Antara News·Indonesia·Thursday, October 29, 2026 at 08:41 AM UTC

Indonesia eyes data center clusters in industrial estates

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Ahmad Muzdaffar, Resinta Sulistiyandari

We do not want data centers to compete with residential areas for water resources, as this could lead to conflict.

Jakarta (ANTARA) - Indonesia is considering the development of dedicated data center clusters within industrial estates to meet their substantial electricity and water needs while preventing competition with residential areas for resources, Industry Minister Muhammad Sarmuji said.

"Data centers should be located in specific areas. If possible, they should be concentrated in clusters because they require substantial capacity, particularly electricity and water," he said after meeting with the Indonesian Industrial Estate Association (HKI) in Jakarta on Thursday.

Sarmuji also highlighted the need to anticipate potential conflicts over water resources between data centers and residential communities.

"We do not want data centers to compete with residential areas for water resources, as this could lead to conflict. Therefore, dedicated locations are needed, potentially near coastal areas where water can be supplied through seawater desalination. This is among the factors we must consider," he said.

During the meeting, the minister also discussed efforts to increase the utilization of industrial estates, which currently stands at 57.20 percent.

He said higher utilization could support the expansion of industrial estates and contribute to national economic growth. The ministry would work with stakeholders to identify the requirements and obstacles preventing greater use of industrial estates, he added.

The ministry is also encouraging the development of thematic industrial estates outside Java, tailored to the economic strengths and resources of each region. These estates would integrate industrial activities from upstream to downstream, along with the supporting ecosystems needed to sustain them, Sarmuji said.

Meanwhile, HKI Chairman Akhmad Ma'ruf Maulana expressed support for locating data centers within industrial estates, saying the arrangement could simplify management and oversight while helping address electricity and water requirements.

"We hope that data centers can be located within industrial estates for easier monitoring, and water and electricity issues are also handled within the area," he said.

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