Sustainable datacentres: powering green light into clouds

EV-charging infrastructure in Indonesia – a significant opportunity

Carbon as a financial commodity

Amid growing demands for transparency and regulatory reform in ESG analysis, addressing the persistent lack of reliable ESG data and the absence of a standardised reporting taxonomy has become increasingly critical. In this piece, we explore why closing these gaps is essential for enhancing comparability, credibility, and accountability across ESG disclosures.

Carbon as a Financial Commodity

As global efforts to combat climate change intensify, carbon has emerged as a new and powerful financial commodity. Once seen purely as a pollutant, carbon is now being priced, traded, and managed within sophisticated markets—transforming it into a measurable asset class. The underlying principle is simple: by assigning a cost to carbon emissions, companies and investors are incentivised to reduce their environmental impact while enabling capital to flow toward low-carbon innovation.

Carbon markets—both compliance-based and voluntary—allow entities to buy and sell carbon credits, representing a metric tonne of CO₂ reduced or removed from the atmosphere. In regulated markets, such as the EU Emissions Trading System (ETS), carbon allowances function much like financial instruments, with prices fluctuating according to supply, demand, and policy shifts. Meanwhile, voluntary carbon markets (VCMs) give corporations flexibility to offset emissions beyond regulatory requirements, often through investments in reforestation, renewable energy, or carbon capture projects.

However, treating carbon as a tradable commodity also raises concerns around valuation transparency, double counting, and verification integrity. Without robust standards and oversight, carbon trading risks becoming speculative rather than impactful. Thus, the financialisation of carbon underscores the need for stronger governance, credible certification, and global coordination to ensure that carbon markets truly drive decarbonisation and sustainable growth.

The Role of Carbon Markets in ESG Strategies

Carbon markets play a pivotal role in advancing corporate and investor Environmental, Social, and Governance (ESG) objectives, particularly within the environmental pillar. As organizations face increasing pressure to decarbonize their operations and portfolios, carbon pricing and trading mechanisms provide both a financial incentive and a strategic pathway toward achieving net-zero commitments.

For corporations, participating in carbon markets helps internalize the cost of emissions, turning environmental responsibility into a quantifiable business metric. By purchasing carbon credits or investing in offset projects, companies can balance unavoidable emissions while channeling capital into sustainable initiatives such as renewable energy, forest conservation, or carbon removal technologies. This approach not only enhances a company’s environmental credentials but also strengthens its ESG disclosure profile—demonstrating measurable progress toward climate goals.

For investors, carbon markets introduce new investment opportunities and risk management tools. Exposure to carbon assets allows portfolios to align with climate-transition strategies, hedge against future carbon costs, and capture value from decarbonisation trends. However, the effectiveness of these markets within ESG frameworks depends heavily on data integrity, regulatory harmonisation, and transparent measurement systems. Without these safeguards, carbon trading risks undermining the credibility of ESG commitments.

Ultimately, integrating carbon markets into ESG strategies represents a step toward connecting financial performance with environmental accountability, paving the way for a more sustainable global economy.

Ensuring Integrity and Transparency in Carbon Trading

As carbon trading gains momentum in both compliance and voluntary markets, integrity and transparency have become central to ensuring its credibility and long-term effectiveness. Without strong governance frameworks, carbon markets risk being undermined by inconsistent verification standards, double counting of credits, and opaque pricing mechanisms, which can erode trust and dilute their environmental impact.

The first step toward integrity lies in robust verification and certification systems. Every carbon credit must represent a genuine, measurable, and permanent reduction or removal of greenhouse gases. Independent third-party audits and internationally recognised standards—such as Verra’s Verified Carbon Standard (VCS), Gold Standard, or emerging Article 6 frameworks under the Paris Agreement—play a critical role in validating the authenticity of credits and ensuring they align with global climate objectives.

Transparency is equally vital. Public registries and digital tracking technologies like blockchain are increasingly being explored to enhance traceability, prevent fraud, and improve data accessibility for investors, regulators, and the public. Furthermore, aligning reporting practices across jurisdictions and integrating carbon market data into ESG disclosures will help investors better assess climate risks and corporate accountability.

