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AI Data Center Expansion Challenges

AI Data Center Expansion Challenges

May 28, 2026 4 min read IT
AI Data Center Expansion Challenges

Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

My background is widespread between engineering, operations, and projects on critical facilities, infrastructures, and building systems. Currently, focus on operational reliability and process optimization of data centers. This includes identifying inefficiencies in the project deployment and building a culture to improve delivery speed and quality.  

 

Q2. Given that global grid constraints are currently extending power-connection lead times to 24–36 months, how is the industry reconciling aggressive AI-expansion roadmaps with the physical reality of utility-level rationing—and which alternative power-generation models are proving most viable for maintaining speed-to-market?

How the industry reconciles the aggressive expansion by changing the paradigm with estimating the power scalability, securing the capacity by making agreements with power companies, and building the power system to scale accordingly. 

Alternative power generation models currently on the market trends are combining grid and off-grid strategies. The power source comes from clean energy, such as CNG and the combination models, such as a hybrid setup (grid + gas + solar).

 

Q3. With 92% of industry leaders citing grid constraints as the primary obstacle to expansion, how is the shift from a 'Passive Consumer' model to a 'Grid Interdependent' one happening?

Some business models are being developed to a new approach by making new independent power plants for the sites (usually for non-critical loads). Especially during peak hours, when its rate increases. The model changed from standby backup power to active grid to supply the power.

 

Q4. What is the measurable latency advantage provided by Jakarta edge sites compared to centralized Singapore hubs?

The baseline will be the lower cost structure and workload efficiency provided by Jakarta edge sites if we compare to Singapore. Jakarta has an international transit of a subsea cable to Singapore. 

By regulation, Indonesia adopts data localization and residency, where all critical information, such as finance and public-sector data, must be kept in local data centers.

 

Q5. In light of local grid stability challenges, what is the current 'Mean Time Between Failures' (MTBF) of the primary power supply, and what is the ROI on transitioning from diesel-only backup to Battery Energy Storage Systems (BESS)?

In terms of ROI, the BESS system will not replace diesel genset cost efficiency (not a fuel replacement). BESS is suitable as a reliable power source to cater to ultra-sensitive AI equipment workload. So in this case, BESS is inevitable for risk mitigation. Typically, the BESS end of lifecycle (SOH) will be 7-8 years before the capacity degrades (usually at the purchasing process, a battery guarantee for a 10-year lifecycle will be stated).

 

Q6. With the surge in AI-driven GPU workloads, at what kW-per-rack density does the current cooling infrastructure in Jakarta hit a 'thermal ceiling,' and what is the estimated CapEx to retrofit for liquid cooling or rear-door heat exchangers?

Typically, data center design for medium density is 8-12 kW and high density is 20-35 kW. The thermal ceiling trend is 32 degrees Celsius (plus or minus 2 degrees). The best model is rear door heat exchangers, where the estimated capex is around USD 20k.

 

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

The typical question will be how to secure scalable infrastructure and speed to market ahead of capacity demand, and what is the advantage?

 


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