Chinese-Backed AI Data Center Planned for Indonesia’s Batam Island

A Chinese-backed artificial intelligence data center project is set to be developed on Indonesia’s Batam Island, in a potential boost to the country’s ambitions to become a regional digital infrastructure hub.

The Batam Indonesia Free Zone Authority said the planned investment could reach $5 billion, or about 88 trillion rupiah. The project will be located in the Nongsa area of Batam, near Mata Ikan Bay, and is expected to cover around 30 hectares.

The development will be led locally by Indonesia’s Equator Gate System, with full backing from China’s Range Intelligent Computing Technology. It would mark the Chinese company’s first overseas data center base.

Batam officials described the project as a major step in the island’s shift from a traditional manufacturing center toward higher-value technology and digital services. Local authorities said the AI data center could help attract related industries, including cloud computing, semiconductors and artificial intelligence services.

Power supply will be a key issue for the project. The Batam authority said it had facilitated a power purchase agreement between PLN Batam, the local unit of Indonesia’s state electricity company, and the project developer to secure stable electricity for the facility. Officials also said they would provide a fast-track approval process to speed up administrative procedures and construction.

Once operational, the data center is expected to create 700 to 800 jobs for digital technology professionals. Local authorities also plan to work with universities to develop talent pipelines for the project.

The investment comes as Southeast Asian countries compete to attract data center and AI infrastructure projects, driven by rising demand for cloud services, digital storage and high-performance computing. Batam’s proximity to Singapore, existing industrial base and special economic status have made it an increasingly attractive location for digital infrastructure investors.

For Indonesia, the project fits into a broader effort to move beyond resource extraction and basic manufacturing toward more advanced industrial and technology sectors. If completed, the Batam data center could strengthen the island’s role in Southeast Asia’s emerging AI and cloud infrastructure landscape.