Ultimately, maintaining integrity and transparency is not merely a compliance exercise—it is the foundation upon which the credibility of carbon markets rests. Only by ensuring that every traded tonne of carbon represents a verifiable climate benefit can these markets drive genuine progress toward a low-carbon global economy.

Global Harmonisation and the Future of Carbon Pricing

The future success of carbon markets depends largely on achieving global harmonisation—the alignment of carbon pricing mechanisms, standards, and verification systems across borders. Currently, the global carbon landscape is highly fragmented, with more than 70 carbon pricing initiatives operating independently across countries and regions. Each system varies in scope, price levels, and regulatory design, leading to inefficiencies, market distortions, and limited interoperability.

To unlock the full potential of carbon as a financial commodity, there is an urgent need to connect and standardise carbon markets under a cohesive international framework. The Paris Agreement’s Article 6 provides a critical foundation for this harmonisation, allowing countries to cooperate on emission reductions and trade carbon credits through transparent, rules-based systems. As global adoption increases, such frameworks could create a more liquid, stable, and credible carbon market that drives real emissions reductions while supporting sustainable investment flows.

In parallel, carbon pricing innovation is gaining traction. Instruments such as carbon futures, exchange-traded funds (ETFs), and tokenised credits are expanding investor participation and market depth. However, harmonisation must go hand in hand with data integrity, governance consistency, and equitable access, ensuring that developing economies can also benefit from carbon finance.

Ultimately, a globally aligned carbon pricing system will not only enhance climate cooperation but also embed carbon costs into mainstream financial decision-making—transforming how markets value sustainability and long-term resilience.

Conclusion – The Path Toward a Transparent and Accountable ESG Ecosystem

As global markets continue to embrace sustainability-driven growth, the evolution of Environmental, Social, and Governance (ESG) practices—and the integration of carbon as a financial commodity—represent a turning point in how businesses and investors define value. Yet, the effectiveness of these systems hinges on one critical factor: transparency underpinned by trust. Without credible data, standardised reporting frameworks, and verifiable climate actions, ESG efforts risk losing legitimacy and failing to deliver measurable outcomes.

The path forward lies in building a cohesive, accountable, and globally harmonised ESG ecosystem. This requires collaboration between governments, regulators, corporations, and investors to establish clear reporting taxonomies, strengthen data verification, and align carbon market practices under unified global standards. Leveraging technology—such as AI-driven analytics and blockchain transparency tools—can further enhance traceability and reduce the risk of misinformation or greenwashing.

Ultimately, the future of sustainable finance depends on transforming ESG and carbon reporting from voluntary disclosure exercises into core elements of financial governance. By embedding transparency, comparability, and accountability at every stage—from emissions tracking to carbon trading—markets can move closer to achieving their true purpose: driving equitable, long-term environmental and economic resilience for all.

Sustainable Datacentres: Powering Green Light into Clouds

As the world accelerates toward digital transformation, the demand for data processing and storage has soared — bringing with it a surge in energy consumption. Datacentres, the invisible engines of our cloud-based world, now account for a significant share of global electricity use and carbon emissions. In an era defined by sustainability and ESG accountability, the challenge is clear: how to power the digital economy without compromising the planet.

Sustainable datacentres are emerging as a crucial part of this solution. By integrating renewable energy sources, advanced cooling technologies, and AI-driven energy management systems, forward-thinking operators are redefining what it means to run “green clouds.” Tech giants and colocation providers alike are investing heavily in innovations such as liquid cooling, waste heat reuse, and on-site solar or wind power to minimise their carbon footprint while meeting the exponential growth of cloud demand.

Yet sustainability goes beyond energy efficiency. It encompasses circular resource use, hardware recycling, water conservation, and transparent ESG reporting—ensuring that the digital infrastructure of tomorrow aligns with the global drive toward net-zero emissions. As the intersection of technology and sustainability deepens, datacentres are not just powering the cloud; they are lighting the way to a greener, smarter, and more resilient digital future.

