PGE prepares baseload electricity supply for Green Data Centres

PT Pertamina Geothermal Energy Tbk (PGE) is preparing geothermal energy as a renewable energy baseload power source to support the growth of data centres and the Artificial Intelligence (AI) ecosystem in Indonesia.

“Data centres require electricity that is both reliable and green. Geothermal is a clean domestic energy source capable of operating as baseload at all times, making it highly suitable to serve as the backbone for green data centres in Indonesia,” stated PGE President Director Ahmad Yani in a statement received in Jakarta on Friday.

According to data from the Ministry of Communication and Digital (Komdigi) and the Indonesian Internet Service Providers Association (APJII), Indonesia is entering an era of digital transformation with an increasing demand for data centres. This development is supported by 235.26 million internet users and 185 existing facilities, a number expected to continue growing through 2029-2030.

Ahmad Yani explained that the requirements for data centres and AI factories are very specific, namely that the electricity supply must be stable, available 24 hours a day, and clean. These characteristics are difficult to meet using intermittent renewable energy sources.

He noted that PGE has begun concrete steps through a study on the development of green data centre electrification using geothermal energy in the Kamojang Area, West Java. The project is designed as a pilot project and proof of concept to validate the business model, explore the needs of potential users, and prepare the market.

To encourage the optimal development of renewable energy-based data centres, particularly geothermal, he noted that several key steps require full support. First, refining tariff regulations to make them more competitive, transparent, and predictable; second, expanding the use of fiscal incentives and green financing.

“Third, strengthening the synchronisation of Working Areas (WKP), Electricity Supply Business Plans (RUPTL), networks, Power Purchase Agreements (PPA), and Commercial Operation Date (COD) targets. Fourth, it is necessary to adjust strategies with government policies within the national blueprint for data centre and geothermal development,” concluded Ahmad Yani.