Indonesia’s most populous province has ordered Singapore-based BDx Data Centers to halt construction of a planned data-centre campus because the project had not secured required permits, as Southeast Asia’s largest economy seeks to expand its digital infrastructure while addressing environmental concerns.
BDx, which operates data centres for cloud providers and other large businesses across Asia, broke ground on Sept. 22 on a 640-megawatt artificial intelligence data-centre campus in Jatiluhur, West Java.
West Java Governor Dedi Mulyadi told BDx representatives in a meeting posted on Instagram on Wednesday that construction must stop until the required permits are obtained and the project’s environmental impact assessment is completed.
“The project is being halted not because it violates environmental rules. It’s being halted because the permits have not yet been issued,” Dedi said in a separate video posted on YouTube.
Dedi said he supported investment in West Java provided projects were environmentally friendly, while raising concerns about the impact of data centres on water supplies.
The dispute highlights a growing challenge for governments as investment in data centres accelerates to meet demand from cloud computing and AI.
Around the world, authorities have moved to freeze, restrict or ban new data-centre construction amid concerns over electricity costs, water supplies, land availability and the impact on local communities.
UN researchers said in June that data centres could consume twice as much power and water by 2030 as the industry expands to meet rising demand for AI.
Similar concerns have emerged elsewhere in Southeast Asia, including Malaysia, which has become one of the region’s fastest-growing data-centre markets.
Indonesia is also seeking to build out its data-centre industry as demand for cloud and AI infrastructure grows. The country’s data-centre market was valued at $2.81 billion in 2025 and is forecast to reach $6.08 billion by 2031, according to business intelligence company Research and Markets.
BDx’s planned Jatiluhur campus would have 640 MW of capacity, placing it among the large-scale infrastructure projects being developed to support AI workloads and cloud services.
The halt adds a permitting and environmental layer to Indonesia’s efforts to attract investment in digital infrastructure, with authorities balancing the economic benefits of data-centre projects against their demands for power, water and land.
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Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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