Green Data Center in Indonesia has tremendous prospects. The green data center (GDC) construction has shown investors and business people that the world’s future is green technology. This article will discuss the development of green data centers in Indonesia, which has attracted much attention from investors worldwide.
Green Data Center in Indonesia
Indonesia is one of the biggest markets in the world. With a population of 270 million in 2023, they have 220 million internet users. The increase in internet users and usage in Indonesia is one of the factors that has led to the growth of data centers in Indonesia.
The data center is one industry that consumes enormous energy and contributes 732 million tonnes of carbon emissions globally. Reducing carbon emissions has become a priority for all data center providers in Indonesia, especially after IDPRO – an Association of Data Center Operators in Indonesia – issued a white paper on green data centers in Indonesia.
The Indonesian government is committed to reducing carbon emissions. In fact, in 2022 yesterday, Indonesia succeeded in reducing carbon emissions and getting carbon credits because of this success. In addition, the Indonesian government also provides convenience and policies that are very “pampering” for environmentally friendly data center investors.
Several tech giants such as Google, Microsoft, Amazon, and Equinix have been present in Indonesia and operate data centers in Jakarta and its surroundings. For investors, Indonesia is a desirable investment alternative for several reasons.
Why are investors interested in investing in Green Data Centers in Indonesia?
Investing in green data centers is the new trend today. Many countries are looking for a way to reduce the cost of running data centers, and green data centers are the answer. There are many reasons why investors are interested in investing in green data centers in Indonesia, and here are some of them:
- The country is growing rapidly and has a growing economy. As a result, there is an increasing demand for IT infrastructure that can store all the information generated by the massive population. Data centers can provide this infrastructure because they are designed to store information efficiently.
- Green data centers will utilize renewable energy instead of wasteful energy sources such as coal or oil. Their use will make it possible to increase their efficiency while at the same time reducing their carbon footprint. The ability to minimize power consumption without compromising performance is one of the reasons why investors are interested in investing in green data centers in Indonesia.
- The national government is working hard to promote the development of green data centers in Indonesia. The government offers various incentives to attract investors to build green data centers in Indonesia.
- The strategic location of Indonesia makes it a possible hub for connecting Australia, India, China, and Japan. Several submarine cable projects are planned to connect these countries through Indonesian territory.
- It is proximity to Malaysia and Singapore also makes this region strategically crucial for global business.
- The availability of a cheap labor force attracts investors to set up their own green data centers in Indonesia.
European Energy Crisis
The energy crisis in Europe is becoming increasingly problematic. Many sources report that this winter will bring the most fantastic energy crunch to the area, with drastic measures already being taken to prevent widespread blackouts. Even though the problem seems to be centered on supply and not demand, it is still hurting the economy in general, as many businesses are finding themselves unable to function.
Europe has fallen behind on its energy needs and relied on importing electricity from outside sources such as Russia and Turkey. The energy crisis of 2022 resulted from the unsustainable demand for energy that had been growing over the last decade.
In some cases, companies have even been forced to move their data centers overseas because of price increases and shortfalls in supply. This has been particularly common among European companies, which face high operation costs while still trying to compete with American businesses that enjoy cheaper electricity rates. But there is hope for those who feel they may have no other option but to relocate outside of the country: Indonesia has unique advantages for hosting data centers that other countries can’t offer.
The energy crisis in Europe has been forcing companies to move their data centers to other regions, and one of the best choices for them is Indonesia. The country has a very high-quality power supply, and it’s a good choice for countries with increased energy demand.
The number of big data centers in Indonesia will increase by next year. Now there are more than 44 data center buildings, and it’s also predicted that by 2023, the number of data centers will double due to the rapid growth of the IT industry in our country.
Read also: ESG Strategy Should Consider Using a Green Data Center
Conclusion
Green data centers are an emerging trend in managing large-scale computing centers. This is primarily thanks to the rising concern over how much energy large-scale computing facilities use, which is estimated to be about two percent of all electricity used and is only increasing.
Indonesia’s capital city, Jakarta, is the most populated metropolis in Southeast Asia. Many high-tech companies have relocated their headquarters to the area because of its cheap land and skilled workforce. The influx of high-tech companies has created a demand for data centers in Jakarta.
The green data center movement is growing rapidly and will continue as more people become aware of how much energy is used. The concept itself is still new enough that there has yet to be any industry consensus on what qualifies as a green data center. However, it generally involves using renewable energy, such as solar panels, wind turbines, and geothermal heating, to power the facility.
Data centers in Indonesia have started to switch energy conversion from coal to LNG, which can reduce carbon emission footprint by up to 50%. In addition, large data centers like Amazon have started their 120-megawatt solar farm projects. What Amazon is doing should be followed by all data center providers in Indonesia because to achieve 0% carbon emissions, you must use 100% renewable energy, which takes dozens of years.
Read next: Developing Proper Data Center Infrastructure Management