Microsoft Opens First Cloud Region in Indonesia to Boost AI and Digital Transformation
Microsoft has officially launched its first cloud region in Indonesia, named Indonesia Central, marking a significant milestone in its efforts to support the country’s digital transformation and AI-driven growth.
This new facility is part of Microsoft’s broader $1.7 billion investment plan from 2024 to 2028, designed to drive economic growth and foster innovation in Indonesia. The launch took place at Microsoft’s AI Tour Jakarta, where over 800 decision-makers from leading organizations gathered to celebrate the opening and discuss the potential of AI and digital infrastructure.
Powerful Infrastructure for AI-Driven Innovation
The Indonesia Central cloud region is equipped with cutting-edge AI-ready hyperscale cloud infrastructure, providing local access to Microsoft’s supercomputers, which are essential for AI-driven industries such as healthcare, clean energy, and financial services.
This will significantly boost AI adoption across the region, enabling Indonesian businesses to innovate faster and scale globally. By offering high-performance processing capabilities and meeting stringent security and compliance standards, Microsoft’s cloud region will also support the development of AI models while addressing critical global challenges, including climate change and disease.
Scott Guthrie, Executive Vice President of Cloud & AI at Microsoft, said, “Indonesia’s vision for AI and digital transformation requires trusted infrastructure as its foundation. With the launch of Indonesia Central cloud region, we are bringing the full power of Microsoft cloud closer to Indonesian innovators – empowering every developer, every organization, and every government institution to innovate locally and scale globally.”
Driving Economic Growth and Creating Jobs
According to an IDC study, Microsoft’s investment, along with its cloud infrastructure in Indonesia, will generate approximately $15.2 billion in new economic value between 2025 and 2028. The Indonesia Central cloud region is projected to contribute 16.5% of this value and create over 106,000 new jobs.
This reflects the growing demand for digital transformation across industries in Indonesia, where organizations are increasingly adopting AI and cloud technologies to modernize operations and drive innovation.
Also read: Microsoft’s Aurora AI Now Predicts Air Quality with High Accuracy
Sustainability and Security at the Core
Microsoft’s Indonesia Central cloud region is designed to support its global sustainability goals, becoming carbon negative, water positive, and zero waste by 2030, while providing enterprise-grade security features, including encryption, physical safeguards, and network protection to ensure robust data security.Also read:
Supporting Indonesia’s Growing Cloud Ecosystem
Microsoft is expanding its support for Indonesia’s digital ecosystem with the launch of a new cloud region and the elevAIte skilling program, aiming to train one million Indonesians in AI by 2025. The company is collaborating with local organizations, governments, and educational institutions to set up an AI Center of Excellence. These initiatives are designed to drive national AI adoption, promote innovation, and align digital development with Indonesia's wider objectives.
