PGE studies geothermal-powered green data center development

By Romel S. Gurky

PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) is studying opportunities to develop Indonesia’s first green data center powered by geothermal energy, as rising digitalisation drives demand for low-emission electricity sources.

The state-owned geothermal firm said on Friday it has entered into a strategic collaboration with the Indonesia Data Center Provider Organization (IDPRO) and the Faculty of Engineering at Universitas Indonesia to prepare the technical and commercial groundwork for the project. The cooperation will form the basis for a development roadmap before moving into the implementation stage.

PGE Director of Exploration and Development Edwil Suzandi said the initiative is aimed at opening new opportunities for low-carbon digital industries in Indonesia.

Indonesia’s rapid digital transformation is fuelling demand for data centers, supported by more than 212 million internet users, according to the Ministry of Communication and Digital Affairs. Data center capacity nationwide is projected to grow sharply over the next five years.

“Based on projections of industrial electricity consumption growth, nearly 26% is driven by data center expansion,” Edwil said in a statement. He added that national data center capacity is expected to rise from about 520 megawatts in 2025 to 1.8 gigawatts by 2030.

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The trend presents an opportunity for PGE to play a larger role in supplying clean energy to the digital sector, he said, ensuring that digital growth is aligned with sustainability goals.

IDPRO Chairman Hendra Suryakusuma said data centers are a critical component of Indonesia’s digital infrastructure and must be supported by reliable and sustainable energy sources.

“Using geothermal energy for data centers addresses two key challenges at once: long-term energy security and carbon emission reductions,” Hendra said, adding that cross-sector partnerships are essential to building a globally competitive digital ecosystem.

Vice Dean for Resources, Ventures and General Administration at Universitas Indonesia’s Faculty of Engineering, Dalhar Susanto, said the initiative also creates opportunities to strengthen applied research and technology development in both the energy and digital infrastructure sectors.

PGE said geothermal-based data centers could deliver efficient, reliable and low-emission digital infrastructure while enhancing Indonesia’s competitiveness in the global digital economy.

The company currently manages 15 geothermal working areas with a total installed capacity of 1,932 megawatts, including 727 MW operated directly by PGE and 1,205 MW under joint operation contract schemes. The capacity accounts for around 70% of Indonesia’s total installed geothermal capacity and has the potential to cut carbon dioxide emissions by about 10 million tonnes per year.

Editing by Reiner Simanjuntak