Fri, 14 Mar 2025 15:22 | Data Center and Cloud Computing | Editorial INTI
Jakarta, INTI – Microsoft has announced that its first data center in Indonesia, the Indonesia Central Cloud Region, will begin operations in the second quarter of 2025. This facility has been under construction since 2021 and will become part of Microsoft's global network, which consists of more than 60 cloud regions worldwide.
According to an IDC report, the launch of the Indonesia Central Cloud Region will accelerate cloud adoption in Indonesia and contribute an economic value of US$ 2.5 billion. This figure represents approximately 16.5% of the total projected new economic value of US$ 15.2 billion, which will be generated by Microsoft, its business partners, and cloud customers between 2025 and 2028. Additionally, this data center is expected to create 106,295 new jobs across various sectors, including manufacturing, finance, communications, professional services, and government.
The Indonesia Central Cloud Region consists of three availability zones, each housing a group of data centers that are close enough to ensure low-latency connections but far enough apart to reduce the risk of disruptions from power outages or local disasters.
Microsoft offers a range of cloud-based services, including Microsoft Azure, Microsoft 365, Dynamics 365, and Power Platform, directly from this data center. With the establishment of this cloud region, businesses and public sector organizations in Indonesia can store their data locally while complying with national data sovereignty regulations. Having a closer server location also results in lower latency and improved performance for cloud-based services.
As part of its digital development initiative, Microsoft has trained over 704,342 Indonesians in the digital skills needed for the AI era. This initiative has been accelerated by the launch of elevAIte Indonesia in December 2024, a collaboration with the Ministry of Communication and Digital (Komdigi) aimed at training one million Indonesians in AI-specific skills by 2025. Within three months of its launch, the program has partnered with 18 organizations from various sectors to provide widespread AI training across the country.
Microsoft Chairman and CEO Satya Nadella announced an investment of US$ 1.7 billion (Rp 28 trillion), which includes cloud infrastructure development and artificial intelligence expansion in Indonesia. This investment aims to enhance cloud and AI infrastructure while fostering the development of digital talent across various industries.
With the launch of Azure Indonesia Central, Microsoft is strengthening its position in Indonesia’s competitive cloud market, facing major competitors such as Amazon Web Services (AWS) and Google Cloud, both of which have also expanded their presence in the country. The presence of this cloud region will help businesses and government institutions comply with data sovereignty regulations, particularly in sectors such as finance and public services that require local data storage.
The establishment of Microsoft's data center in Indonesia marks a significant milestone in the development of the country's digital ecosystem. In addition to accelerating cloud technology adoption, this data center will provide substantial economic benefits, create job opportunities, and support digital transformation across multiple sectors. With substantial investment and a commitment to AI and cloud skill development, Microsoft is not only strengthening its market position but also helping Indonesia emerge as a key player in the rapidly evolving digital era.
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