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25 min ago 3 min read
State-owned telecommunications company PT Telkom Indonesia and gas distributor PT Perusahaan Gas Negara (PGN) will explore the use of biomethane to power TelkomGroup’s data centres in Indonesia.
Having signed a memorandum of understanding, PGN will provide energy through the use of biomethane derived from palm oil waste in Sumatra.
“This biomethane initiative for data centres opens up new value-added opportunities while supporting the national energy transition,” said Arief Kurnia Risdianto, President Director at PGN.
The majority of Indonesia’s 185 data centres are concentrated near capital city Jakarta, according to Data Center Map.
The country’s drive to decarbonise data centres forms part of PGN’s broader Step Out strategy, which aims to develop low-carbon businesses within the Pertamina Group.
The city-state’s government has positioned biomethane as one of a small number of approved green energy sources under its Green Data Centre Roadmap and its successive calls for applications for new capacity.
Last year, multinational group Unilever became the first company to for industrial use in the Asian country.
Indonesia has five strategic areas for TelkomGroup data centre development – Cikarang, Batam, Serpong, Sentul, and Surabaya – which could be supported by PGN’s energy supply. All are integrated with PGN’s existing gas pipeline network.
Rising electricity demand and long grid waits are pushing data centres to explore biomethane as a solution that offers dispatchable, storable renewable power.
Global electricity consumption by data centres is on track to more than double between 2024 and 2030, reaching roughly 945 terawatt hours – a level of demand comparable to the entire output of Japan.
In tech-intensive markets such as Virginia in the US, data centres already account for more than a quarter of total power consumption. The International Energy Agency identifies AI as the primary driver.
Earlier this year, Ireland-based Pure Data Centres Group announced that it had achieved 100% decarbonisation of natural gas consumption during 2025 through Europe’s first successful biomethane proof of concept.
Indonesia – gasworld Pulse Pro report
Indonesia is rapidly becoming South East Asia’s premier data centre hub, with a market expected to grow from $2.81bn in 2025 to $6.08bn by 2031.
To find out more, access gasworld’s Indonesia Pulse Pro report .
