Industry players warn that AI-driven expansion could deepen water stress in Jakarta and Batam
Indonesia’s fast-growing data center industry is facing a new challenge beyond electricity demand: water. As AI-related expansion accelerates, industry leaders and researchers are warning that water availability may become one of the sector’s most serious long-term constraints.
Water Is Becoming a Strategic Issue
The Indonesian Data Center Provider Organization, or IDPRO, says water is now emerging as the second major strategic issue for the industry after energy. Chairman Hendra Suryakusuma said demand for data centers driven by the global AI surge is significantly increasing pressure on water resources, especially because some cooling systems consume large amounts of water every day.
Cooling Technology Makes a Major Difference
According to Hendra, water consumption depends heavily on the cooling system used. Air-cooled chillers use very little water, while water-cooled systems such as cooling towers and evaporative cooling setups consume much more. He cited global benchmarks showing that hyperscale data centers can use between 1 million and 5 million liters of water per day, particularly when evaporative cooling is involved.
Jakarta and Batam Face Structural Pressure
The issue is especially sensitive because Indonesia’s data center development has been concentrated in Greater Jakarta and Batam, both of which already face water-related constraints. Research cited in the article found that both locations suffer from chronic climatic inefficiencies, with hot and humid conditions forcing facilities to rely heavily on energy-intensive mechanical cooling. That structure raises power usage effectiveness, water consumption, and carbon footprints at the same time.
Industry Is Looking for Smarter Solutions
Because of these pressures, some operators are moving away from large-scale cooling towers and designing systems with minimal water dependency. Suggested solutions include air-cooler chillers, indirect or direct air economizers, liquid and immersion cooling for dense AI workloads, and water recycling and reuse. Operators are also exploring alternative water sources such as reclaimed water and rainwater harvesting, while some are considering sites outside Jakarta where water and utility infrastructure may be more stable.
Governance and Transparency Are Now Key
Researchers say the challenge is no longer only technical, but also regulatory and social. Hotmauli Sidabalok of Yayasan Amerta Air Indonesia warned that competition between basic human needs and industrial demand could create environmental injustice, especially in a time of worsening climate-related water scarcity. Ayom Mratita Purbandani from Gadjah Mada University’s Center for Digital Society added that many firms still treat water use as proprietary information, making it hard for regulators and communities to assess the real impact. She called for mandatory public reporting of water usage effectiveness, tighter permitting, and stronger community benefit agreements to reduce inequality.
Indonesia’s data center growth may be powered by AI, but its long-term sustainability will depend just as much on water as on electricity. For Indonesians, especially in Jakarta and Batam, the issue raises urgent questions about how digital infrastructure can expand without worsening pressure on already limited resources. For Singaporeans watching the region’s tech buildout, it is a reminder that the future of AI infrastructure in Southeast Asia will also be shaped by environmental limits, governance quality, and public accountability.
Sources: Asia News Network (2026) The Jakarta Post (2026)
Keywords: Indonesia Data Centers, Water Demand, Artificial Intelligence, Jakarta Water Supply, Batam Data Centers, Cooling Systems, Environmental Governance
