While other countries are also making strides in sustainable data center design and construction, Indonesia stands out with its unique combination of natural resources and political leadership.
The nation is rapidly gaining popularity as an area with plenty of potential for efficient data center use. The new regulations allow this development to be done sustainably, accounting for the long-term impact on the surrounding environment.
Support From the Indonesian Government
The Indonesian government has announced a series of new regulations on data center energy consumption, hoping to bolster the country’s image as a sustainable and environmentally friendly place to do business.
The Indonesian government has issued several policies, such as facilitating investment permits in the data center industry, tax relief, and offering locations for data center development. This policy has attracted huge investor interest. For example, Google, Amazon, Tencent, and Microsoft have built and operated their data centers in Indonesia.
I.C.T. infrastructure in Indonesia has also improved significantly. They are starting from the fiber optic cable connection that connects Indonesia with Singapore and the United States. With the availability of world-class infrastructure, several real-estate data center investors have invested in Batam, Jakarta, Bekasi and Surabaya, and Bali.
The move is part of a larger effort to promote green technology throughout the country. The regulation also encourages companies to operate more efficiently and to implement strict security measures. As with other similar initiatives, this regulation is intended to ensure that data centers do not create too much waste or consume too much energy.
This is great news for businesses that depend on data centers—especially those looking to reduce their environmental footprint—and consumers who want to use clean energy. This regulation will likely influence other countries with similar goals for sustainable development and boost Indonesia’s position as an international tech hub.
Provision of Clean Energy
In addition, the Indonesian government has provided electricity from energy sources other than coal, such as:
- The power source is gas which reduces carbon emissions by up to 50%.
- The electricity source is geothermal, which reduces carbon emissions by up to 75%.
The Indonesian government is also building power plants from solar power, hydroelectricity, and wind turbines throughout Indonesia. The availability of cleaner energy will make all data centers in Indonesia greener.
Indonesia has a lot of natural wealth. The Indonesian government recently announced that the State Electricity Company is experiencing a surplus in electricity supply while other countries are experiencing an energy crisis. To create balance, companies in Europe and the United States can invest in Indonesia. They must do this immediately to get out of the economic crisis with the concept of win-win solutions.
Data Center Investment in Indonesia
Green data centers are more than just a good idea. In the past, they were relegated to the realm of idealistic startups, who didn’t have a business model but wanted to be environmentally sustainable. However, in recent years, there’s been an increase in data center users and the pressure on existing data centers to expand and become more resilient.
This has led to many innovative ideas being explored by big companies, with many finding ways to save money by looking at sustainability as an opportunity rather than something that costs more.
The newest idea comes from Indonesia, where the government mandates that new data centers must be built using locally-sourced materials and power. It won’t affect the majority of data centers—most already use local resources because they can get them cheaper than imported options.
However, it will make it more expensive for companies basing their operations in Indonesia but still importing everything they need from other countries.
Indonesia has more than 210 million internet users out of a total population of 270 million. This condition has driven the need for data centers in Indonesia for the past five years. Several data center market researchers unanimously stated that investment in the data center industry in Indonesia is the most attractive investment until 2027.
Indonesia is one of the APAC region’s most promising markets for data center investment. An investment in one of these facilities will benefit any investor willing to take on this risk due to Indonesia’s high potential for growth. Jakarta lies at the heart of Southeast Asia and possesses a large pool of highly skilled labor that can be employed at reasonable rates.
How to Achieve Sustainable Data Centers in Indonesia
From an investor’s point of view, it is imperative to find a local partner who is experienced not only in building a data center but also has experience in operating a data center.
To develop a sustainable data center in Indonesia, we first have to understand why data centers still need to be the sustainable solution they could be. Because data centers require so many resources to build and run, including:
- energy sources,
- cooling equipment, and
- server space.
Many businesses see them as a detriment rather than part of the solution. While some companies see an opportunity to reduce their carbon footprint by expanding or building new data centers, others have begun pulling out of the market entirely.
The following are several factors that investors need to consider to build sustainable data centers in Indonesia.
Proximity to users has become more critical in today’s digital era. Network latency will decrease. Thus the need for electricity for data communication will also decrease. In addition, many data center tenants are large companies. They will look for data centers close to their office locations and where many of their application users are located to maintain user experience.
Availability of cleaner energy
In Jakarta, currently, there is a large-scale electricity network that comes from natural gas. It means that data centers in Jakarta can reduce their carbon footprint by up to 50%.
Environmentally friendly design and building
Remember, sustainable data centers will eventually use renewable energy, which requires room for a sizeable battery in addition to space for solar panels and wind turbines.
Data center airflow is also essential regarding employee health and reducing the need for electricity for cooling in data centers. Several techniques for data center cooling are available and can reduce data center energy requirements by up to 40%.
More efficient technology and infrastructure
Datacenter investors must ensure that the data center they invest in uses efficient and environmentally friendly technology and infrastructure. The use of technology to reduce carbon emissions is increasingly becoming important, especially for data centers that still use diesel generators.
Datacenter providers should design water flow for server rooms and generators as efficiently as possible. An environmentally friendly data center also has less waste.
Use of energy and environmental monitoring
A green data center should monitor their power usage effectiveness (PUE) and maintain it below 1.5. Many software is available to monitor data center energy usage and the resulting carbon footprint.
GreenexDC Project in Jakarta
In early 2023, GreenexDC will start the first green data center development project in South Jakarta, with a total capacity of 12 M.W. in the first phase. Furthermore, we will build in five other locations in Jakarta, where the land is already available and we have acquired it.
Completing these new green data centers will create new opportunities for foreign and local businesses that want to expand their operations in Indonesia or gain access to its growing middle-class market.
GreenexDC is targeting companies in Indonesia to become data center tenants and companies in Singapore, the United States, and Europe. The energy crisis in Europe brings concern. By locating data centers in Indonesia, companies in Europe will no longer experience increases in colocation costs. To a large extent, this will lower the inflation rate in Europe.
GreenexDC is not only concerned with efficiency and the environment, but we also have a concern for global economic balance. Therefore, it is perfect to be able to contact us from now on to discuss relocating your data center to Indonesia.
Fyi, One of the commissioners of GreenexDC is the chairman of the Indonesian Data Center Organizer Association, who was previously the C.E.O. in a data center in Indonesia that has been listed on the stock exchange.
As part of a program to promote the sustainable development of information and communication technologies (I.C.T.), the government of Indonesia has recently released a regulation that prioritizes the use of renewable energy for all data centers operating in the country.
The regulation encourages the use of clean energy by setting a target that renewable energy must account for at least 5% of total electricity consumption by 2019 and at least 10% by 2024.
The main target is to reduce carbon emissions by 50% in 2030, up to zero emissions in 2050. The Indonesian government has kept the commitments made during the G-20 and COP-27. Currently, the Indonesian government is offering cooperation to European investors to invest in Indonesia, especially in the renewable energy sector.
Many government policies still make it easier for investors to invest and set up data centers in Indonesia. You can contact us to discuss this.
Read more: Why Developing Green Data Centers in Indonesia is Much Easier.