Singapore’s BDx AI sticks to 2027 target after Indonesia halts work on data centre

JAKARTA – Singapore-based BDx Data Centers is sticking to plans to bring the first phase of its largest data centre campus in Indonesia online in early 2027, despite construction being halted over outstanding environmental and building approvals.BDx, which already operates three data centre sites in Indonesia, confirmed on Oct 3 that construction at the 640MW artificial intelligence data centre campus in Jatiluhur, West Java, had stopped following instructions from West Java Governor Dedi Mulyadi.“At this stage, we continue to target the first phase entering service in early 2027, subject to the completion of these approvals,” the company told The Straits Times.The company added that it was working closely with the authorities to complete the remaining regulatory and permitting requirements, and that the process was “progressing as planned”.The halt came less than two weeks after BDx announced on Sept 22 that it had begun construction of the 640MW AI campus. The 111,000 sq m project, roughly the size of 15 football pitches, is located about 5km from the Jatiluhur reservoir.BDx said then that construction had begun on the first of six planned buildings on the campus. The first building will provide 120MW of IT capacity in phases, with its first contracted phase expected to enter service in early 2027.Dedi inspected the site on Sept 28, when he questioned officials over the two outstanding approvals. The West Java government said he subsequently ordered construction to be halted on Sept 30 until the requirements were completed.He later said he had raised the same issue during an earlier visit on July 28, when the approvals were already being processed, and had told those involved that construction should not proceed until they were issued.These include a mandatory environmental impact assessment, known in Indonesia as an AMDAL, which examines the potential environmental effects of a major development before it can proceed.The other is a PBG, or building approval, which sets out whether a planned building meets technical and administrative requirements.Officials in Purwakarta, the West Java regency where the data centre is located, inspected the site on Oct 1 and found that construction activity had stopped.Water concerns amid rapid expansionThe halt comes as Indonesia’s data centre sector expands rapidly to meet growing demand for cloud computing and AI, bringing greater scrutiny of the industry’s heavy water and electricity use.Indonesia had 204 data centre facilities as at September, the most in South-east Asia, according to industry database DataCenterMap.Coordinating Minister for Economic Affairs Airlangga Hartarto said in July that Indonesia had about 580MW of operational data centre capacity, with investors interested in developing another 1.3GW.The BDx project has itself drawn questions over its planned use of water from the nearby Jatiluhur reservoir, a major source of water for Greater Jakarta and irrigation across West Java.The West Java authorities have said the project’s water needs could eventually reach about 384 litres per second when fully developed. Officials say sufficient water remains within Purwakarta’s allocation, while Dedi has insisted that supplies to residents and farmers must not be disrupted.He has also called for the project’s environmental analysis to be made public and asked a University of Indonesia academic to provide an independent assessment.Dedi, who is known for his active social media presence and frequently documents his activities on YouTube, has also sought to explain his decision publicly.Speaking to reporters in Bandung on Oct 2, the governor blamed the delay on the project’s consultant, saying it had been slow to submit the necessary information, rather than on the Purwakarta authorities.BDx did not respond to ST queries on what type of consultants it had engaged and whether it was reviewing its relationship with the consultant involved.The Jatiluhur project is known as CGK4 in BDx’s naming system. CGK is also the three-letter airport code for Jakarta.BDx said it plans to develop the six-building campus over about three years and has secured 845 megavolt amperes of grid capacity from state electricity company PLN. The company said the campus is designed to support high-density AI computing.BDx said it remained committed to “responsible development that supports Indonesia’s AI and digital infrastructure ambitions”.Hariz Baharudin is Indonesia correspondent at The Straits Times. He has an interest in Indonesia and the wider currents shaping South-east Asia.