PT Pertamina Geothermal Energy Tbk (PGEO) is preparing baseload electricity supply from geothermal energy to support the development of green data centers and the artificial intelligence (AI) ecosystem in Indonesia. The initiative forms part of the company's Beyond Electricity strategy, which expands the utilization of geothermal resources beyond traditional power generation.
The strategy encompasses the development of green data centers, green hydrogen production, direct use of geothermal steam, and technology and laboratory services. By moving beyond electricity generation, PGEO aims to unlock additional value from Indonesia's substantial geothermal resource base while addressing the growing demand for clean, round-the-clock power from digital infrastructure.
PGEO President Director Ahmad Yani said data centers and AI factories require a stable 24-hour electricity supply with low emissions, positioning geothermal as a natural fit for powering green data centers. "Geothermal is a clean domestic energy source capable of operating as baseload around the clock, making it highly suitable to serve as the backbone of green data centers in Indonesia," he said in an official disclosure on Monday, September 7, 2026.
As an initial step, PGEO has completed a feasibility study for the electrification of a green data center using geothermal energy in the Kamojang area, West Java. The project is designed as a pilot and proof of concept to test the business model, assess prospective customer requirements, and evaluate market readiness before scaling to commercial deployment.
To support the development, PGEO said it requires several regulatory and financial enablers, including improvements to tariff regulations to make them more competitive and transparent, expansion of fiscal incentives and green financing mechanisms, as well as synchronization of geothermal working areas (WKP), the national electricity supply plan (RUPTL), grid infrastructure, power purchase agreements, and commercial operation date (COD) targets.
On the capacity front, PGEO targets a gradual increase in installed capacity to approximately 1 gigawatt (GW) by 2028 and around 1.8 GW by 2034. The expansion will be underpinned by a geothermal resource portfolio of roughly 3 GW, providing a solid pipeline for future development.
Industry observers note that pairing geothermal baseload power with data center demand could set a precedent for other Southeast Asian nations with significant geothermal potential. As hyperscale cloud providers and AI developers increasingly prioritize renewable energy sourcing, PGEO's move may also strengthen Indonesia's position as a destination for sustainable digital infrastructure investment.
Pertamina Geothermal to Supply Baseload Power for Green Data Centers in Indonesia
By: IDCNOVARegion: Southeast Asia