Microsoft to allocate $1.7 billion for AI and cloud infrastructure development in Indonesia

Microsoft CEO Satya Nadella announced a groundbreaking $1.7 billion investment in cloud and artificial intelligence infrastructure in Indonesia, marking the largest investment in the company’s history in the country. This move underscores Microsoft’s commitment to leveraging AI technology to drive productivity and innovation in workplaces worldwide.

During his visit to Jakarta, Nadella emphasized the transformative impact of AI on society, stating, “This new generation of AI is reshaping how people live and work everywhere, including in Indonesia.” The investment will include AI training for 840,000 individuals and support for Indonesia’s burgeoning tech developer community, positioning the country to thrive in the digital era.

Indonesia, with its rapidly growing developer community, is seen as a key market for AI product development in Southeast Asia. A study by Kearney projected that AI could contribute nearly $1 trillion to the region’s GDP by 2030, with Indonesia expected to capture a significant portion of that growth.

In a meeting with Indonesian President Joko Widodo, Nadella discussed plans to establish an AI research center in Indonesia and potentially build a Microsoft data center in the country’s new capital city on Borneo island. This aligns with Indonesia’s vision of becoming one of the world’s top five economies by 2045, driven by advancements in digital technology and information sectors.

Nadella’s visit to Indonesia is part of a regional tour that will also include stops in Thailand and Malaysia, underscoring Microsoft’s commitment to fostering technological innovation and economic growth in Southeast Asia.