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Microsoft to invest $1.7 billion in Indonesia for cloud and AI expansion TradingView News
Microsoft is set to invest $1.7 billion over the next four years to expand its cloud services and artificial intelligence capabilities in Indonesia, CEO Satya Nadella announced on Tuesday during his visit to Jakarta.
This significant investment includes the construction of new data centers as part of Microsoft's broader strategy to improve its AI infrastructure in the region.
Nadella's strategic stops in Southeast Asia
Jakarta marks the first stop on Nadella's tour through Southeast Asian countries, where he is promoting the US company's generative AI technology.
Following her commitments in Indonesia, Nadella is expected to travel to Malaysia and Thailand later in the week.
This trip highlights Microsoft's commitment to deepening its technology footprint in Southeast Asia.
Microsoft talks with Indonesian leaders
During his visit, Nadella met with outgoing President Joko Widodo and several ministers to discuss opportunities for joint AI research and talent development.
Communications Minister Budi Arie Setiadi shared that President Widodo proposed that Microsoft consider locating its data centers in Bali or the new capital, Nusantara, currently under construction in Borneo.
Training and development objectives
Continuing its commitment to education and skills development in the region, Microsoft aims to train 2.5 million people in Southeast Asia in the use of AI by 2025, including 840,000 in Indonesia.
This initiative is part of Microsoft's global effort to support the development of AI, which includes a $2.9 billion investment in Japan for cloud and AI infrastructure and a $1.5 billion investment of dollars in UAE-based AI company G42.
Global technological leadership and local impact
Nadella's visit to Jakarta comes just two weeks after Apple Inc CEO Tim Cooks met with President Widodo, during which discussions on a possible manufacturing plant in Indonesia took place.
These high-level commitments highlight Indonesia's growing importance as a key market for large technology companies, driven by its large, tech-savvy population.
Microsoft's third-quarter revenue largely driven by AI adoption
The announcement follows Microsoft's recent financial success, with the company beating Wall Street estimates for third-quarter revenue and profit, largely fueled by the adoption of artificial intelligence in its cloud services.
This positive financial backdrop supports Microsoft's aggressive investment strategy in emerging technology markets like Indonesia.
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