Microsoft announced that it will invest $1.7 billion (€1.58 billion) in the next four years in cloud and artificial intelligence (AI) infrastructure in Indonesia.
CEO Satya Nadella said the new generation of AI is reshaping how people live and work on a tour of Southeast Asia. It marks the company's single largest investment in Indonesia.
"The investments we are announcing today – spanning digital infrastructure, skilling, and support for developers – will help Indonesia thrive in this new era,” Nadella said.
Microsoft runs one of the world’s largest cloud computing operations and has taken a significant step into artificial intelligence by incorporating an AI chatbot into its search engine, Bing.
Its earnings report on Thursday said profit rose 20 per cent for the January-March quarter as it tries to position itself as a leader in applying AI technology to make workplaces more productive.
The company sees Southeast Asia as a growing market and a possible location for more AI development.
A study by Kearney, a global consulting firm, said that AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030, of which Indonesia is expected to capture $366 billion (€341 billion).
The investment announced Tuesday will include AI training for 840,000 people, as well as support for Indonesia’s growing community of tech developers.
Indonesia is home to the third-largest developer community in the Asia-Pacific region after India and China.
More than 3.1 million developers in Indonesia use GitHub, a Microsoft-owned platform for software development, collaboration, and innovation. It is projected to be one of the top five developer communities on GitHub globally by 2026.
