Microsoft to inject $1.7 billion into AI and cloud infrastructure in Indonesia

Microsoft CEO Satya Nadella announced on Tuesday that the tech giant will be investing $1.7 billion over the next four years in new cloud and artificial intelligence infrastructure in Indonesia. This marks the single largest investment in Microsoft’s 29-year history in the country.

With a focus on digital infrastructure, skilling, and support for developers, Microsoft aims to help Indonesia thrive in the new era of AI technology. The company sees Southeast Asia as a growing market and a potential hub for AI product development. The rise of AI in the region is expected to have a significant impact on the economic landscape, with a study suggesting that AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030.

As part of the investment, Microsoft plans to provide AI training for 840,000 people in Indonesia and support the country’s growing community of tech developers. Indonesia is home to the third-largest developer community in the Asia-Pacific region, with more than 3.1 million developers using GitHub, a platform owned by Microsoft.

During a meeting with Indonesian President Joko Widodo, Nadella discussed the possibility of building an AI research center in Indonesia and establishing a Microsoft data center in Bali or Nusantara, the country’s new capital city on Borneo island. This aligns with Indonesia’s focus on developing digital technology and information sectors as part of the government’s Golden Indonesia 2045 Vision.

Nadella’s regional visit began in Indonesia and will continue in Thailand and Malaysia over the next two days. The investment in Indonesia reflects Microsoft’s commitment to advancing AI technology and supporting the growth of the tech industry in the region.