The Environmental Footprint of the Digital Cloud

Behind every search query, video stream, and digital transaction lies a vast network of servers consuming enormous amounts of electricity. While the cloud feels intangible, its infrastructure is anything but. Datacentres account for roughly 1–2% of global electricity consumption, a figure projected to rise as AI workloads, IoT connectivity, and data-intensive applications expand. This growing demand places datacentres at the heart of the climate conversation—transforming them from silent enablers of the digital economy into critical focal points for energy sustainability and carbon accountability.

The environmental footprint of the cloud is shaped by three main factors: energy use, water consumption, and electronic waste. Traditional datacentres rely heavily on fossil-fuel-powered grids, contributing to CO₂ emissions that undermine corporate net-zero ambitions. Additionally, cooling systems—essential to maintaining server performance—often consume vast quantities of water, exacerbating stress in regions already facing scarcity. At the end of hardware life cycles, improper disposal of servers and batteries adds to the global e-waste problem.

These challenges underscore the urgent need for a green transition in digital infrastructure. Sustainable datacentre operations are no longer optional—they are an ESG imperative. To remain credible, technology providers and cloud operators must move toward renewable-powered facilities, optimise energy efficiency through AI and automation, and adopt circular economy principles that reduce waste and extend asset longevity.

Innovations Driving Sustainable Datacentres

The race toward sustainability in the datacentre industry is being accelerated by technological innovation and environmental design. Operators are reimagining datacentre infrastructure—from power generation to cooling systems—to cut emissions, reduce waste, and boost overall energy efficiency.

One of the most transformative developments is the integration of renewable energy sources. Leading hyperscale providers are increasingly sourcing electricity from solar, wind, and hydro power, often through long-term power purchase agreements (PPAs) that guarantee clean energy supply and price stability. Some datacentres even incorporate on-site microgrids and battery energy storage systems to improve reliability and reduce dependence on fossil-fuel-based grids.

Cooling technology has also evolved dramatically. Traditional air-based cooling is being replaced with liquid immersion and direct-to-chip cooling, which use far less energy and water. These systems can lower operational temperatures more efficiently, enabling higher server density while shrinking environmental impact.

Beyond hardware, artificial intelligence and machine learning are transforming energy management. AI-driven systems continuously monitor workloads, predict thermal patterns, and automatically adjust cooling and power allocation—optimising performance while cutting energy waste. Meanwhile, the shift toward modular and edge datacentres supports localised computing, reducing latency and energy-intensive data transfers.

Collectively, these innovations are redefining the datacentre as a dynamic, sustainable ecosystem—one that aligns technological advancement with environmental responsibility. By embedding sustainability into every layer of operation, datacentres are evolving from passive power consumers into active participants in the green transition.

ESG Metrics and Accountability in Datacentre Operations

As datacentres evolve into critical infrastructure powering the global digital economy, ESG accountability has become central to their operations and investment strategies. Stakeholders—from regulators to institutional investors—are demanding greater transparency around how datacentres manage environmental impact, social responsibility, and governance standards. The challenge lies not only in improving sustainability performance but also in measuring and reporting it consistently.

From an environmental perspective, key metrics include Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), Carbon Usage Effectiveness (CUE), and the proportion of energy derived from renewable sources. These indicators help quantify how efficiently a facility consumes energy and resources. However, reporting must go beyond efficiency to include lifecycle emissions, e-waste management, and sustainable design choices.

On the social front, datacentres are being evaluated for their labor practices, diversity, worker safety, and community impact—particularly as large-scale projects often reshape local economies. From a governance standpoint, robust cybersecurity, ethical AI deployment, and compliance with data protection laws are integral to responsible operation.

To ensure credibility, datacentre operators are increasingly aligning with global standards such as GRI, SASB, and the EU Corporate Sustainability Reporting Directive (CSRD). Transparent ESG reporting not only enhances investor confidence but also drives continuous improvement. Ultimately, embedding measurable ESG metrics transforms sustainability from a marketing claim into a core operational and strategic discipline.

The Future: Toward Net-Zero and Circular Datacentres

The next phase in datacentre sustainability goes beyond efficiency—it’s about achieving net-zero emissions and embracing circular design principles. As global climate targets tighten, datacentres must evolve into ecosystems that not only minimise environmental impact but also actively contribute to regeneration and resilience.

