Cooling the Data Center Debate

Indonesia’s data center expansion, driven by AI, cloud services, and digital applications, is increasing pressure on water and energy resources. While data centers can have significantly different water footprints depending on their cooling technologies, local conditions determine whether their resource use is sustainable. Batam highlights these concerns, given its limited freshwater resources and growing demand. The discussion calls for site-specific feasibility studies covering water, energy, grid capacity, noise, and environmental impacts. Greater transparency, including regular reporting of water and power usage efficiency, is also needed to balance digital infrastructure growth with community interests and environmental constraints.

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Southeast Asia M&A 2026: Capturing Value in a Growing Market