Landmark PLN Batam–DayOne agreement cements Batam’s role as a rising regional digital hub.
Batam has secured Indonesia’s largest electricity supply deal for data centers, signaling the city’s rapid evolution from industrial zone to strategic digital gateway for Southeast Asia.
Record Power Deal For Batam’s Data Center Sector
PT PLN Batam and DayOne officially signed a Power Purchase Agreement (Perjanjian Jual Beli Tenaga Listrik, PJBTL) with a total capacity of 511 MVA at the Balairung Sari Auditorium, BP Batam Office, on Thursday, April 16. This agreement is now the largest PJBTL in Indonesia dedicated to data center needs, reflecting the surging demand for reliable energy in the digital infrastructure sector. The scale of the deal puts Batam in direct competition with other major Southeast Asian cities vying for cloud and data center investments.
BP Batam Highlights Investment Climate And Infrastructure
Head of BP Batam and Acting Mayor of Batam, Amsakar Achmad, emphasized that integrated infrastructure and regulatory ease are central to attracting global investors. He noted that BP Batam is committed to speeding up licensing processes and ensuring a conducive investment climate for digital industries. According to Amsakar, the combination of available land, legal certainty, and dependable energy supply provides Batam with strong competitiveness at the regional level.
PLN Batam Positions Reliable And Sustainable Power
President Director of PT PLN Batam, Kwin Fo, described the collaboration as a milestone for Batam’s digital industry. He underlined that data centers require not only large volumes of electricity, but also high stability and long-term sustainability. Kwin Fo stated that the agreement is a strategic step to support dependable and sustainable energy for digital infrastructure and investment in Batam. He added that synergy between PLN Batam, DayOne, and BP Batam is expected to strengthen Batam’s status as a premier investment destination and digital growth center in Southeast Asia.
Floating Solar Plan Boosts Green Credentials
Alongside the PJBTL signing, BP Batam and PLN Batam also entered into a memorandum of understanding to develop a 200 MWp floating solar power plant (Pembangkit Listrik Tenaga Surya, PLTS) in Batam. If realized, the project could become one of the largest floating solar installations in Indonesia and even Southeast Asia. This initiative is intended to diversify Batam’s energy mix, enhance clean power availability, and align data center growth with regional decarbonization efforts. Kwin Fo expressed hope that this cooperation would deliver tangible benefits for local economic growth and further improve Batam’s investment climate.
DayOne Expands Regional Data Center Footprint
DayOne Chief Executive Officer Jamie Khoo highlighted Batam’s strategic position for regional data center development. He noted that the company’s expansion from Nongsa to Kabil illustrates Batam’s rising importance in the regional digital industry network. According to Khoo, continuous development in Batam forms a core part of DayOne’s strategy to build a leading digital infrastructure platform in Asia. This includes delivering high-performance, large-scale data center services to meet growing cloud and computing needs across the Asia Pacific region.
SIJORI Cooperation Strengthens Cross-Border Digital Ecosystem
Jamie Khoo also pointed to the SIJORI framework, which links Singapore, Johor, and Batam (Riau Islands), as a foundation for a cross-border data center ecosystem in Southeast Asia. By leveraging Batam’s land availability and energy resources, Johor’s industrial capacity, and Singapore’s role as a financial and connectivity hub, SIJORI can support resilient, multi-location digital infrastructure. The enhanced power capacity secured through the PLN Batam–DayOne agreement is expected to make Batam an attractive alternative and complement to data center developments in Singapore and southern Malaysia.
Batam’s Transformation Into A Digital Economy Engine
With large-scale power commitments, potential floating solar capacity, and the arrival of global digital investors, Batam is gradually reshaping its economic profile. Once known primarily as a manufacturing and trade city, Batam is positioning itself as a key engine of the regional digital economy. This transformation is supported by coordinated efforts between government agencies, state-owned utilities, and private technology players, all targeting long-term, high-value digital investment.
Batam’s record-breaking electricity deal for data centers and its planned floating solar project underline a broader shift in Indonesia’s role within the regional digital value chain. For Indonesians, this development promises new jobs, higher-value industries, and stronger integration with global technology networks. For Singaporeans, Batam’s rise as a power-secure, nearby data center hub within the SIJORI framework offers additional capacity, redundancy, and sustainability options that can reinforce the region’s status as a premier digital gateway for Asia Pacific.
Sources: Batampos (2026) , Antara (2026)
Keywords: Batam Data Center, Electricity Supply Agreement, PJBTL 511 MVA, Floating Solar PLTS, Digital Infrastructure, SIJORI Regional Network
