October 28, 2025
Indonesia Energy Corporation (IEC) has entered into a strategic partnership with Brazilian firm Aguila Energia e Participações (AEP) to develop hybrid natural gas and solar power pilot projects aimed at supplying Brazil's burgeoning data center market.
The non-binding Memorandum of Understanding (MoU) was finalized last week during high-level summit meetings between Indonesian President Prabowo Subianto and Brazilian President Luiz Inácio Lula da Silva, who was on a state visit to Indonesia.
The agreement outlines plans to identify and assess opportunities for two initial pilot projects in Brazil's northeast region. Each project is slated to commence with a generation capacity of approximately 10 megawatts (MW). The partnership envisions significant potential for scaling, with the possibility of expanding the combined capacity to over 400MW contingent on market demand and the successful securing of funding.
The core objective of the collaboration is to establish a self-sustaining energy infrastructure capable of meeting the rigorous power requirements of modern data centers and high-performance computing (HPC) applications. This initiative builds upon a preliminary partnership agreement signed by the two companies in August 2025 to evaluate energy-related investments in Brazil.
Frank Ingriselli, President of IEC, highlighted the strategic importance of the deal, stating, “This summit created an opportunity for both countries to commit to cooperation in next-generation energy systems. By integrating AEP’s stranded gas resources into hybrid gas-to-wire and renewable projects, we can help power data centers and AI infrastructure while advancing our own gas development initiatives in Indonesia.”
Indonesia Energy Corporation is an independent oil and gas company with primary operations in the Kruh and Citarum production blocks on the islands of Sumatra and Java. The collaboration with AEP is reported to be a key component of IEC's broader international expansion strategy into hybrid and transitional energy projects.
The move comes as Brazil solidifies its position as the largest data center market in Latin America. The country is currently home to approximately 60 operational facilities, with an estimated 50 additional centers in various stages of construction or planning. The metropolitan area of São Paulo serves as the nation's primary hub, followed by Rio de Janeiro. Major industry players in the region include Ascenty, Scala Data Centers, ODATA (a part of Aligned Data Centers), Equinix, and Elea Digital.
SOURCE DCD
