Batam’s growing data center industry is expected to require additional water and electricity infrastructure, prompting calls for operators to develop independent supplies rather than increase pressure on resources used by local residents. The infrastructure requirements extend beyond water as BP Batam estimates that existing facilities, investment commitments and planned projects represent a combined IT capacity of 1.47 GW, creating additional demand for reliable electricity supply.
The proposal supports BP Batam’s plan to encourage data center companies to establish their own desalination facilities in the Nongsa Special Economic Zone and Kabil industrial area. The endorsement uses Seawater Reverse Osmosis (SWRO) technology, which converts seawater into freshwater, to meet the industry’s water demand, according to a report by antaranews.
Muhammad Iftitah Sulaiman Suryanagara, Transmigration Minister, Indonesia, said, “Investment must go hand-in-hand with responsibility. Water requirements for data centers must be properly addressed, including through SWRO. The presence of data centers is not merely about technology; it also represents an opportunity for the community to secure employment, acquire skills, and earn better incomes.”
Batam has 10 data center projects in its development pipeline, including one that is already operating. The planned desalination facilities are expected to initially contribute 750 liters of water per second over the next two to three years. A subsequent expansion could raise output to 1,000 liters per second.
The expansion could strengthen Batam’s position in the global digital economy, provided infrastructure development is matched by workforce preparation and investment certainty.
The sector has already attracted major investment. In May 2026, BP Batam facilitated a US$ 5 billion project to develop an artificial intelligence data center on a 30 hectare site in Nongsa.