Microsoft will invest $1.7 billion in AI and cloud infrastructure in Indonesia

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Microsoft is making its biggest investment ever in Indonesia, pledging $1.7 billion over four years for new cloud and artificial intelligence infrastructure. This move marks a significant step for Microsoft in the country, as it seeks to expand its presence and leverage the potential of cloud computing and AI technologies.

The company, led by CEO Satya Nadella, sees Indonesia as a key market for growth and innovation. During his visit to Jakarta, Nadella highlighted the transformative impact of AI on people’s lives and workplaces, emphasizing the importance of investing in digital infrastructure, skills training, and developer support to drive Indonesia’s success in the digital era.

The investment will focus on AI training for 840,000 individuals and will provide support to Indonesia’s burgeoning community of tech developers. With over 3.1 million developers using GitHub in Indonesia, the country is poised to become one of the top developer communities globally by 2026, creating opportunities for innovation and collaboration.

This investment comes at a time when Southeast Asia is experiencing rapid digital transformation, with AI expected to contribute significantly to the region’s economic growth. A study by Kearney predicts that AI could add nearly $1 trillion to Southeast Asia’s GDP by 2030, with Indonesia projected to capture a substantial portion of this growth.

President Joko Widodo’s administration has prioritized the development of digital technology and information sectors as part of its Golden Indonesia 2045 Vision. This ambitious vision aims to propel Indonesia into the ranks of the world’s top five economies by 2045, marking 100 years since independence.

During Nadella’s meeting with President Widodo, the president proposed the establishment of an AI research center in Indonesia and a Microsoft data center in Bali or Nusantara, the country’s new capital city. These initiatives align with Indonesia’s goals of fostering innovation and driving economic development through technology.

The investment by Microsoft reflects the company’s commitment to supporting Indonesia’s digital transformation and contributing to its long-term economic growth. By investing in cloud and AI infrastructure, Microsoft aims to empower individuals, businesses, and government organizations to harness the full potential of technology for innovation and progress.

As Nadella continues his regional visit to Thailand and Malaysia, Microsoft’s investment in Indonesia signals its confidence in the region’s potential and its commitment to driving digital innovation across Southeast Asia. With the support of government initiatives and collaboration with local stakeholders, Microsoft aims to play a pivotal role in shaping the future of technology in the region.

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