Indonesia is planning to expand digital zones in Batam Island as the island’s zones are now operating at full capacity, says Chief Economic Affairs Minister Airlangga Hartarto recently, according to reports.
“The Batam digital zone has already sold out. Global players like Google, Amazon Web Services, and Oracle have secured their spots,” Airlangga reportedly told the Investor Daily Roundtable in Jakarta. “We’re now preparing for an expansion to meet the growing demand.” No further details were given about the planned expansion.
Batam’s Nongsa Digital Park has emerged as a focal point for Indonesia’s data infrastructure ambitions. Its proximity to Singapore and Malaysia, combined with its free trade zone status, makes it an attractive location for foreign investors looking for alternatives to land- and energy-constrained Singapore.
As of mid-2025, at least 10 data centers are under development in Nongsa. Key investors include DayOne, Singapore-based Princeton Digital Group, New Zealand’s BWD, Hong Kong’s GAW Capital, and US giants AWS and Oracle.
Indonesia Investment Authority (INA) and Singapore’s DayOne are developing a data centre campus in Nongsa Digital Park which is expected to be fully constructed by the end of this year. Singapore lenders DBS Group and United Overseas Bank who had extended 6.7 trillion rupiah (US$ 411 million) of financing to the Indonesian sovereign wealth fund and DayOne had said the campus will have total capacity of 72 MW when completed, equivalent to 5% of Indonesia’s projected data centre capacity of 1.41 gigawatts by 2029.
Airlangga added that the country is seeing interest from global tech giants even as it declares data centers as a strategic national asset in an era increasingly defined by artificial intelligence and data-driven economies. It has ambitions to position itself as Southeast Asia’s next major digital infrastructure hub.
Nongsa has signed electricity supply agreements for up to 369 MVA by 2031; current capacity stands at about 2×30 MVA, with projected demand exceeding 1,000 MVA. To meet this demand, operators are exploring renewable energy sources, including hydroelectric power from Sumatra.
Indonesia’s vast and digitally connected population gives it a competitive edge as global tech firms move computing power closer to users to reduce latency and improve efficiency. Jakarta already hosts more than 65 operational data centers, and new investment is increasingly spreading beyond the capital.
Indonesia’s digital economy, already the largest in Southeast Asia, is forecast to reach US$ 146 billion by 2025, according to a Google-Temasek-Bain report. The broader regional market is expected to hit US$ 330 billion, driven by AI, e-commerce, fintech, and cloud services.
The country’s data center market alone is projected to double from US$ 1.67 billion in 2023 to $3.43 billion by 2028, growing at a compound annual rate of 15.2 percent, according to Jakarta Globe quoting Mordor Intelligence and Arizton.
