Jakarta – In a video posted to Instagram on Wednesday, West Java Governor Dedi Mulyadi announced that construction of a new artificial intelligence (AI) data‑centre operated by Singapore‑based BDx Data Centers must stop until the project obtains all required permits and completes its environmental impact assessment.
Permit gap, not environmental violation
Governor Dedi emphasized that the halt is not due to any breach of environmental rules. “The project is being halted not because it violates environmental rules. It’s being halted because the permits have not yet been issued,” he said in a separate YouTube video posted on Tuesday.
BDx broke ground on the 640‑megawatt AI data‑centre campus in Jatiluhur, West Java, on September 22. The company, which provides data‑centre services for cloud providers and large enterprises across Asia, has not responded to requests for comment on the governor’s directive, and it remains unclear whether construction has already ceased.
Balancing investment and sustainability
Governor Dedi reiterated his support for investment in West Java, provided projects are environmentally friendly. He noted that some data‑centres have been linked to water shortages, a concern that resonates with broader regional debates about the sustainability of large‑scale digital infrastructure.
Across Southeast Asia, governments are grappling with the rapid expansion of data‑centres. Critics point to rising electricity costs, strained water supplies, limited land availability, and the impact on local communities. United Nations researchers warned in June that data‑centres could consume twice as much power and water by 2030 as they scale to meet surging AI demand.
Indonesia’s growing data‑centre market
Indonesia’s data‑centre market was valued at $2.81 billion in 2025 and is projected to reach $6.08 billion by 2031, according to a January report from research firm Research and Markets. The sector’s growth underscores the importance of clear regulatory frameworks that protect resources while encouraging technological advancement.
Opposition to new data‑centre projects has also surfaced in neighboring Malaysia, the region’s fastest‑growing data‑centre market, highlighting a regional trend toward tighter scrutiny of digital‑infrastructure development.
What’s next for the Jatiluhur project?
BDx will need to secure the outstanding permits and satisfy the environmental impact assessment requirements before construction can resume. Governor Dedi’s stance signals that West Java will enforce compliance to safeguard water resources and ensure that future investments align with the province’s sustainability goals.
Stakeholders and local residents will be watching closely as the permitting process unfolds, balancing the promise of high‑tech jobs and economic growth with the imperative to protect the province’s natural resources.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
