Microsoft to invest $1.7 billion in AI infrastructure in Indonesia

Microsoft on Tuesday said it would pour $1.7 billion into Indonesia over the next four years to build new cloud and AI infrastructure. The announcement came as CEO Satya Nadella met with Indonesian President Joko Widodo the same day.

Microsoft said the funds will also go towards training 840,000 Indonesians in artificial intelligence skills and supporting the local developer community.

“This new generation of AI is changing the way people live and work everywhere, including in Indonesia,” said Nadella, chairman and CEO of Microsoft, in statement.

“The investments we’re announcing today – spanning digital infrastructure, skills and support for developers – will help Indonesia thrive in this new era,” Nadella said.

Microsoft also said it will partner with governments, organizations and communities to provide AI skills opportunities for 2.5 million people in the member states of the Association of Southeast Asian Nations by 2025.

Nadella met with Jokowi in Jakarta on Tuesday to discuss topics including technology and AI breakthroughs that will help Indonesia move forward, according to Indonesian news agency Antara.

Indonesia wants to become a developed country as stated in it Golden Indonesia 2045 Visionwhich aims to turn the country into a global economic power by 2045.

Microsoft’s investment will allow it to capitalize on growing demand for cloud computing services in Indonesia, as well as enable the nation to capture economic and productivity opportunities arising from AI, the tech giant said.

Coordinating Minister of Human Development and Culture Muhajir Efendi said this in January Indonesia faces enormous challenges in leveling its workforce to compete in a technological and globalized era.

Indonesia has a growing, young and tech-savvy population with Generation Z – those born between 1997 and 2012 – making up nearly 28% of the population, or 75.49 million people. The number of millennials born between 1981 and 1996 reached 69.9 million people, or 25.9% of the population.

Microsoft opened its first data center region in Indonesia in 2021 to meet customers’ needs for data to be stored in the country.