Can Indonesia Train Enough Workers For Its Data Centre Boom? — CNA Correspondent

[00:00:00] Speaker 1: Indonesia's data center industry is expanding rapidly, driven by a growing digital economy and the rise of artificial intelligence or AI. About 200 data centers of varying sizes are now operating across the country. CNA Correspondent examines how Indonesia is developing talent, ensuring sustainability and positioning itself as a regional data center hub. [00:00:25] Speaker 2: This is Microsoft's newest data center currently under construction at the Karawang International Industrial City in West Java. The 48-megawatt facility is expected to begin operations later this year. It's part of Microsoft's $1.7 billion investment in Indonesia as demand for data centers continues to grow. When an online purchase is made, a video is streamed, or a question is asked of AI, the request is sent to a data center. Inside, thousands of powerful computers known as servers work together to receive, process, and respond to these requests. They search through vast amounts of data and send the results back to the user's device in seconds. Without data centers, many everyday digital services simply would not function. [00:01:27] Speaker 3: So as we think about where we build these data centers, it's really important that we design for long term. And so they will grow over time as more and more customers are using them and using them for innovative new services as well. So we have additional tranches of land in the same campus here that will build future data centers. It will eventually expand this data center region to be hundreds of megawatts in power and in capacity. [00:01:56] Speaker 2: Microsoft plans to build three more facilities in the Karawang cluster in the coming years. Once completed, the site will house five data centers forming a major regional hub. Indonesia is able to attract hyperscalers due to its position as Southeast Asia's largest digital economy, along with ample land and access to power. The government is also taking an active role in advancing its ambition to establish the country as a regional data center hub. [00:02:29] Speaker 4: That is something that is very important for the government to analyze about the future of the regulations that we are doing. Since data center is a part of our priority in attracting investment coming to Indonesia, this should be then given a kind of very dedicated treatment, be it in the regulations, be it in intense incentives and then also in the investment climate for them. [00:02:56] Speaker 2: Data center operators say regulatory certainty will be key to sustaining growth. [00:03:02] Speaker 5: We build this infrastructure that will last for decades. So there will be new type of services that we're bringing. We will be expanding as well. And all of those require consistent regulations. All of those require consistent policies that will also be sustainable when we are continuing to invest, when we are operating these data centers. [00:03:29] Speaker 2: About 40 kilometers away from Karawang, Digital Edge operates two strategically located data centers in Central Jakarta. Its newest facility, Edge 2, was launched in 2024 and is currently the largest data center in the heart of the capital. The site has a 23 megawatt power capacity and can house more than 3,400 server ranks. This is the last line of defense for the data center, a backup generator that kicks in during a power outage. Each generator has a capacity of 3.5 megawatts. Together, all 17 units can deliver up to 23 megawatts of power for up to 30 hours. Digital Edge operates data centers across seven countries in Asia Pacific and Indonesia is its largest market by both investment value and power capacity. Its upcoming CGK campus in Bekasi, West Java is designed for 500 megawatts of capacity, the company's biggest infrastructure commitment to date. The Singapore headquartered digital infrastructure platform is urging authorities to designate more data center clusters as Special Economic Zones or SEZs which offer significant fiscal and non-fiscal incentives. [00:04:54] Speaker 6: The more government can designate a place for SEZ, especially in areas where there's plenty of land, water, power, and connectivity. It will be very helpful to attract more data center investments. And last but not least, streamlining the permits. You know, giving permits to build data center so that we can get, you know, faster approvals to build the data centers. [00:05:25] Speaker 2: Observer say Indonesia is poised to become a key data center player in the region. [00:05:32] Speaker 7: In Jakarta, what is anchoring it would be the domestic demand. Now, it definitely can be the hub position because you have the capacity and from that you can grow. The figure that IDC do track close to about 900 megawatts in 2023 and it is expected to grow at least double to triple in the next five years from 2023. So by 2028, we are expecting close to 2,000 megawatts. [00:06:00] Speaker 2: Real Estate and Investment Management Company, JLL, says that while land remains available in Greater Jakarta for data center development, some areas are becoming constrained due to high demand. Sites must also meet strict environmental criteria, including being located in areas with low flood risk and where the land is expected to remain safe from flooding for up to 50 years. In addition, operators must take into account potential impact on local communities. [00:06:34] Speaker 8: Developers have already making sure that all the process, the permitting, and all the procedures have been complied by the local as well as the Indonesian government regulations so making sure there is no disturbance to the community. Each data center providers have their different requirements but from our experience, it is starting from around 1 km to 5 km away from the community. [00:07:06] Speaker 2: If data is the new oil, then data centers are the refineries of the digital age. Indonesia's ambition to become a regional hub will hinge on whether these corridors can keep the economy