Microsoft to Invest $1.7 Billion in Indonesia for Cloud Services and AI

Microsoft is set to invest $1.7 billion in Indonesia to bolster the Southeast Asian country’s capabilities in cloud services and artificial intelligence. This investment will include the construction of data centers, according to Microsoft CEO Satya Nadella during his visit to Jakarta on Tuesday.

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Nadella’s visit to Jakarta marks the beginning of his tour of Southeast Asian countries, where Microsoft aims to promote its generative AI technology to drive growth. Following his visit to Indonesia, Nadella is scheduled to visit Malaysia and Thailand later in the week.

Microsoft plans to enhance its investment in data centers and cloud computing in Indonesia by $1.7 billion to provide the country with cutting-edge AI infrastructure. “So we’re going to lead this wave in terms of AI infrastructure that’s needed,” Nadella stated in Jakarta.

During his visit, Nadella met with Indonesia’s outgoing President Joko Widodo and his cabinet ministers to discuss collaborative AI research and talent development, as reported by Communications Minister Budi Arie Setiadi.

As part of its commitment, Microsoft aims to train 2.5 million individuals in Southeast Asia in AI usage by 2025. This initiative aligns with Microsoft’s broader strategy to support global AI development, including a $2.9 billion investment in cloud and AI infrastructure in Japan and a $1.5 billion investment in UAE-based AI firm G42.

Indonesia, with its sizable and tech-savvy population, is a key market for tech-related investments. This sentiment was echoed by Apple Inc CEO Tim Cook, who recently met with President Widodo and expressed interest in potentially establishing a manufacturing facility in Indonesia.

Microsoft’s robust third-quarter performance, surpassing Wall Street estimates for revenue and profit, was largely driven by the increasing adoption of artificial intelligence across its cloud services.

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