Batam (Indonesia) (AFP) – Cooking or washing became difficult when running water was cut off on Batam, an Indonesian island where data centers are mushrooming to fuel the global boom in artificial intelligence (AI).

Published on: 08/11/2026 - 05:14

The area, close to Singapore, has suffered a "long drought" due to low rainfall, the local water distribution operator told AFP, while an intense El Niño cycle aggravates the situation.

As in other countries, anger has turned towards "data centers", which are growing like mushrooms in the region. In these warehouse-like facilities that continuously run applications and artificial intelligence tools, water is used to cool servers.

Resentment is growing in Indonesia and Malaysia, particularly in areas bordering Singapore, seen as prime sites for new technology infrastructure in Southeast Asia.

At the beginning, we said to ourselves "Thank God the industry is coming" to Batam, Juniardi Adinda Sembiring Gurukinayan, a 54-year-old trader, told AFP.

But serious water cuts in certain areas of Batam meant that "sometimes I did without a shower", he adds.

At the height of the crisis, dozens of local residents demonstrated in front of Nongsa Digital Park, a new complex of data centers and other infrastructure designated as a special economic zone.

The level of a reservoir near the technology park was low and the supply system was disrupted by a power outage, said Ginda Alamsyah, a spokeswoman for the utility.

In late September, authorities told developers they needed to build seawater desalination plants for cooling, to avoid putting too much strain on local resources.

Data center operators in the complex include BW Digital, DayOne and Princeton Digital Group, all of which are headquartered in Singapore.

Another owner, Hong Kong-based Gaw Capital Partners, said it was "aware of the distress and frustration expressed by residents of Nongsa and surrounding communities in Batam".

To ensure sustainable operations, “our data centers must implement a combination of cutting-edge engineering, efficient architectural designs and renewable energy sourcing,” he added.

This includes the use of so-called “closed circuit” water systems, which reuse resources and therefore require less fresh liquid.

“Smelly” and “yellowish”

In the nearby coastal village of Mata Ikan, residents had to use seawater to wash themselves after relieving themselves, said Rahmat, a 52-year-old who, like many Indonesians, goes by only one name.

“The water crisis has been going on for a year, but it has gotten worse in the last six months,” says Sulastri, forced to use bottled water to wash the dishes.

"Many of us here run small stands. We used to make ice cubes, but we can't do that anymore," adds the 38-year-old woman.

The authorities did distribute water by tanker trucks, but, according to Sulastri, the water was “smelly” and “yellowish”.

Contacted by AFP, Nongsa Digital Park did not respond.

In October, Amsakar Achmad, mayor of Batam and director of BP Batam, estimated in a local media that the recent water cuts had “not been caused by data centers, by artificial intelligence or by investors entering this sector”, but by “climatic factors”.

Capacity tripled by 2030

Data center capacity in Southeast Asia is expected to triple by 2030 from 2025 levels, boosted by a tenfold increase in the use of AI, according to a KPMG report.

This will put pressure on water resources, but also on electricity networks, which are still heavily dependent on fossil fuels responsible for global warming.

The boom in data center construction in Indonesia and Malaysia began when resource constraints led Singapore to suspend all new projects between 2019 and 2022.

The phenomenon has since intensified, boosting the economies of both countries.

Water supplier ABH supports policies to encourage investment and development in Batam, Ginda said.

But water demand must be managed appropriately, he added, saying ABH was working to increase the capacity of Batam's six reservoirs. Cloud seeding, to cause rain, is another option during periods of drought.

“Filming in Johor

North of Singapore, the Johor region of Malaysia has become “one of the largest emerging AI infrastructure hubs in the world,” according to researcher James Chai of the ISEAS-Yusof Ishak Institute.

Just five years ago, Johor had a data center capacity of 10 megawatts. This number has multiplied by 200 to reach 2.1 gigawatts today, says Mr. Chai.

Johor residents have protested against the adverse effects of the construction work.

“Johor is at a critical turning point,” Mohd Fadhil Md Din of the Technological University of Malaysia told AFP.

Johor "has the potential to become the leading sustainable data center hub in Southeast Asia", provided it carefully manages resources and land use planning, he added.

Pressure from residents

In Kota Damansara, on the outskirts of Kuala Lumpur, land intended for a data center remains empty following local opposition.

The developer withdrew his building permit application in August, after pressure from residents on their MP and a petition which collected more than 9,000 signatures.

Following the withdrawal, Malaysian Human Resources Minister Ramanan Ramakrishnan told local media that he was not opposed to "development" or "investment".

But "for large-scale projects likely to affect the lives of residents, they must have their say."

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© 2026 AFP

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