Microsoft Launches First Indonesian Data Center, Projects $2.5 Billion Economic Boost
Key Takeaways
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JAKARTA, investortrust.id — Microsoft has officially launched its first data center in Indonesia—dubbed the Indonesia Central Cloud Region—marking a major milestone in the country’s digital transformation strategy. The U.S. tech giant estimates the initiative will generate an economic impact of Rp 41 trillion ($2.5 billion) over the coming years.
The symbolic launch took place on Tuesday, May 27, 2025, at The Ritz Carlton Pacific Place in Jakarta. Minister of Communication and Digital Affairs Meutya Hafid, speaking on behalf of President Prabowo Subianto, highlighted the project’s significance in bolstering both digital infrastructure and global investor confidence in Indonesia's digital policy landscape.
“This cloud region represents Microsoft’s long-term investment in Indonesia. We are optimistic that it will strengthen the digital ecosystem and drive an economic impact of $2.5 billion,” Meutya said.
Investment and Job Creation
Microsoft had previously announced an investment of $1.7 billion in Indonesia’s cloud and artificial intelligence (AI) sectors. The initiative covers both infrastructure development and workforce training, with projections indicating it will create 60,000 new jobs by 2028, mainly in the technology and digital services sectors.
Digital Talent Development
Beyond infrastructure, Microsoft has partnered with the government to build digital talent. Of the one million Indonesians targeted for cloud and AI training, 840,000 have already participated in various programs.
“Strengthening our digital workforce is crucial to maintaining Indonesia’s competitiveness in the global economic transition,” Meutya added. “We welcome collaborations that go beyond infrastructure, including education and AI talent development.”
Optimism for the Digital Economy
The data center launch comes amid growing optimism about Indonesia’s digital economy. The government projects the country’s digital Gross Merchandise Value (GMV) will surge from $90 billion in 2024 to $130 billion in 2025.
Indonesia’s strategic position and vast renewable energy potential—207 GW from solar and 29 GW from geothermal—also make it an attractive location for sustainable global-scale cloud development.
Long-Term Commitments
Microsoft emphasized that the data center is only the beginning of a broader long-term mission in Indonesia. The company plans to deepen cooperation with universities and educational institutions through the establishment of an AI Center and initiatives to accelerate the adoption of Hyper Cloud technology nationwide.