Achieving net-zero datacentres requires a holistic approach that integrates renewable power sourcing, carbon offsetting, and energy storage. Operators are increasingly investing in on-site solar and wind installations, pairing them with battery storage systems to stabilise energy use and reduce reliance on fossil-fuel grids. Some innovators are exploring hydrogen fuel cells as a clean backup power alternative, while others are using AI-driven energy orchestration to ensure real-time efficiency across distributed facilities.

Equally transformative is the move toward a circular datacentre model, where waste is minimised and materials are continually repurposed. This includes recycling server components, reusing waste heat to power nearby buildings, and designing modular facilities that allow components to be upgraded or replaced with minimal disruption. Water stewardship will also remain a key focus, with advanced closed-loop cooling systems significantly reducing consumption.

By integrating these principles, datacentres can evolve from passive energy consumers into net-positive infrastructure—capable of producing clean energy, recycling resources, and supporting community resilience. The future of digital infrastructure will depend on how effectively datacentres can align performance, scalability, and sustainability in pursuit of a carbon-neutral cloud ecosystem.

Conclusion – Building the Green Backbone of the Digital Economy

As digital transformation accelerates across every sector, datacentres have become the backbone of the modern economy—supporting cloud computing, AI, financial systems, and global connectivity. Yet their rapid growth presents a defining challenge: balancing digital expansion with environmental responsibility. The shift toward sustainable datacentres marks not just a technological evolution, but a profound rethinking of how digital infrastructure interacts with the planet.

By embracing renewable energy integration, circular design, and transparent ESG accountability, the industry is charting a path toward a greener digital future. This transformation is being driven by innovation—AI-driven energy optimisation, advanced cooling technologies, and low-carbon materials—all converging to make datacentres more efficient, resilient, and climate-aligned.

However, the journey is ongoing. Achieving global sustainability goals will require collaboration between technology providers, policymakers, and investors, unified under shared reporting standards and long-term environmental commitments. As cloud demand continues to grow, the true measure of progress will lie not only in processing power, but in how responsibly that power is delivered.

Sustainable datacentres represent more than operational efficiency—they symbolise a commitment to powering progress without depleting the planet. By turning the cloud green, the industry is illuminating the path toward a digital ecosystem that is intelligent, inclusive, and in harmony with the Earth’s future.

EV-Charging Infrastructure in Indonesia: A Significant Opportunity

EV-Charging Infrastructure in Indonesia: A Significant Opportunity

Indonesia is at a pivotal moment in its journey toward sustainable mobility. As one of Southeast Asia’s largest automotive markets and a key global producer of nickel—the critical material for electric vehicle (EV) batteries—the country is strategically positioned to become a regional EV powerhouse. However, the success of this transition hinges on one crucial element: the development of a robust EV-charging infrastructure capable of supporting mass adoption.

Currently, Indonesia’s EV ecosystem is still in its early stages. While government initiatives, such as Presidential Regulation No. 55/2019 and the Electric Vehicle Roadmap, aim to accelerate adoption, the availability of public charging stations remains limited—concentrated primarily in major cities like Jakarta, Surabaya, and Bali. This infrastructure gap presents both a challenge and a significant investment opportunity for domestic and international stakeholders.

The demand for EVs in Indonesia is expected to surge in the coming decade, driven by declining battery costs, incentives for local production, and growing environmental awareness. As a result, expanding the EV-charging network represents not only an environmental imperative but also a strategic business opportunity—spanning utilities, property developers, energy companies, and technology providers.

Building a nationwide, accessible, and sustainable charging ecosystem will be essential to power Indonesia’s clean mobility revolution and position the nation as a leader in the electric future of Southeast Asia.

Current State of EV Adoption and Infrastructure in Indonesia

Indonesia’s electric vehicle (EV) market is gaining momentum but remains in the early stages of development compared to regional peers such as China and Thailand. As of 2025, the number of registered EVs in Indonesia is estimated to have surpassed 30,000 units, with growth expected to accelerate sharply as government incentives and private-sector investments expand. The Indonesian government has set an ambitious target of 2 million electric cars and 13 million electric motorcycles on the road by 2030, underpinned by national strategies to reduce emissions and dependency on imported fossil fuels.

