Microsoft Announces $1.7 Billion Investment in Cloud Services and AI in Indonesia

During his visit to Indonesia, Microsoft’s CEO, Satya Nadella, revealed an ambitious investment plan. The company is set to pour $1.7 billion into expanding cloud services and artificial intelligence over the next four years in the country. This initiative will involve the establishment of data centres to bolster the advancement of these technologies.

Indonesia is the first stop on Nadella’s tour of Southeast Asian countries, where he aims to promote Microsoft’s cutting-edge generative AI technology. Following his time in Indonesia, he will continue his trip to Malaysia and Thailand to further engage with the region.

During his visit, Nadella met with outgoing President Joko Widodo and his cabinet ministers to discuss collaborative AI research and talent development initiatives. Indonesian Communications Minister Budi Arie Setiadi shared that President Widodo suggested Microsoft consider establishing its data centres in Bali or the new capital city of Nusantara, which is currently in development in Borneo.

One of the key components of Microsoft’s investment in Southeast Asia is a commitment to training 2.5 million individuals in AI usage by 2025, with 840,000 of them in Indonesia alone. This initiative aligns with the company’s global efforts to support the development of AI infrastructure, as seen in recent investments in Japan.

Nadella’s visit to Jakarta follows Apple CEO Tim Cook’s recent meeting with President Widodo, during which Cook expressed interest in potentially constructing a manufacturing facility in Indonesia. The country’s large and tech-savvy population makes it an attractive market for tech companies looking to expand their presence in Southeast Asia.

Microsoft’s strong performance in the third quarter, with revenue and profit exceeding Wall Street estimates, can be attributed to the increasing adoption of artificial intelligence technology across its cloud services.