A constant hum fills a Microsoft data center near Jakarta, part of a technology construction surge in Southeast Asia that offers economic potential but also demands resources. Technology giants are investing billions in the region driven by the increasing demand for artificial intelligence among users.
Data centers, essential for storing online data and powering AI tools, are rapidly expanding globally, with Asia experiencing significant growth. AFP recently gained rare access to a Microsoft data center in Indonesia, showcasing the sector’s rapid development.
The data center operates round the clock with technicians ensuring seamless functioning even during holidays. As per a KPMG report, data center capacity in Southeast Asia is expected to triple by 2030 due to a tenfold rise in AI usage.
However, the expansion of data centers in Asia may strain grids reliant on fossil fuels and stress local water resources to prevent servers from overheating.
In Indonesia, the data center houses servers processing AI queries for local users, necessitating efficient cooling systems to manage the heat generated. Singapore was once the data center hub of Southeast Asia but paused developments due to environmental concerns, leading to a surge in centers in neighboring countries.
The data center expansion will escalate power consumption, especially in countries like Indonesia where coal remains a primary energy source. Microsoft’s facilities in Jakarta, part of a substantial investment, require substantial electricity, prompting efforts to transition to renewable energy sources.
Microsoft’s competitors like Amazon, Google, Alibaba, and Tencent also operate data centers in Jakarta, a city facing challenges like sinking due to groundwater extraction. The growing data center industry will strain water resources, necessitating sustainable management practices.
Microsoft aims to reduce water consumption through advanced systems, preparing for future developments in AI technology that will demand more computing power. Balancing technological advancements with environmental sustainability remains a critical challenge for the industry.
