Challenges of Data Center Development in Indonesia Regarding Environmental Issues
Published
The development of data centers has become a hot topic in various countries, including Indonesia. The Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN), Agus Harimurti Yudhoyono (AHY), revealed that projects to build these facilities are beginning to face opposition in many places.
The opposition is primarily triggered by concerns from the public and local governments regarding environmental impacts. Data centers are known as facilities that require a massive amount of electrical energy consumption to operate for 24 hours a day. Furthermore, the extensive land use has also become a specific concern in spatial planning.
Globally, a similar trend is occurring. Many countries have begun to tighten regulations on data center development due to energy sustainability issues. The high electricity demand from these facilities is feared to burden the national power grid and hinder the green energy transition targets currently being pursued by the government.
AHY explained that the Indonesian government must now be more cautious in granting construction permits. Proper spatial planning is key to ensuring that digital technology needs are met without having to sacrifice environmental sustainability and energy availability for the wider community.
Moving forward, the government is expected to find a balanced solution. Technological innovation that is more energy-efficient and the selection of appropriate locations are crucial steps to ensure that data center development in Indonesia remains in line with the principles of sustainable development.
Sources: CNBC Indonesia
More Indonesia news
- Huawei Watch D3 Launches in Indonesia on 19 November 2026
- Riau Islands Becomes Indonesia's Most Digitally Connected Province in 2025
- Indonesia's Digital Economy Potential Reaches USD 365 Billion, Government Strengthens AI Infrastructure
- Developing Chip Technology Requires the Support of Indonesia's Semiconductor Talent
- Giring Ganesha Leaves PSI, Party Says Political World Is Full of Change
- PT Rans Animasi Indonesia Wins Influencer Contract Worth Rp14.7 Billion from Two Ministries
- Indonesia Surrounded by Sea, But Port Investment Remains Limited
- Sanur SEZ Records 36,798 Patient Visits, Strengthens National Health Tourism