Toward a Green Digital Transformation: Energy Sustainability and Data Sovereignty in Indonesia

Jakarta, INTI - In the race to develop cutting-edge AI technologies, Indonesia faces a dual challenge: supporting the rapid growth of its data center industry while addressing critical concerns related to energy sustainability and data sovereignty. According to the Indonesia Data Center Providers Organization (IDPRO):

"Collaboration among stakeholders—government, industry, and academia—is essential for building a resilient and sustainable digital future for Indonesia."

This article explores the path forward for Indonesia, focusing on the urgent need for renewable energy adoption and the critical role of data sovereignty in an AI-driven world.

The Energy Imperative: Powering AI Sustainably

Data centers are among the most energy-intensive infrastructures, requiring substantial electricity to maintain operations. The growing adoption of AI technologies is expected to push these energy demands even higher.

Renewable Energy: The Key to Sustainability

Indonesia has committed to achieving net-zero emissions by 2060, a goal that hinges on transitioning from coal to renewable energy sources. While the country has abundant natural resources, including solar and geothermal energy, scaling these solutions remains a challenge.

IDPRO’s Strategy for a Green Transition

1. Phasing Out Coal Dependency
   Indonesia plans to begin decommissioning coal-fired power plants by 2030. IDPRO advocates for accelerating this timeline to support the green transformation of the data center industry.
2. Investing in Renewable Energy Projects
   The government’s target of achieving 23% renewable energy in the national energy mix by 2025 is a promising step. Large-scale projects like solar farms and wind energy installations can provide sustainable power for data centers.
3. Partnering for Progress
   Initiatives like the Just Energy Transition Partnership (JETP) provide international funding and expertise to help Indonesia expand its renewable energy capabilities. IDPRO urges all stakeholders to capitalize on these partnerships to ensure a smoother transition.

Data Sovereignty in the AI Era

As AI technologies become increasingly reliant on large volumes of data, protecting this data is essential for national security and economic independence. Indonesia’s on-shoring data regulations are a key step toward ensuring data sovereignty.

The Benefits of Localized Data Centers

1. Enhancing Cybersecurity
   By storing sensitive information domestically, Indonesia can reduce exposure to cross-border cyber threats. Localized data centers provide better oversight and regulatory compliance.
2. Fostering Domestic Innovation
   A strong local digital ecosystem empowers Indonesian developers to create AI applications tailored to the country’s needs. This can drive innovation in areas such as healthcare, agriculture, and urban development.

Building a Resilient and Sustainable Digital Ecosystem

As Indonesia navigates the challenges of the AI revolution, IDPRO emphasizes that sustainability and sovereignty must remain at the forefront. By investing in renewable energy, modernizing infrastructure, and strengthening local capabilities, Indonesia can lead the way in creating a sustainable and secure digital future.

The integration of renewable energy solutions and the enforcement of data sovereignty regulations will not only support the growth of the AI ecosystem but also ensure that Indonesia remains competitive in the global digital economy.