humming and fuel Southeast Asia's next phase of growth. Next, CNA correspondent looks at Indonesia's push to build a greener data center industry. Data centers are resource-hungry facilities fueled by the AI boom and the global shift towards cloud computing. We require a constant 24/7 supply of electricity and water and must operate at near 100% uptime to prevent service disruptions, data loss, and major financial losses. As demand grows, operators are also stepping up investments in renewable energy to power their facilities. [00:08:21] Speaker 9: At Microsoft, we don't run power plants but we work very collaboratively with the utility providers so we're very excited here in Indonesia to be working with PLN who will ensure - it's a 10-year contract so we're invested in the future and it will provide 200 megawatts of solar energy onto the grid here and that gives us the opportunity then to use more green power from that same grid. [00:08:48] Speaker 2: Roughly half of this power goes to IT equipment with much of the rest used for cooling systems. Data centers generate enormous heat as they process information. To keep thousands of servers from overheating, they rely on water-based cooling systems. Microsoft pledged to become water-positive by 2030 meaning it aims to return more water to the environment than it uses. Co-location provider Digital Edge uses geothermal energy to power its two data centers in Jakarta and plans to extend that commitment to its upcoming 500 megawatt campus in Bekasi. The new facility will also deploy directed chip cooling to support AI workloads. [00:09:36] Speaker 6: For AI workloads, it will require a GPU, you know, a GPU chips and GPU chips would require a very high density, IT load density meaning that it's very hot, you know, it has to be cooled using, you know, not the traditional air-cool technology or air-cooled system but we are now using direct-to-chip liquid cooling which means that the liquid will directly cool the servers. It can be of, you know, different type of liquid can be de-ionized water or, you know, some call it PG-25. Yeah, but this is not just the water we take but it's a, it's a, it's a special liquid, you know, with chemicals in order to cool the servers. Conventional air-cooling [00:10:25] Speaker 2: relies on air-conditioning systems to expel hot air and circulate cool air through the data hall. Direct-to-chip liquid cooling, however, is a more efficient way to remove heat from servers. It uses a closed-loop system that circulates cooling liquid directly over the processing chips inside the servers. The liquid absorbs the heat at the source, carries it away and is then cooled before being recirculated through the system. Cooling towers form the final stage of this process releasing heat from the facility into the outside environment. Typically located on rooftops, they are a standard feature to manage the immense heat generated by servers. Efforts to improve resource efficiency and reduce carbon emissions will soon be measured under a new Sustainability Index. [00:11:20] Speaker 10: We are going to be releasing a new rating system talking about sustainability and also energy efficiency adopting the green concept. And the push for the new standards is because investors, it's because operators, even the users right now demands to see this happening happening in the daily practice, in the daily discipline of the data center. I think it's good news for everyone. A lot of the international players are already adopting their own standards. The association is trying to bring this into a national wide coverage so every data center can actually showcase that okay, [00:12:08] Speaker ?: I'm meeting [00:12:08] Speaker 10: this criteria criteria and I'm having this rating which will help them not only to promote but also to be seen by customers by end users and by the stakeholders including governments how they are performing. [00:12:23] Speaker 2: Data center operators in Indonesia say such a green rating system is needed to guide the industry. [00:12:30] Speaker 5: I believe sustainability needs to be measured and internally in Microsoft we are also measuring it and this is also something that our customers also prefer you know, being able to use and the services of data center that also have green energy and renewable energy supply. In fact, we just actually have a rich milestone whereby 100% of our electricity consumption is actually matched with the renewable energy support from our our partners and the ecosystem as well. [00:13:02] Speaker 2: Observers say the green rating system could eventually be linked to tax incentives but would need national implementation and the government support. In order [00:13:13] Speaker 7: for the DC operator to want to do that because it comes at a cost also you need to have either the regulation in place to force them or you have to have a favorable policy to encourage them. So, you just need both sides to just push them along. That is something that even if it's not a problem that you see now it will come to be a problem in the near future. [00:13:40] Speaker 2: The race to build more data centers is heating up with no sign of slowing down. How well operators balance rising demand with responsible use of power and water could shape not just the industry's [00:13:57] Speaker ?: future [00:13:57] Speaker 2: but Indonesia's broader digital ambitions. ambitions. Next, CNA correspondent looks at how Indonesia is preparing its talent pool to be data center ready. A career in data centers was once unfamiliar territory for ASCA but he was encouraged to consider it as a fast-growing industry driving global economic growth and technological innovation. In 2024, the 19-year-old decided to take a leap of faith and enrolled at the Nusantara Data Center Academy. He was part of its first intake of trainees and at the start, he struggled with self-doubt. [00:14:52] Speaker ?: It was a part of its first intake of trainees [00:14:52] Speaker 11: and at the start, he struggled with self-doubt. It was a part of its first intake of trainees