Indonesia and Brazil Forge Energy Partnership to Power Data Centers with Hybrid Gas-Solar Projects

October 28,2025


In a move to bolster sustainable digital infrastructure, Indonesia Energy Corporation (IEC) has entered a strategic partnership with Brazil's Aguila Energia e Participações (AEP) to develop hybrid natural gas and solar power projects aimed at supporting Brazil's growing data center industry.


The collaboration was formalized through a Memorandum of Understanding (MoU) signed during high-level summit meetings between Indonesian President Prabowo Subianto and Brazilian President Luiz Inácio Lula da Silva last week. The agreement builds upon a preliminary partnership established between the two companies in August.


Under the non-binding MoU, the companies will identify and assess opportunities to develop two pilot projects in Brazil's northeast region. Each initial project is planned to have a generation capacity of approximately 10 megawatts (MW), with the potential for significant expansion to over 400MW contingent on market demand and the availability of funding.


The primary objective is to create a self-sustaining energy infrastructure capable of meeting the rigorous power requirements of modern data centers and high-performance computing applications, which are essential for artificial intelligence and other advanced technologies.


Frank Ingriselli, President of IEC, highlighted the strategic importance of the partnership. "This summit created an opportunity for both countries to commit to cooperation in next-generation energy systems," Ingriselli stated. "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."


IEC, an independent Indonesian oil and gas company with primary operations in Sumatra and Java, described the venture as part of a broader strategy to expand internationally into hybrid and transitional energy projects.


The initiative targets the largest data center market in Latin America. Brazil is currently home to approximately 60 operational data centers, with up to 50 additional facilities under construction or in the planning stages. Major industry players in the country include Ascenty, Scala Data Centers, ODATA, Equinix, and Elea Digital, with São Paulo and Rio de Janeiro serving as the primary hubs.


This partnership signifies a cross-continental effort to address the escalating energy demands of the digital economy through innovative and diversified power solutions.


SOURCE DCD

 

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