Microsoft to invest $1.7 billion in Indonesia’s cloud, AI infra

Nadella in Jakarta: Microsoft announced plans to invest $1.7 billion over the next four years in Indonesia, focusing on expanding cloud services and artificial intelligence. CEO Satya Nadella stated that this investment will involve the establishment of data centres and the introduction of cutting-edge AI infrastructure to the country. The initiative aims to position Microsoft at the forefront of AI infrastructure development in Indonesia.

During his visit to Jakarta, Nadella engaged in discussions with outgoing President Joko Widodo and his cabinet ministers regarding joint AI research and talent development initiatives. Widodo proposed potential locations for Microsoft's data centres, suggesting either Bali or the new capital city, Nusantara, currently under construction in Borneo's jungle.

Microsoft also outlined plans to train 2.5 million individuals in Southeast Asia in AI applications by 2025, with 840,000 of them to be trained in Indonesia specifically. This move aligns with Microsoft's broader global strategy to support AI development, as evidenced by recent investments in Japan and the UAE-based AI firm G42.

Nadella's visit follows Apple Inc CEO Tim Cook's meeting with Widodo, where discussions about the establishment of a manufacturing facility in Indonesia took place. With its sizable and tech-savvy population, Indonesia remains a strategic target market for tech investments.

Microsoft's commitment to Indonesia has comes after the company reported better-than-expected third-quarter revenue and profit, driven partly by the increasing adoption of AI across its cloud services.

(With Reuters inputs)