Potential of Renewable Energy-Based Data Center Industry to Support National Security

Fri, 31 Jan 2025

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With internet penetration reaching 79.5% of Indonesia’s population, the need for data center services is increasing along with the rapid digital transformation in the government, economy, and public service sectors. The data center industry faces major challenges related to energy consumption and environmental impacts, which require a transition to renewable energy, such as solar, wind, hydro, and geothermal. Indonesia has a competitive advantage in the form of abundant renewable energy resources, global connectivity, and supportive government policies. However, the implementation of green energy-based data centers requires strategic efforts, such as simplifying the licensing process, strengthening renewable energy infrastructure, implementing energy efficiency policies, and incentives for investors. This report examines the potential for developing a renewable energy-based data center industry in Indonesia, which plays a strategic role in supporting national security through the provision of reliable, sustainable, and environmentally friendly digital infrastructure. Strategic recommendations in this report include the application of energy-efficient technology, utilization of Renewable Energy Certificates (RECs), and the development of a power wheeling mechanism to support environmentally friendly data center operations.

Keywords: Data Center, National Security, Renewable Energy, Internet

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