Microsoft will invest US$1.7 billion in AI and cloud infrastructure in Indonesia | Technology

Microsoft CEO Satya Nadella says the investment will help Southeast Asia’s largest economy thrive in the “new era.”

Microsoft has announced plans to invest US$1.7 billion in artificial intelligence and cloud services in Indonesia.

According to plans revealed by Microsoft CEO Satya Nadella, the tech giant will train 840,000 people in Indonesia in using AI and provide support to the country’s growing number of technology developers.

The announcement marks Microsoft’s biggest investment in its nearly three-decade history in the Southeast Asian country.

Nadella spoke on Tuesday with President Joko Widodo, popularly known as Jokowi, at Jakarta’s presidential palace, before delivering a speech on AI in the Indonesian capital.

“This new generation of AI is reshaping the way people live and work around the world, including in Indonesia,” said Nadella on the first stop of a trip to Southeast Asia.

“The investments we announce today – spanning digital infrastructure, skills and developer support – will help Indonesia thrive in this new era,” he said.

Nadella said Microsoft’s investment would “bring the latest and greatest AI infrastructure to Indonesia.”

“We will lead this wave in terms of the required AI infrastructure,” he said.

Today we announce our largest investment in our nearly three decades in Indonesia, as we forge partnerships to advance the country’s cloud and AI ambitions and help Indonesia thrive in this new era.

-Satya Nadella (@satyanadella) April 30, 2024

Indonesia, with a population of around 280 million people, is Southeast Asia’s largest economy and home to the region’s third-largest developer community after India and China.

In a 2020 study, global consulting firm Kearney said AI could contribute nearly $1 billion to Southeast Asia’s gross domestic product by 2030, with Indonesia expected to capture $366 billion of that gain.

Nadella’s visit comes after Apple CEO Tim Cook met last month with Widodo and President-elect Prabowo Subianto in Jakarta, where he said he would “look into” manufacturing in the country.

Microsoft is looking to increase support for AI development globally, and last month announced multibillion-dollar investments in cloud and AI infrastructure in Japan and UAE-based AI company G42.