Microsoft Pledges $1.7 Billion for Indonesian Cloud and AI Expansion


Microsoft CEO Satya Nadella announced a significant investment of $1.7 billion in Indonesia, aimed at enhancing the country's technological landscape with cloud services and artificial intelligence. This investment will involve the construction of data centers and the deployment of cutting-edge AI technology. Nadella's visit to Jakarta marks the beginning of Microsoft's initiative to promote generative AI technology in Southeast Asia, with upcoming visits planned for Malaysia and Thailand later this week.

Microsoft will expand its investment in data centres and cloud computing in Indonesia by US$1.7 billion "to bring the latest and greatest AI infrastructure to Indonesia", Nadella said in the Indonesian capital Jakarta. "So we're going to lead this wave in terms of AI infrastructure that's needed".

During his visit to Indonesia, Satya Nadella engaged in discussions with outgoing President Joko Widodo and his cabinet ministers regarding collaborative AI research and talent development initiatives, as communicated by Communications Minister Budi Arie Setiadi. Microsoft's commitment includes the training of 2.5 million individuals in Southeast Asia in the utilization of AI by 2025, as stated by Nadella.

In its global efforts to bolster AI development, Microsoft is embarking on significant investments, including a $2.9 billion commitment to cloud and AI infrastructure in Japan and a $1.5 billion investment in the UAE-based AI firm G42. Satya Nadella's visit to Jakarta follows closely on the heels of Apple CEO Tim Cook's meeting with President Widodo, during which Cook expressed interest in exploring the establishment of a manufacturing facility in Indonesia.

With its vast and tech-savvy population, Indonesia stands out as a crucial target market for tech-focused investments in Southeast Asia. Microsoft, having surpassed Wall Street expectations for third-quarter revenue and profit last week, attributes its success to the widespread adoption of artificial intelligence within its cloud services.

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