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View all search resultsLimited green energy access stalls RI’s AI data center push
Communications and Digital Minister Meutya Hafid noted that Indonesia’s AI adoption rate is among the highest in the region, though it mostly involves “entry-level” activity.
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Meutya Hafid, Communication and Digital Minister, speaks during a meeting as part of a media visit by the Communication and Digital Ministry to the The Jakarta Post building in Jakarta on Thursday, Feb. 19, 2026. (JP/Iqro Rinaldi)
G
reen data center development in Indonesia remains hampered by low renewable energy supply amid the country’s push to embrace and leverage the artificial intelligence boom.
During a media visit to The Jakarta Post on Thursday, Communications and Digital Minister Meutya Hafid acknowledged that access to green energy is a key challenge for Indonesia, as the country is still falling behind its peers, particularly Malaysia and Singapore, in the development of green data centers.
“Our renewable energy is yet to be prioritized for data centers. It’s been utilized for other [priority sectors],” she said.
Tenggara Stategics, a think tank affiliated with the Post, revealed its joint study with several other institutions that, despite Indonesia’s position as Southeast Asia’s largest economy, its green data centers only account for one-third of those in Singapore and Malaysia, with many of the hyperscale data center developers favoring the two neighboring countries.
Another point made was that Indonesia’s digital readiness is relatively lower compared to both peers, partly because of a lack of digital data protection measures.
Both Singapore and Malaysia have also assigned specific agencies for green data center development, namely the Singapore Economic Development Board (EDB) and the Malaysian Investment Development Authority (MIDA), while Indonesia has yet to establish such an agency.
Read also: RI looks to partner with Malaysia, Singapore for cross-border data center
