Abstract
Data centers are fast-growing energy users, and their electricity demand will further increase considerably. Indonesia requires a rapid growth in digital infrastructure due to its climate objectives and urban land shortage. Despite its significant solar energy potential, its development strategies lack a framework for renewable-powered data centers. This study addresses this gap by designing and validating a hybrid energy system integrating rooftop photovoltaics (PV), battery storage, and diesel generators to enhance the energy reliability and environmental sustainability of data centers. Techno-economic simulation shows that the proposed system achieves 100% power availability with zero downtime, reduces diesel dependence, and lowers carbon emissions relative to the conventional setup. It yields a competitive levelized cost of electricity of $0.079/kWh, a 29.8% reduction in electricity costs, a 4.7% return on investment, and an 8.7-year payback period. Further economic analysis demonstrates that incorporating carbon pricing increases the system’s net present value and internal rate of return, indicating that carbon market mechanisms can significantly enhance the financial viability of sustainable data centers. The findings highlight the viability of rooftop PV–battery systems for high energy reliability, low operational costs, and environmental sustainability in data centers on limited land. This paper offers a replicable framework for integrating renewable energy into critical digital infrastructure in developing tropical countries. This study highlights the urgent need for policy reforms to aligning Indonesia’s energy, climate, and digital development strategies to a just, sustainable digital transition