Australia for the data centre project in Indonesia?
Investor.id reported that Nvidia chose Australia as a strategic partner because of its mature cloud ecosystem and geographical proximity, which facilitates network integration. Airlangga Hartarto explained that the collaboration aims to leverage Australia’s technological strengths whilst positioning data centres in Indonesia as a regional hub. The partnership provides access to cutting-edge chip technology and AI services, while also strengthening Indonesia’s position in the semiconductor supply chain. As a result, Nvidia’s presence could accelerate the adoption of AI solutions by local companies and enhance the technical capabilities of Indonesian engineers.
What is the impact of the dual-landing fibre optic cable construction on Indonesia’s global connectivity?
As stated by the Coordinating Ministry through Airlangga Hartarto’s remarks, the two fibre optic routes to be inaugurated on 20 July 2026 will directly connect Batam-Singapore and Bitung-United States. This dual connection is expected to significantly reduce latency and increase the bandwidth needed to power hyperscale data centres. With more direct submarine routes, cloud service providers can improve the reliability and speed of data transfers between continents. Consequently, Indonesia has the potential to become a regional data transit hub, attracting more investment in digital infrastructure and strengthening its technology-based economy.