Concerns Rise Over Data Centres and Water Shortages in Batam

Residents of Batam, an Indonesian island, are facing serious water shortages as data centres multiply to support the burgeoning artificial intelligence (AI) sector. As water taps run dry, frustrations mount and protests erupt.

The Growing Tech Industry

With the strong El Nino cycle leading to a prolonged drought, Batam's local water utility has reported significant challenges resulting in reduced rainfall. This situation has worsened the strain on already limited water resources.

The recent installation of data centres—large facilities responsible for powering AI applications—adds to the water demand as cooling mechanisms often utilize significant amounts of water. Initial optimism about industrial development in Batam has quickly turned to concern as residents experience unprecedented shortages.

Community Impact

Community member Juniardi Adinda Sembiring Gurukinayan expressed that the enjoyment of local industry was quickly overshadowed by vital service disruptions, stating, "Sometimes I skipped my shower." Other residents echoed this sentiment, emphasizing that essential tasks like cooking are now compromised due to the lack of water supply.

The problems reached a tipping point when groups of residents protested outside the newly developed Nongsa Digital Park, questioning whether the growing number of data centres is directly correlated with their water crisis. Local water utility Air Batam Hilir has attributed the water shortages to both drought and technical faults, stating that the nearby Nongsa Reservoir is alarmingly low.

Measures Taken

In response to the ongoing crisis, authorities mandated that data centre developers implement seawater desalination plants to alleviate the strain on local water systems. Companies like BW Digital, DayOne, and Princeton Digital Group are among the active players in this space, aiming to operate sustainably by designing closed-loop water systems that minimize fresh water use.

Despite the distasteful conditions of the alternative water distributed by the government, many locals rely on it. For instance, resident Sulastri recounted pouring water from plastic bottles to wash dishes as the regular supply has become unreliable. Another protest participant, Rahmat, lamented that in his coastal village, residents have resorted to using seawater for hygiene needs.

Expanding Data Centre Capacity

Industry forecasts predict that Southeast Asia's data centre capacity will vastly increase by 2030, driven by the escalating demand from the AI sector. This rapid technological expansion not only heightens pressure on local water supplies but also poses challenges for electricity infrastructure, which remains heavily dependent on fossil fuels.

In neighboring Malaysia, the Johor region is emerging as a significant hub for AI infrastructure, with a staggering increase in data centre capacity over the last few years. Yet, along with this growth comes concerns regarding environmental implications, as data centre operations are projected to consume a hefty share of water and energy resources.

Community Pushback and Future Outlook

Resistance from the community does have an impact. In Kota Damansara, an intended data centre project was halted following local protests, where residents gathered thousands of signatures to oppose the development. As noted by local retiree Jahaidi Harun, if rainfall is scarce, the entire community feels the repercussions.

Experts call for careful management of resource use and spatial planning to ensure that regions like Johor can develop sustainably. As the tech industry expands, striking a delicate balance between economic growth and community welfare will be critical for securing the future of both residents and the industries they host.