2 min read
In a landmark move to accelerate Southeast Asia’s digital transformation, Microsoft Indonesia data centre operations officially began on Monday with the opening of its first cloud region in Jakarta—solidifying Indonesia’s role as a key player in the region’s cloud infrastructure boom.
The Microsoft Indonesia data centre, called the Indonesia Central Cloud Region, was inaugurated by Communication and Digital Minister Meutya Hafid on behalf of President Prabowo Subianto. Meutya praised the move as a reflection of global trust in Indonesia’s digital policies and capabilities in managing AI and cloud technologies.
Microsoft’s investment is poised to inject $2.5 billion into the local economy and generate 60,000 jobs by 2028. The company also plans to train 1 million Indonesians in digital skills, with more than 840,000 already trained under AI education programs.
Indonesia Emerges as a Regional Cloud Powerhouse
With 84 operational data centres, Indonesia now stands as the second-largest data centre market in Southeast Asia, trailing only Singapore. Microsoft joins other tech giants like Amazon and Google, who are also expanding in the region amid rising demand for localised cloud services.
The rapid development is driven in part by regulatory mandates requiring local data processing, compelling global firms to establish on-ground operations. Indonesia’s renewable energy resources and geographic advantages position it as a prime alternative to land-scarce Singapore.
The Southeast Asian data centre market, valued at $10.23 billion in 2023, is projected to reach $17.73 billion by 2029. The launch of the Microsoft Indonesia data centre plays a key role in this momentum, acting as an economic catalyst and fostering a digital ecosystem that supports job creation and innovation.
With regional data consumption expected to triple by 2025, the expansion of cloud infrastructure continues to gain pace, solidifying Indonesia’s status as a regional tech hub.
