Batam, April 23, 2025 – As Southeast Asia’s digital economy surges forward, Indonesia is emerging as a pivotal hub for data center investment and innovation. With a national agenda centered on artificial intelligence (AI) readiness, digital transformation, and sustainable development, the country has become a key destination for global digital infrastructure players. Batam, in particular, is rapidly evolving into a strategic location, thanks to government incentives under its Special Economic Zone (SEZ) and close proximity to regional digital markets like Singapore.
This momentum was showcased during Schneider Electric’s Innovation Day Batam 2025, an industry convergence that brought together leaders from government institutions, industry associations, and digital infrastructure companies to address Indonesia’s readiness for AI-powered growth. Speakers included Imam Soejoedi, Expert Staff for Macroeconomic Affairs at the Ministry of Investment (BKPM), and Hendra Suryakusuma, Chairman of the Indonesia Data Center Provider Organization (IDPRO), who shared insights on Indonesia’s national investment climate and the evolving role of data centers in driving economic resilience.
“Indonesia is not only attracting record-breaking digital investments but also strengthening its role as the digital infrastructure gateway for Southeast Asia. In 2024 alone, the country recorded an investment realization of Rp1,714.2 trillion—an increase of 20.8% compared to the previous year—surpassing the government’s target of Rp1,650 trillion by 103.9%. Notably, the Riau Islands contributed Rp35.36 trillion to this figure, with Batam City accounting for Rp25.47 trillion,” said Imam Soejoedi, Expert Staff for Macroeconomic Affairs at the Ministry of Investment (BKPM).
He continued, “In the data center and telecommunications sector specifically, Batam attracted Rp446.76 billion in investment during the 2023–2024 period, primarily driven by foreign direct investment from Singapore, Hong Kong, the United States, Malaysia, and India. This reflects the strong confidence global investors have in Indonesia’s investment climate. Through policies that support ease of investment, strategic zones like Batam, and collaboration with forward-looking industry players, we are ensuring that Indonesia becomes a cornerstone for the region’s digital future.”
“Data centers are the foundation of a future-ready digital ecosystem and Indonesia is well-positioned to lead in this space, especially with our growing emphasis on high-density, sustainable infrastructure. Strategic partnerships among the private sectors set a strong precedent for how we can accelerate national digital transformation,” said Hendra Suryakusuma, Chairman of the Indonesia Data Center Provider Organization (IDPRO).
Growing Demand, Sustainable Infrastructure
Indonesia’s data center market is experiencing unprecedented growth, backed by surging internet consumption, digital services, and government policies supporting localized data sovereignty. According to the e-Conomy SEA Report 2024, the country ranks second in Southeast Asia in current data center capacity (202 MW) and is expected to expand by 268% in the coming years.
To meet this demand, operators are focusing on AI-capable, high-density, and energy-efficient infrastructure that aligns with both technological and environmental imperatives. One of the latest data center initiatives in Batam comes from BW Digital, a key innovator in digital infrastructure headquartered in Singapore. BW Digital is now making its first foray into data center development in Indonesia, selecting Batam as the launchpad for its digital infrastructure ambitions. In a major move, BW Digital has entered a strategic technology partnership with Schneider Electric. This collaboration will deliver an AI-ready, high-density, and power-efficient data center facility in Batam—leveraging an extensive Schneider Electric solution.
“This partnership goes beyond infrastructure—it is about shaping the future of Indonesia’s digital and AI economy. At Schneider Electric, we are committed to empowering the next generation of data centers with intelligent, scalable technologies that are deeply rooted in sustainability and national progress. By combining Schneider’s global expertise in energy management with BW Digital’s strategic ambition, we are enabling Indonesia to lead the region in AI-driven infrastructure,” said Martin Setiawan, President Director Indonesia & Timor-Leste, Schneider Electric.
“Indonesia’s digital economy is advancing rapidly, demanding parallel growth in supporting infrastructure. To meet this exponentially rising demand, BW Digital is constructing an integrated digital ecosystem in Indonesia with Batam’s Nongsa Digital Park as its centerpiece. Combining the NDP1 data center, the Nongsa-Changi submarine cable and Citra Connect’s terrestrial fiber network, our ecosystem will offer scalable, sustainable and cost-effective solutions for enterprise, cloud and AI workloads. Our collaboration with Schneider Electric is not merely a project - it is a strategic initiative designed to future-proof Indonesia’s digital landscape and establish Batam as a prominent domestic and regional digital hub,” said Florent Blot, Chief Business Officer - Data Center & Value-Added Services, BW Digital.
The Schneider-BW Digital partnership will directly support Indonesia’s Digital Indonesia Vision 2045 and National AI Strategy, aiming to equip the country with the compute power necessary for large language models (LLMs), real-time analytics, and AI-driven industrial applications.
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About BW Digital
BW Digital is a subsidiary of BW Group, a global energy and maritime group controlling 7 listed companies with a combined market capitalisation of around US$11 billion.
Headquartered in Singapore, BW Digital develops, builds and operates digital infrastructures in the Asia-Pacific region. Our vision is to create a sustainable digital ecosystem combining connectivity, data storage and value-added services for cloud and AI workloads.
For more information, please visit www.bw-digital.com
