West Java halts data center construction over water impact fears and missing permits
West Java authorities have ordered a halt to construction of a major data center project in Purwakarta regency after the developer began building without securing critical environmental and construction permits, raising concerns about potential impacts on the region's water resources.
Governor Dedi Mulyadi suspended work on the facility developed by Singapore-based BDx Data Centers, located approximately 5 kilometers from Jatiluhur Dam. The dam supplies roughly 80 percent of clean water to Greater Jakarta's 30 million residents and irrigates around 240,000 hectares of rice fields across West Java.
"If the permits are still being processed, then construction should not start yet," Dedi said in a video posted to his Instagram account on Wednesday, addressing a project consultant.
The governor called for expedited processing of outstanding permits to provide certainty for the investing company while ensuring regulatory compliance.
Project details and investment plans
The artificial intelligence data center, designed with a total IT capacity of 640 megawatts, had broken ground on its first 120 MW phase last week. BDx expects this initial facility to become operational in early 2027. The company had already secured 845 megavolt-amperes of grid capacity from state electricity provider PLN, part of more than 1.2 gigavolt-amperes allocated across its Indonesian AI campus portfolio.
The project forms part of BDx's $2 billion investment plan announced in June 2026 to establish multiple AI-focused data center campuses throughout Indonesia, with Purwakarta identified as one of three primary locations alongside facilities in Batam and Jakarta.
Growing environmental concerns
Environmental impact concerns have intensified as Indonesia emerges as a Southeast Asian hub for data center investment, attracting over $7 billion in commitments as of 2024. AI-focused facilities typically consume substantially more resources than traditional cloud computing centers, with power demands 10 to 15 times higher per rack and facilities above 500 MW requiring dedicated power substations and enhanced cooling infrastructure.
Data centers generally require between 1 to 5 million gallons of water daily for cooling systems, with AI facilities demanding significantly more due to greater heat generation from intensive computational operations. This water intensity has sparked growing scrutiny of projects near critical water sources.
Indonesian regulations implemented in 2023 mandate comprehensive water resource impact studies for data centers exceeding 100 MW capacity before construction permits can be issued. BDx reportedly had not completed its environmental impact assessment (Amdal) or obtained building approval (PBG) when construction commenced.
Pattern of water-related conflicts
The suspension follows a pattern of water-related conflicts surrounding data center developments in Indonesia. Batam residents staged protests in early 2026 against similar projects, reporting disruptions to daily water supply after data center operations began in that location.
Governor Dedi has consistently prioritized environmental protection since assuming office in 2023, previously halting industrial projects in the Citarum River basin and implementing stricter water use regulations for manufacturing facilities throughout the province.
Tensions between development and regulation
The situation highlights tensions between Indonesia's digital infrastructure ambitions and environmental safeguards. PLN allocated approximately 3 gigawatts of power capacity specifically for data center development across Java during 2025-2026 as part of the government's digital infrastructure strategy, even as regulators have increased scrutiny of foreign operators.
Singapore-based data center companies have faced heightened oversight since 2025, when the Investment Coordinating Board introduced requirements for foreign firms to partner with local companies and demonstrate water sustainability plans before receiving investment approvals.
Dedi attended the project's groundbreaking ceremony on July 28, though construction only commenced in recent days before the suspension order.
