Microsoft to Invest $1.7 Billion in Building Cloud Computing and AI Center in Indonesia

Microsoft CEO Satya Nadella, currently visiting Indonesia, announced on Tuesday (April 30) that Microsoft will invest $1.7 billion in the country over the next four years to develop cloud services and artificial intelligence (AI), including the construction of data centers.

Jakarta is the first stop of Nadella’s Southeast Asia tour, aimed at promoting the cutting-edge AI technology of the American company. Later this week, he will also visit Malaysia and Thailand.

Nadella stated that Microsoft’s investment will “bring the latest and most advanced artificial intelligence infrastructure to Indonesia.” He added, “We will lead the wave in providing the necessary AI infrastructure.”

Indonesian Minister of Communication and Information, Budi Arie Setiadi, mentioned that earlier on Tuesday, Nadella met with outgoing President Joko Widodo and current Cabinet Ministers to discuss collaborative AI research and talent development.

The minister mentioned that Widodo suggested Microsoft establish its data center either in the resort destination of Bali or in the newly developing capital of Nusantara, located in the jungles of Borneo.

Nadella revealed that by 2025, Microsoft aims to train 2.5 million people in Southeast Asia to use artificial intelligence, including 840,000 individuals in Indonesia.

Microsoft is actively expanding its AI initiatives globally, with plans to invest $2.9 billion in building cloud computing and AI infrastructure in Japan, as well as injecting $1.5 billion into the UAE-based AI company G42.

Just two weeks ago, Apple CEO Tim Cook also met with President Widodo, expressing considerations for setting up manufacturing facilities in Indonesia.

Last week, Microsoft exceeded Wall Street expectations for third-quarter revenue and profits, largely thanks to the gains from incorporating AI in their cloud services.

(Adapted from Reuters)