Future projects may gradually flow to markets perceived as lower-risk in power uncertainty, such as Malaysia or Thailand, unless reliability improvements are quickly made, experts noted.
A store in Padangsidimpuan city, North Sumatra, still has electricity supply from a generator set while others are blanketed in darkness after the Sumatra blackout on May 22, 2026. (kompas.com/Oryza Pasaribu)
The recent total blackout across Sumatra has triggered serious concerns for the data center sector, with industry players calling it a critical “alarm” for investment as the business entirely depends on power reliability.Hendra Suryakusuma, chairman of the Indonesian Data Center Provider Organization (IDPRO), warned that prolonged or repeated blackouts significantly increase risks, especially for facilities without best-practice electrical design and continuity procedures.
He acknowledged that electricity infrastructure remains one of the most decisive factors for data center investment.
“Investors are not just looking at location and incentives, but also grid reliability, supply certainty, voltage quality, connection timelines and transparency of recovery when disruptions take place,” Hendra told The Jakarta Post on Monday.
