Microsoft launched its Indonesia Central Cloud Region on May 27, 2025, representing its first data center cluster in the country. This development is expected to significantly accelerate Indonesia’s digital transformation and economic growth, with the potential to contribute US$2.5 billion to the national economy.
The establishment of this cloud region is part of Microsoft’s US$1.7 billion investment in cloud infrastructure and artificial intelligence (AI) in Indonesia, announced by CEO Satya Nadella in April 2024. Minister of Communication and Digital Application (Komdigi), Meutya V. Hafid, stated that this investment is a catalyst for national development, with the potential to create up to 60,000 new jobs by 2028.
Key Highlights of Microsoft’s Investment
- Expected contribution to Indonesia’s economy: US$2.5 billion
- Potential new jobs by 2028: 60,000
- Current participants in AI training programs: over 840,000
- Projected growth of local data center market by 2030: US$3.79 billion
Meutya V. Hafid emphasized that the launch reflects strong global confidence in Indonesia’s digital policy direction and indicates the country’s readiness to shape and manage advanced technologies like cloud computing and AI. Indonesia’s strategic location on major global connectivity routes and abundant renewable energy resources make it an attractive location for sustainable data centers.
Dharma Simorangkir, President Director of Microsoft Indonesia, described the launch as pivotal for the nation’s digital future. The new cloud region will be part of Microsoft’s global network of over 60 cloud regions, empowering individuals and organizations to scale both domestically and internationally.
Benefits of the Cloud Region
- Accelerates Indonesia’s digital transformation
- Contributes to economic growth
- Creates new job opportunities
- Supports sustainable and environmentally friendly data centers
- Enhances global connectivity
The Indonesia Central Cloud Region will provide public cloud services such as computing power, storage, and applications accessible via the internet. This development positions Indonesia as a hub for cloud infrastructure in the region, driven by both domestic and global demand.
