Microsoft to Invest $1.7 Billion in Cloud, AI in Indonesia

Microsoft has announced plans to build and improve cloud and AI infrastructure in Indonesia with $1.7 billion, just weeks after it made a similar pledge to Japan.

Microsoft CEO Satya Nadella made the pledge on Tuesday during his visit to the outgoing president of Indonesia, Joko Widodo. Nadella said the $1.7 billion will go toward bringing “the latest and greatest AI infrastructure to Indonesia.”

Microsoft Makes Its Single-Largest Investment in Indonesia

The investment will be made over the next four years, according to reports. It will see Microsoft set up new cloud computing data centers and AI infrastructure across the country. Microsoft will also provide AI training for 840,000 developers in Indonesia. 

“We are going to lead this wave in terms of the next generation of AI infrastructure that’s needed,” Nadella said. 

“Our mission ultimately is to empower every person and every organisation in Indonesia to take advantage of this next big AI wave.”

Nadella told the government officials that this would be the “single biggest investment value” in the 29-year history of Microsoft’s operation in the country.

The development, meanwhile, is part of Microsoft’s ongoing commitment to expand the development of AI globally. Earlier in April, Microsoft said it would invest $2.9 billion over the next two years to increase its hyper-scale cloud computing and AI infrastructure in Japan.

The fund is aimed at expanding the country’s computing capabilities, upskilling the local workforce, advancing AI research, and strengthening cybersecurity defenses, according to reports. Microsoft also planned to establish a research lab in Tokyo as part of its investment plan. 

“The US$2.9 billion commitment is Microsoft’s single largest investment in its 46-year history in Japan, also the site of its first international office,” Microsoft wrote. “It effectively doubles the company’s existing financial commitment to expand its AI and cloud infrastructure across Japan.”

Microsoft’s AI Ventures Are Paying Off

Microsoft’s recent pledges in Japan and Indonesia come as the competition for AI dominance heats up among the big tech companies, including Google, Apple, etc. 

Nadella is expected to visit other Southeast Asian countries over the next few weeks, where he could announce similar financial commitments to promote the company’s generative AI technology, all of which could position Microsoft as a leader in the global AI race. 

Microsoft’s AI ventures are equally paying off. The company’s third-quarter report beat expectations, largely from gains led by its AI ventures.