Indonesian Political, Business & Finance News

Karangasem Regency Responds to Proposed AI Data Centre Development

| Source: DETIK_BALI Translated from Indonesian | Technology
Karangasem Regency Responds to Proposed AI Data Centre Development
Image: DETIK_BALI

Karangasem has been rumoured to be a potential site for the development of digital infrastructure for artificial intelligence (AI) technology by Biznet. The Karangasem Regency Government has now spoken out regarding this proposal.

The Head of the Karangasem Communication and Informatics Office (Diskominfo), Ida Nyoman Astawa, stated that no official information has been received regarding the plan. He noted that he only became aware of the proposal through social media.

“Up to this point, there has been no official information from Biznet; I only received that information yesterday evening from social media,” said Astawa on Tuesday (6/10/2026).

Astawa does not yet know the specific details of the proposed AI infrastructure development, including the exact location rumoured to be in Karangasem. According to him, there has been no formal audience with Biznet regarding this matter so far.

Despite the lack of official information, Astawa believes that the construction of an AI data centre would have both positive and negative impacts on Karangasem. He emphasised that the development plan must be approached seriously and requires in-depth study before proceeding.

AI development should directly benefit the community. One positive impact could be the creation of investment opportunities, establishing Karangasem as a technological hub, and absorbing local labour.

However, there are certainly negative implications regarding this AI development, particularly concerning the environment. One major concern is the significant requirement for water resources to support the cooling systems of such infrastructure.

“The development requires water resources for cooling. However, we do not yet know the specifics of the technology, given that this is currently only a proposal and its certainty remains unknown,” Astawa remarked.

Astawa added that the Karangasem Diskominfo intends to directly query Biznet regarding the AI data centre plans. This inquiry is planned to take place during the Karangasem Regency Government’s evaluation of their partnership with the company.

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