Indonesia Ministers Mandate Environmental Review for Data Centers

Coordinating Minister Agus Harimurti Yudhoyono stated that environmental impacts must be evaluated when building data centers in Indonesia. He noted that these facilities require large amounts of water and raise environmental concerns globally due to high energy and water demand. Minister Meutya Hafid also emphasized that artificial intelligence data center projects must account for energy and water resources.

The requirement links the growth of Indonesia's digital economy and finance sector to resource availability. The ministers stressed that water must be allocated fairly among industry, rice fields, and the population. This regulatory push affects the planning and construction of digital infrastructure projects.