01
Energy sources
Geothermal, hydro, gas, solar, renewables
Indonesia has a diverse range of energy sources that can be assessed as part of the power supply strategy for AI infrastructure in each corridor.
Why Indonesia for AI data centers?
Indonesia has diverse energy sources, land potential, a strategic position in Southeast Asia’s digital ecosystem and infrastructure that keeps being built.
Six reasons to look at Indonesia
Power, land, location and a growing market.
02
Strategic land
Large enough to develop in phases
PALLAS assesses core land and expansion potential in regions that pass energy, infrastructure, environmental and spatial planning screening.
03
Regional connectivity
ASEAN, Singapore, international networks
Indonesia holds a strategic position in Southeast Asia’s digital ecosystem, with domestic and international connectivity to be validated at corridor and site level.
04
Digital economy
AI, cloud, data growth
A large, growing digital economy needs data centers for the long term.
05
Infrastructure build-out
Grid, fiber, roads, ports, utilities
PALLAS inferenceNew industrial areas and infrastructure can become the next AI corridors.
06
Investment interest
Global interest in digital infrastructure
Market evidence · Updated October 2026Based on publicly announced investments, power commitments and data center expansion plans in Indonesia.
Sources: see the list below the cards.
Market evidence sources · updated October 2026
- Microsoft: US$1.7 billion over four years for cloud and AI in Indonesia (30 April 2024)
- AWS: Asia Pacific (Jakarta) Region, a planned investment of about US$5 billion over 15 years (14 December 2021)
- Digital Edge: CGK campus in Bekasi, US$4.5 billion, 500 MW of IT capacity, scalable to 1 GW (28 January 2026)
- PLN Batam and DayOne: a 511 MVA power purchase agreement for a data center campus in Kabil, Batam (April 2026)
Responsible AI infrastructure
Indonesia's AI infrastructure opportunity needs to be developed with reliable energy, resilient systems, efficient water use and cooling, environmental protection, community engagement, strong governance and long-term national value.
- 01
Energy resilience
Reliable, scalable and diversified power supply pathways.
- 02
Water and cooling stewardship
Efficient cooling design, water balance, reuse and responsible resource management.
- 03
Security and critical infrastructure
Physical security, connectivity resilience, business continuity and cyber readiness at the infrastructure layer.
- 04
Environmental protection
Hazard screening, environmental assessment, land-use discipline and low-carbon development pathways.
- 05
Value for communities and regions
Local jobs, supplier participation, regional infrastructure and constructive community engagement.
- 06
Government and policy alignment
Transparent permitting, investment coordination, energy regulation, security and long-term development alignment.
The PALLAS proposition
LandEnergyConnectivityDevelopment readinessResponsible governanceValue for Indonesia
Long-term value for Indonesia
What this development can support for government, communities and local partners.
- 01
Energy development
Can support new generation, grid, energy storage and transmission infrastructure.
- 02
Digital connectivity
Can strengthen fiber backbone networks, redundancy and regional connectivity.
- 03
Regional development
Can bring new investment to corridors beyond the traditional data center hubs.
- 04
Local jobs and suppliers
Can create construction, engineering, operations, security and utility work, with room for local suppliers.
- 05
Talent and technology
Can develop technicians, engineers, data center operations skills and knowledge transfer.
- 06
Indonesia's digital position
Can strengthen Indonesia's place in the global cloud, AI compute and digital infrastructure value chain.
PALLAS seeks to connect global AI infrastructure demand with Indonesia's energy, land, infrastructure, talent and long-term development value.
Benefits depend on the site, its scale and project validation.
Demand for AI data centers is rising
AI computing needs a lot of power. The hard part now is finding sites where power, land and networks are all available together.
See the corridors we are studying- 01AI compute grows
- 02Power demand rises
- 03Sites near power sources
- 04AI data center campus
- 05Long-term infrastructure
Common questions
Why is Indonesia a good fit for AI data centers?
Indonesia has varied energy sources (geothermal, hydro, gas, solar), land potential, a strategic position in Southeast Asia’s digital ecosystem and a growing digital economy. Each corridor and site still has to be validated.
Which power sources can AI data centers use in Indonesia?
The grid, gas, geothermal, hydro and solar. Each PALLAS corridor is studied with a different energy mix, based on the sources available in that region.
What is the hardest part of building an AI data center in Indonesia?
Finding a site where large power, land and fiber are available together, with a clear permitting path. That is what PALLAS screens and validates before a site is offered to developers.