Microsoft to pour $1.7 billion into AI and Cloud Infrastructure 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 enhance productivity in workplaces worldwide.

During his visit to Jakarta, Nadella emphasized the transformative impact of AI on people’s lives and work, 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 community of tech developers.

Indonesia, with the third-largest developer community in the Asia-Pacific region, is poised to benefit significantly from Microsoft’s investment. The country’s growing tech sector, coupled with the rise of AI, is expected to have a profound impact on its economic landscape. A study by Kearney projected that AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030, with Indonesia capturing $366 billion of that total.

During a meeting with Indonesian President Widodo, Nadella discussed plans to establish an AI research center in Indonesia and potentially build a Microsoft data center in Bali or Nusantara, the country’s new capital city on Borneo island. This strategic partnership aims to further advance Indonesia’s digital infrastructure and position the country as a key player in the AI space.

Nadella’s visit to Indonesia is just the beginning of a regional tour that will also include stops in Thailand and Malaysia. Microsoft’s investment in Indonesia signals a significant milestone in the country’s tech industry and underscores the growing importance of AI technology in shaping the future of work and innovation.