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July 4, 2024
PI Global Investments
Infrastructure

Microsoft to invest in AI and cloud infrastructure in Indonesia


The investment announced on Tuesday will include AI training for 840,000 people, as well as support for Indonesia’s growing community of tech developers.

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Microsoft announced that it will invest $1.7 billion (€1.58 billion) in the next four years in cloud and artificial intelligence (AI) infrastructure in Indonesia.

CEO Satya Nadella said the new generation of AI is reshaping how people live and work on a tour of Southeast Asia. It marks the company’s single largest investment in Indonesia.

“The investments we are announcing today – spanning digital infrastructure, skilling, and support for developers – will help Indonesia thrive in this new era,” Nadella said.

Microsoft runs one of the world’s largest cloud computing operations and has taken a significant step into artificial intelligence by incorporating an AI chatbot into its search engine, Bing.

Its earnings report on Thursday said profit rose 20 per cent for the January-March quarter as it tries to position itself as a leader in applying AI technology to make workplaces more productive.

The company sees Southeast Asia as a growing market and a possible location for more AI development.

A study by Kearney, a global consulting firm, said that AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030, of which Indonesia is expected to capture $366 billion (€341 billion).

The investment announced Tuesday will include AI training for 840,000 people, as well as support for Indonesia’s growing community of tech developers.

Indonesia is home to the third-largest developer community in the Asia-Pacific region after India and China.

More than 3.1 million developers in Indonesia use GitHub, a Microsoft-owned platform for software development, collaboration, and innovation. It is projected to be one of the top five developer communities on GitHub globally by 2026.



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