Microsoft has officially launched its first data centre in Indonesia, a major investment that strengthens the country’s digital infrastructure and positions it as a growing hub for cloud technology in Southeast Asia.
The Indonesia Central Cloud Region, unveiled on Monday in Jakarta, was inaugurated by Minister of Communication and Digital, Meutya Hafid, who represented President Prabowo Subianto at the ceremony.
Government officials hailed the launch as a turning point in the country’s digital transformation. Meutya said the facility demonstrates global confidence in Indonesia’s tech policies and readiness to manage advanced systems such as artificial intelligence and cloud computing.
“This is a testament to our commitment to digital sovereignty and technological progress,” Meutya said at the event.
Microsoft’s investment is expected to contribute US$2.5 billion to the economy and create 60,000 jobs by 2028. The company also plans to train 1 million Indonesians in digital skills, with over 840,000 already engaged in AI capability-building programmes.
Indonesia now ranks as the second-largest data centre market in Southeast Asia, with 84 facilities, just behind Singapore’s 99. Microsoft’s entry adds momentum to a trend led by major tech firms, including Amazon and Google, which have also expanded their cloud operations in the region.
Southeast Asia remains an underpenetrated market, with cloud infrastructure still lagging behind mature economies. Indonesia’s renewable energy potential and strategic location provide a compelling alternative to land-constrained Singapore.
Regulatory pressure to localise data storage is a major driver of the region’s digital infrastructure boom. Countries like Indonesia are enforcing laws that require in-country data processing, prompting global firms to establish local operations.
The Southeast Asian data centre market is forecast to grow from $10.23 billion in 2023 to $17.73 billion by 2029. Microsoft’s $1.7 billion investment underscores how data centres act as economic catalysts, stimulating job creation and supporting a wider ecosystem of industries.
The region’s monthly data usage is projected to triple by 2025, fuelling further expansion of cloud infrastructure and related services.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