Indonesian Political, Business & Finance News

PLN Signs Largest Electricity Supply Contract with Data Centre

| Source: CNBC Translated from Indonesian | Infrastructure
PLN Signs Largest Electricity Supply Contract with Data Centre
Image: CNBC

PT PLN (Persero), through PT PLN Batam, has signed an Electricity Power Purchase Agreement (PPA) with a capacity of 511 Mega Volt Ampere (MVA) for the data centre project owned by PT Digitalland Service One (DayOne).

This agreement is recorded as the largest electricity supply contract for the data centre sector in Indonesia, specifically in the Kabil Industrial Estate industry in Batam.

The signing of the PPA took place at the Balairung Sari Auditorium, Batam Development Agency (BP) Batam, on Friday (17/4/2026).

PLN’s President Director, Darmawan Prasodjo, stated that the availability of stable and affordable electricity supply is key in the digital industry. He assessed that strong electrical infrastructure will provide multiplier effects for the national economy and attract more foreign investment to the country.

“Electricity is the main driver of the economy. With strong and reliable electrical infrastructure, it not only maintains the continuity of industrial activities but also creates a conducive climate for investment and opens up more job opportunities,” he said in an official statement, quoted on Monday (27/4/2026).

This collaboration is aimed at supplying energy for DayOne’s global data centre project. This step is a major strategy to position Batam as one of the leading digital infrastructure hubs in the Asia-Pacific region.

Meanwhile, DayOne’s Chief Executive Officer (CEO), Jamie Khoo, stated that the expansion of capacity in Batam is a milestone for the company in building a regional digital infrastructure platform.

“As we expand development in Batam, we continue to increase capacity to deliver large-scale, high-performance data centre services to meet the growing needs for cloud and advanced computing in the Asia-Pacific,” he said.

The signing of this jumbo contract also received support from the local government to accelerate the creation of a conducive investment climate in the Riau Islands region. The integration of land availability, legal certainty, and energy reliability is deemed capable of making Batam a competitive area at the regional level.

Head of BP Batam, Amsakar Achmad, emphasised that infrastructure readiness is a key factor in attracting global digital investors to the area.

“BP Batam is committed to providing a conducive investment climate through accelerating permits and providing integrated supporting infrastructure. The entry of this large-scale data centre project proves that Batam is ready to become a world digital hub,” he said.

On the other hand, PLN Batam assured that the readiness of the electricity system in its working area is sufficient to serve large-scale energy demands. The company is committed to maintaining service quality and system reliability so that digital industry needs can be met sustainably.

“We hope this collaboration benefits all parties and makes a real contribution to regional economic growth and improved investment climate in Batam. We are committed to maintaining the reliability of supply and the quality of electrical services to support industry needs sustainably,” concluded the President Director of PT PLN Batam, Kwin Fo.

View JSON | Print