Microsoft launched on Tuesday, May 27, 2025 the Indonesia Central Cloud Region, marking its first data center cluster in the country expected to significantly accelerate Indonesia’s digital transformation and economic growth, with the potential to contribute US$2.5 billion (Rp41 trillion) to the national economy.

The establishment of this cloud region forms part of Microsoft’s US$1.7 billion (Rp28 trillion) investment in cloud infrastructure and artificial intelligence (AI) in Indonesia was announced by CEO Satya Nadella in April 2024.

“This investment is not merely an infrastructure expansion; it’s a catalyst for national development, with the potential to create up to 60,000 new jobs by 2028,” Minister of Communication and Digital Application (Komdigi), Meutya V. Hafid, said during the inauguration ceremony on Tuesday.

The minister also expressed hope that Microsoft’s goal of training one million Indonesians in digital skills, in partnership with the government, would be fully achieved. Currently, over 840,000 individuals have participated in AI training programs.

According to Meutya, the launch reflects two major indicators of progress. First, it shows strong global confidence in Indonesia’s increasingly consistent and collaborative digital policy direction. Second, it signals that Indonesia is ready to actively shape and manage advanced technologies like cloud computing and AI − not just as a user, but as a strategic partner in building a sustainable digital ecosystem.

Indonesia is also seen as an increasingly relevant location for global-scale cloud infrastructure. Studies indicate that the local data center market is projected to grow from US$2.39 billion in 2024 to US$3.79 billion by 2030, driven by both domestic and global demand.

With its strategic location on major global connectivity routes and abundant renewable energy resources − 207 GW from solar and 29 GW from geothermal − Indonesia is well-positioned to become a hub for sustainable and environmentally friendly data centers.

Dharma Simorangkir, President Director of Microsoft Indonesia, described the launch as a pivotal moment for the nation’s digital future.

“Indonesia Central Cloud Region empowers individuals and organizations not just to scale from the world to Indonesia, but more importantly, from Indonesia to the world,” he said.

The new cloud region will be part of Microsoft’s global network of over 60 cloud regions. A cloud region is a group of data centers providing public cloud services − such as computing power, storage, and applications − accessible via the internet by multiple users. Examples include Microsoft Azure, Google Drive, and Gmail.