In terms of infrastructure, the EV-charging network is gradually expanding, though coverage remains uneven. According to PLN (Perusahaan Listrik Negara), Indonesia’s state-owned electricity provider, there are currently over 1,200 public charging stations (SPKLU) and 9,000 battery-swapping stations (SPBKLU) nationwide. However, most are concentrated in major urban centres such as Jakarta, Bandung, Surabaya, and Bali, leaving vast intercity and rural areas underserved.

Private-sector participation is increasing, with companies such as Pertamina, Hyundai, Grab, and Electrum investing in charging networks and battery-swapping partnerships. Yet, challenges persist—including high capital costs, unclear business models, and regulatory uncertainties regarding tariffs and land use.

Despite these hurdles, the ecosystem is evolving quickly. With ongoing policy support, public–private collaboration, and advancements in battery technology, Indonesia is well-positioned to establish a comprehensive EV-charging infrastructure that supports both urban and long-distance electric mobility.

Policy Framework and Government Incentives Driving EV Infrastructure

The Indonesian government has made the development of the electric vehicle (EV) ecosystem a national priority, recognising its potential to reduce carbon emissions, stimulate industrial growth, and strengthen energy security. The cornerstone of this effort is Presidential Regulation No. 55/2019, which sets out a comprehensive roadmap for accelerating battery electric vehicle (BEV) adoption and establishing supporting infrastructure.

Under this framework, the government—through the Ministry of Energy and Mineral Resources (ESDM) and Perusahaan Listrik Negara (PLN)—is working to expand the network of public charging stations (SPKLU) and battery-swapping stations (SPBKLU) nationwide. PLN has introduced various partnership models, including joint ventures and revenue-sharing schemes, to encourage private-sector participation in the charging business.

A range of fiscal and non-fiscal incentives further supports market development. These include tax exemptions on EV imports and components, subsidies for battery production, and reduced electricity tariffs for charging operators. The government has also mandated that new residential and commercial buildings allocate space and capacity for EV-charging infrastructure, ensuring future readiness.

Moreover, Indonesia’s National Energy Policy (KEN) targets a 23% renewable energy mix by 2025, aligning EV growth with broader sustainability goals. The recent establishment of the Indonesia Battery Corporation (IBC) further reinforces the country’s integrated EV strategy—from raw materials to charging infrastructure.

Collectively, these policy initiatives are creating a favourable regulatory and investment environment, positioning Indonesia as one of Southeast Asia’s most promising EV markets.

Investment and Business Opportunities in EV-Charging Infrastructure

Indonesia’s transition toward electric mobility presents a multi-billion-dollar investment opportunity in EV-charging infrastructure. As the number of EVs grows, the demand for accessible, reliable, and fast-charging facilities will surge—opening new avenues for investors across the energy, technology, and real estate sectors.

The most immediate opportunity lies in the development and operation of public charging stations (SPKLU). These can be deployed at strategic urban locations, such as shopping centres, office complexes, parking facilities, toll road rest areas, and fuel stations. Investors can benefit from government-backed public–private partnership (PPP) models, supported by PLN’s revenue-sharing schemes and favourable electricity tariffs.

Another emerging segment is battery-swapping infrastructure (SPBKLU) for electric motorcycles, which dominate Indonesia’s vehicle fleet. Companies like Electrum (a GoTo–TBS partnership) and Pertamina NRE are pioneering large-scale battery-swapping networks, creating opportunities for collaboration in hardware manufacturing, software integration, and logistics.

There is also growing potential in integrated green-charging solutions, where stations are powered by solar energy or microgrids, aligning with Indonesia’s renewable energy targets. These hybrid systems can enhance energy resilience, particularly in remote areas where grid access is limited.

Additionally, property developers and hospitality operators are increasingly installing EV chargers to attract eco-conscious tenants and tourists, turning sustainability into a competitive advantage.

In short, Indonesia’s EV-charging sector offers diverse business opportunities—from infrastructure financing and equipment manufacturing to digital platforms for payment and fleet management—making it a strategic frontier for investors seeking both financial returns and environmental impact.

Challenges and Constraints to Infrastructure Expansion

Despite the strong growth potential, the development of EV-charging infrastructure in Indonesia faces several key challenges that could slow adoption if not addressed strategically.

