Innovation Day Batam 2025 Showcases Indonesia’s Momentum Toward a Sustainable, AI-Driven Future

As Southeast Asia’s digital economy surges forward, Indonesia is emerging as a pivotal hub for data center investment and innovation. With a national agenda centered on artificial intelligence (AI) readiness, digital transformation, and sustainable development, the country has become a key destination for global digital infrastructure players. Batam, in particular, is rapidly evolving into a strategic location, thanks to government incentives under its Special Economic Zone (SEZ) and close proximity to regional digital markets like Singapore.

This momentum was showcased during Schneider Electric’s Innovation Day Batam 2025, an industry convergence that brought together leaders from government institutions, industry associations, and digital infrastructure companies to address Indonesia’s readiness for AI-powered growth. Speakers included Imam Soejoedi, Expert Staff for Macroeconomic Affairs at the Ministry of Investment (BKPM), and Hendra Suryakusuma, Chairman of the Indonesia Data Center Provider Organization (IDPRO), who shared insights on Indonesia’s national investment climate and the evolving role of data centers in driving economic resilience.

Growing Demand, Sustainable Infrastructure
Indonesia’s data center market is experiencing unprecedented growth, backed by surging internet consumption, digital services, and government policies supporting localized data sovereignty. According to the e-Conomy SEA Report 2024, the country ranks second in Southeast Asia in current data center capacity (202 MW) and is expected to expand by 268% in the coming years.

To meet this demand, operators are focusing on AI-capable, high-density, and energy-efficient infrastructure that aligns with both technological and environmental imperatives. One of the latest data center initiatives in Batam comes from BW Digital, a key innovator in digital infrastructure headquartered in Singapore. BW Digital is now making its first foray into data center development in Indonesia, selecting Batam as the launchpad for its digital infrastructure ambitions. In a major move, BW Digital has entered a strategic technology partnership with Schneider Electric. This collaboration will deliver an AI-ready, high-density, and power-efficient data center facility in Batam—leveraging an extensive Schneider Electric solution.

The Schneider-BW Digital partnership will directly support Indonesia’s Digital Indonesia Vision 2045 and National AI Strategy, aiming to equip the country with the compute power necessary for large language models (LLMs), real-time analytics, and AI-driven industrial applications.