PT Pertamina Geothermal Energy Tbk (PGEO) plans to expand its business into data center operations, covering data processing, storage, and management, as well as computing infrastructure and hosting services (21/04).

The company stated that the new business activity is linked to its core geothermal operations, where electricity generated from geothermal energy will support data center operations and contribute to an integrated clean energy and digital infrastructure ecosystem.

Shareholder Approval to Be Sought for Business Diversification

The plan is part of PGEO’s strategy to diversify its business while optimizing geothermal energy utilization.

“This plan is part of the Company’s efforts to diversify its business while optimizing the use of geothermal energy,” management said in a disclosure to the Indonesia Stock Exchange.

The company planned to seek shareholder approval at its Annual General Meeting on April 21, 2026, and confirmed that no objections have been raised that could affect the proposal.

Indonesia Data Center Market Expands Rapidly

PGEO noted that Indonesia’s data center market experienced rapid growth in 2025, driven by increased cloud adoption, rising artificial intelligence workloads, regulatory support, and growing investor interest in Southeast Asia’s digital economy.

The country’s position as a regional data hub is strengthening due to the development of submarine cable systems that increase international bandwidth capacity.

Tier III data centers accounted for more than 61.59% of market share in 2025, while Tier I and II facilities are becoming less relevant as they no longer meet current requirements for uptime, redundancy, and security.

Strong Growth Expected in Colocation Segment Through 2031

The company highlighted significant growth in retail and wholesale colocation segments between 2024 and 2031.

Retail colocation capacity reached 388.11 MW in 2025 and is projected to increase to 1,623.91 MW by 2031, while wholesale capacity is expected to reach 1,275.93 MW.

Growth in retail colocation is driven by increasing digitalization among SMEs, startups, and cloud-native businesses that prefer flexible, scalable, and cost-efficient hosting solutions.

Colocation revenue rose from USD4.784 billion in 2024 to USD5.890 billion in 2025, showing a continued upward trend.

Kamojang Data Center to Be Powered by Geothermal Energy

PGEO plans to develop a data center facility in Kamojang, Bandung, with a total area of 5,133 square meters.

The development will be supported by a 5 MW geothermal power plant dedicated to supplying electricity to the facility.

The site will connect to at least two telecommunications providers, including Telkom Indonesia and PLN Icon Plus.

The project is expected to require an additional workforce of 38 employees focused on operations.

Financial Impact Includes Asset Growth and Recurring Income

Based on an independent feasibility study, the project is considered viable in terms of market, technical, operational, and financial aspects.

PGEO currently has total assets of approximately USD3.03 billion, and the investment is expected to increase fixed assets while reducing short-term cash.

The company expects recurring income that will improve profitability, supported by a net present value of Rp126.37 billion, an internal rate of return of 10.51%, and a benefit-cost ratio of 1.87 times.

Management stated that the plan is projected to have a positive impact on asset growth, revenue, and company value, with manageable increases in liabilities.

PHOTO: FREEPIK

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