Residents on the Indonesian island of Batam are protesting what they describe as severe water shortages, which they attribute to the growing demand from data centers. Locals in the village of Bakau Serip have reported no running water for three months, relying instead on trucked-in water that they describe as "dirty, cloudy and smelly." The island is aiming to become a digital hub, leading to a rapid increase in data center construction.
Dewi Susanti, a resident of Bakau Serip, told the BBC that water had been reliable until the data centers arrived. Protests in August and September prompted authorities to instruct companies opening data centers to build their own desalination plants rather than drawing from existing reservoirs. However, concerns persist among residents about competing with servers for a dwindling water supply.
Official data on data center water usage in Indonesia is scarce, as companies often consider it proprietary information. Experts suggest that responsible and transparent development of data centers is necessary to avoid backlash from communities facing resource scarcity.
The global expansion of data centers, fueled by the demand for artificial intelligence infrastructure, has led to similar concerns worldwide. These large, often windowless buildings raise issues regarding neighborhood impact, noise, light pollution, and the significant consumption of water and energy. While electricity powers the servers, extensive cooling systems require substantial amounts of water to prevent overheating.
Research in the United States indicates that a typical data center can consume around 300,000 gallons of water daily, equivalent to the needs of approximately 1,000 U.S. households. Larger facilities could potentially use as much water as 2,200 households per day, alongside enough electricity to power 22,000 homes.
Batam, which lacks natural freshwater sources, relies on rainwater collected in six artificial reservoirs. The island's 1.3 million residents are experiencing particularly acute water shortages this year, possibly exacerbated by a historic El Niño weather pattern. Simulations suggest that the Nongsa reservoir, a key water source for areas like Bakau Serip, could dry up within a month without rainfall. The water shortage is impacting livelihoods, with residents forced to spend money on water storage instead of essential goods like rice.
Authorities in Batam have approved 10 data centers, with six planned for the Nongsa Digital Park. Two are operational, and a third is under construction, with more pending approval. The island has attracted significant investment, exceeding $6.7 billion by mid-2026, partly due to demand from nearby Singapore, which has implemented efficiency standards for its own data centers. Regions like the Riau Islands, including Batam, and Malaysia's Johor state are being promoted as complementary hubs. Johor has seen a surge in data center projects, leading to similar local grievances about noise, dust, and water shortages, prompting regulatory measures.
Data centers in Batam are attractive to international investors from the U.S., China, and Australia due to lower operating costs, proximity to Singapore, and access to subsea cable routes. Companies such as Hong Kong-based Gaw Capital and Singapore's DayOne are involved in developing these facilities. Projections estimate that by 2030, power demand from data centers in Batam could exceed 1,100MW, enough to power nearly one million homes.
Local residents are urging authorities to prioritize their needs, calling for government attention to the challenges faced by ordinary people. They express a desire for their water supply to be restored, emphasizing that basic necessities should not be sacrificed for large-scale investments.