First, high capital costs remain a major barrier. Establishing fast-charging stations, battery-swapping facilities, and associated grid upgrades requires significant upfront investment. For smaller operators or regional developers, these costs can be prohibitive without government incentives or private–public partnerships.

Second, uneven electricity grid access and capacity poses operational constraints. While urban centres such as Jakarta and Surabaya benefit from stable power supply, rural and remote areas often face limitations in grid reliability and voltage stability, complicating the deployment of high-capacity charging infrastructure.

Third, regulatory and permitting hurdles can create delays. Although the government has introduced supportive policies, inconsistent implementation across provinces, unclear licensing requirements, and land acquisition challenges can slow expansion and deter private investors.

Fourth, consumer awareness and adoption barriers persist. Many potential EV users remain unfamiliar with battery technology, range limitations, and charging options. Without sufficient education and public confidence in charging networks, adoption rates may lag behind infrastructure deployment.

Lastly, technological standardisation is an ongoing challenge. Differences in connector types, payment systems, and interoperability across networks can hinder seamless use, reducing the convenience that is critical to mass EV adoption.

Addressing these challenges will require a coordinated approach involving policymakers, utilities, investors, and technology providers to ensure infrastructure development is efficient, accessible, and scalable, supporting Indonesia’s long-term EV growth ambitions.

The Road Ahead: Scaling EV-Charging Infrastructure in Indonesia

The successful expansion of EV-charging infrastructure in Indonesia will hinge on strategic planning, innovation, and collaboration across the public and private sectors. With the country targeting millions of electric vehicles on the road by 2030, a comprehensive, nationwide network of charging and battery-swapping stations will be essential to support adoption and ensure consumer confidence.

Public–private partnerships (PPPs) will play a critical role, enabling investment in both urban hubs and underserved regions. Leveraging government incentives, such as subsidised electricity tariffs and tax exemptions, investors can deploy scalable infrastructure while ensuring financial viability. Strategic partnerships between utilities, technology providers, and real estate developers can further accelerate deployment, integrating charging points into commercial complexes, residential projects, and transportation hubs.

Technological innovation will also drive efficiency and convenience. Smart charging systems, AI-driven load management, and integrated digital payment platforms can optimise energy use, reduce costs, and enhance user experience. Meanwhile, hybrid solutions—such as solar-powered microgrids—can ensure resilience in areas with limited grid access, aligning infrastructure growth with Indonesia’s renewable energy goals.

Education and awareness campaigns will be equally important, helping consumers understand EV benefits, range management, and charging options. Simultaneously, standardisation of connectors, protocols, and interoperability will enable seamless usage across networks, fostering widespread adoption.

By combining investment, innovation, and regulatory support, Indonesia can scale its EV-charging infrastructure rapidly and efficiently, positioning itself as a regional leader in electric mobility and laying the foundation for a sustainable, low-carbon transportation future.

Conclusion – Unlocking Indonesia’s EV Potential

Indonesia stands at a pivotal juncture in its transition toward sustainable mobility. The rapid growth of electric vehicles, combined with supportive government policies and abundant local battery resources, creates a unique opportunity to transform the nation’s transportation landscape. Central to this transformation is the development of a comprehensive, accessible, and reliable EV-charging infrastructure, which will determine the speed and scale of adoption across urban and rural areas.

Investment in charging networks, battery-swapping stations, and renewable-powered solutions represents not only a business opportunity but also a strategic lever for environmental and economic impact. By leveraging public–private partnerships, technological innovation, and standardised protocols, stakeholders can overcome existing challenges such as high capital costs, grid limitations, and inconsistent regulatory frameworks.

Equally important is consumer confidence. A well-distributed and interoperable charging network, combined with awareness campaigns, will help encourage widespread EV adoption and embed sustainability into daily mobility choices.

Ultimately, the expansion of EV infrastructure in Indonesia is more than a technological or commercial endeavour—it is a national imperative that aligns with global decarbonisation goals, stimulates green investment, and positions Indonesia as a regional leader in clean mobility. By acting decisively, the country can unlock its full EV potential, driving economic growth while advancing toward a low-carbon, sustainable future for generations to come.