Singapore’s BDx AI sticks to 2027 target after Indonesia halts work on data centre

The construction halt for BDx's AI data center in Indonesia highlights how local regulatory adherence can directly affect project timelines, even for major infrastructure. Governor Dedi Mulyadi's intervention, based on unfulfilled environmental impact assessments (AMDAL) and building approvals (PBG, for building approval), demonstrates that permits are not merely administrative steps but critical prerequisites for development, impacting a project that had already begun initial construction.

The project's planned use of water from the Jatiluhur reservoir, a key source for Greater Jakarta and West Java, has drawn scrutiny. With water needs potentially reaching 384 liters per second when fully developed, the governor has called for public environmental analysis and an independent assessment. This concern over resource allocation underscores a broader challenge for data centers in water-stressed regions, even when local officials claim sufficient supplies remain.

Indonesia's expanding data center sector, driven by demand for cloud computing and AI, now faces increased scrutiny over its resource consumption. This incident illustrates that the pace of development must align with regulatory processes and public interest regarding environmental impact. While BDx maintains its 2027 target, the delay points to the complexities of scaling digital infrastructure in a region balancing growth with environmental considerations.