and at the start, he struggled with self-doubt. It was a part of its first intake of trainees and at the start, he struggled with self-doubt. It was a part of its first intake of trainees and at the start, he struggled with self-doubt. It was a part of its first intake of trainees and at the start, he struggled with self-doubt. It was a part of its first I was a part of its first intake of trainees and at the start, he struggled with self-doubt. The Nusantara Data Center Academy [00:15:20] Speaker 2: was established in 2022 to help address a critical talent shortage in the fast-growing industry. It has a structured program designed for young talents that includes a six-month classroom training in data center management. This is followed by six months of on-the-job training [00:15:39] Speaker 12: and eventual work placement. We are not only giving theory, but we are giving real experience because we are, other trainers, we also, as a person of industry data centers, we are giving our knowledge to them. In our teaching, for example, we are teaching about switchboard, we bring a sample switchboard, we show them, switchboard is like this and they are trying to operate. [00:16:11] Speaker 2: The Nusantara Data Center Academy adopts the Pentahilix model bringing together five key groups to drive innovation, solve complex challenges and support sustainable growth. The Academy partners with schools and polytechnics to offer tailored programs, internships and placements that prepare talent for the industry. for the industry. It collaborates with global academies to provide specialized certifications in data center design, sustainability and safety. A vibrant ecosystem is built through webinars, gatherings and industry tours creating opportunities for professionals, students and enthusiasts to connect and grow. The Academy also engages the government which plays a key role as a regulator and policymaker providing legal frameworks and support. Insights and discussions on data center innovation are shared through media partnerships, events and podcasts. The Nusantara Data Center Academy is also equipped with this dedicated podcast studio. The podcast Nusantara plays a key role in community outreach offering in-depth discussions on the technical and business aspects of Indonesia's growing digital landscape. Analysts say the multidisciplinary nature of data centers spanning IT, engineering and facilities management poses a major challenge for workforce development. [00:17:45] Speaker 7: especially if you are looking into data center operations specialists and AI operations specialists. These are two talent groups that is not readily being taught in the school. So even they are from the science and engineering, they graduate, they are not readily in this space. So you do need tertiary, post-graduation. You need to push for training in that aspect. The policy within Indonesia itself need to push for this talent and the ecosystem development. That would drive the growth of the ecosystem. [00:18:18] Speaker 2: While specialized academies like the Nusantara Data Center Academy are beginning to bridge that gap, obstacles remain. The closed nature of the data center industry is a primary driver of the global talent shortage. As critical infrastructure, data centers operate under strict security protocols, limiting access and knowledge sharing. [00:18:43] Speaker 10: The data center industry in Southeast Asia is growing so rapidly, but the talent is not. the talent is not. And I don't see that we are going to be able to overcome the condition unless the operators start to openly collaborate with training institutions. The industry itself is a very close industry. People don't want to share. People are not allowed to share about what they do, about, you know, where is the location of the data center, and et cetera. And this creates a big gap in the industry itself. The data center industry who needs the talent but also from the supply side, from the education sector. [00:19:34] Speaker 2: At the entrance of this data center, there's no company logo or name, a sign of how closed and security conscious the industry can be. Co-location provider Digital Edge recognizes the need to balance confidentiality with collaboration. Since 2024, it has partnered with the Nusantara Data Center Academy, hiring eight of its graduates. Our partnership [00:20:03] Speaker 6: with Nusantara DC Academy, you know, is very beneficial and very, very good to the industry because it provides, you know, the on-the-job training. So, you know, the students can learn, you know, from us, you know, how we operate and we manage our data centers. And, you know, in time, then they will, you know, those talents can be absorbed into the market. and we are also very open to attract talents from other industries who are coming into this industry because we need more engineers, we need more builders, we need more operation team, you know, to be able to run the data centers. [00:20:45] Speaker 2: Technology giant Microsoft is also supporting Indonesia's digital workforce development, helping to build a local AI-ready ecosystem through knowledge transfer. The company uses its global training curriculum adapted to suit Indonesia's local context. [00:21:03] Speaker 5: We are aiming across the board in Indonesia with the program what we call Elevate. So, this is a scaling, AI scaling program for the nation. Last year, we actually just completed 1.1 million of talent, AI-skilled, together with the government agencies. [00:21:26] Speaker 2: As Indonesia's data center industry expands, its success will depend not just on infrastructure, but on a skilled workforce. For Asgar, now working as a data center technician, the journey is just beginning. He plans to continue his studies in mechatronics and hopes to carry this path forward, inspiring the next generation to power Indonesia's digital transformation. The next generation is a global network. [00:21:54] Speaker ?: The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network. The next generation is a global network.