Tech giant Microsoft on Tuesday officially announced its first cloud region in Indonesia.
The new cloud region, Indonesia Central, is now available for businesses, government entities, and developers through the Microsoft Azure portal.
“Indonesia is a strategic location in Microsoft’s global cloud footprint,” said Scott Guthrie, Microsoft’s executive vice president, cloud + AI, during his speech at the launch event in Jakarta.
Microsoft will continue to scale capacity in the region, supporting innovation through platforms like the newly updated Azure AI Foundry, which delivers AI tools, datasets, and high-performance infrastructure. The tech giant operates over 70 Azure regions globally, including Malaysia, Thailand, and Singapore.
Located in West Java, the region consists of three independent availability zones, each equipped with its own power, cooling, and networking to ensure high availability and disaster recovery capabilities. This infrastructure is designed to support mission-critical applications and services with increased resilience and low-latency connectivity for users across Southeast Asia.
Meutya Hafid, Indonesia’s Minister of Communication and Digital Affairs, said, “This marks more than just an infrastructure deployment, it represents a long-term commitment to Indonesia’s digital economy. We welcome this as a meaningful contribution to strengthening our national digital backbone, with an anticipated economic impact of $2.5 billion over the next four years,” she said.
“According to the Global Connectivity Index, every 20% increase in digital infrastructure investment contributes up to 1% in GDP growth,” Hafid added.
The launch is part of Microsoft’s broader $1.7 billion investment commitment, announced in April 2024. It is expected to create 60,000 jobs by 2028 and generate $3.79 billion in broader economic value, supporting sectors such as healthcare, education, agriculture, and the creative economy.
Indonesia’s digital economy GMV is projected to reach $130 billion by 2025, according to the e-Conomy SEA 2024 report by Google, Temasek, and Bain & Co. As digital consumption surges, demand for scalable and secure cloud infrastructure has become foundational to economic growth.
Indonesia’s data centre power demand is expected to reach 180 gigawatts by 2030, up from 79 gigawatts this year, showing the need for more energy-efficient and AI-optimised technologies, per ministry data.
Indonesia also brings significant natural advantages to support the long-term sustainability of cloud infrastructure, including an estimated 207 gigawatts of solar and 29 gigawatts of geothermal potential. The data centre market is projected to grow from $2.39 billion in 2024 to $3.79 billion by 2030, driven by rising domestic digital demand and strong investor confidence in Indonesia’s policy consistency and infrastructure readiness.
