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    Home » Blog » Microsoft’s $3.9B Southeast Asia cloud expansion targets Indonesia, Malaysia AI markets

    Microsoft’s $3.9B Southeast Asia cloud expansion targets Indonesia, Malaysia AI markets

    May 28, 2025Updated:May 28, 2025 Tech No Comments
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    Microsoft and Government representatives formally launch Indonesia Central cloud region.
    Indonesia’s Central Cloud Region is officially launched by Microsoft and state members. Microsoft deserves funds.

    By launching its first sky areas in Malaysia and Indonesia, Microsoft has considerably strengthened its dedication to Southeast Asia’s online potential.

    The presentations were made on May 27 and 28 as part of Microsoft’s AI Tour, which took place in Jakarta and Kuala Lumpur, both. Federal leaders, tech innovators, and significant businesses all attended these events, which highlights the growing significance of cloud computing and AI in the country’s financial and digital strategy.

    Microsoft introduces the sky area known as” Indonesia Central.”

    The recently launched” Indonesia Central,” a high-capacity cloud hub within the nation, aims to improve Indonesia’s information translation standards while also providing local businesses and government agencies with better performance and security.

    Indonesia’s “vision for AI and modern transformation requires trusted network as its basis,” according to the report. With the release of Indonesia Central sky area, according to Scott Guthrie, Microsoft’s executive vice president of Cloud &amp, AI, we are bringing the full potential of Microsoft sky to Indonesian innovators, enabling every developer, every organization, and every government institution to develop directly and size nationally.

    Microsoft has a$ 1.7 billion investment through 2028 in order to support this development. A number of important companies, ranging from vitality and financing to telecommunications, are now migrating to the fresh cloud platform. For example, Astra International is utilizing AI to optimize operations across its line of financial motorcycles.

    The presence of Microsoft’s fog area in Indonesia highlights two important things: first, that Indonesia is confident in its online strategy and second, that it is confident in its ability to manage cutting-edge technologies like AI, according to Meutya Hafid, the minister of communications and digital affairs for the president of Indonesia.

    The new information centers are carefully distributed across three zones to assure maximum presence and endurance, which contribute to Microsoft’s overall goal of reducing carbon emissions by this decade.

    Microsoft also makes investments in people, not just in system. Microsoft and the Ministry of Communications and Digital Affairs have collaborated to station 1 million Indonesians through raise, an AI-skilling program.

    Another group initiatives include the Nusantara Data Center Academy, a school that provides students with modern tools and training in a data center, and a Community Empowerment Fund, which provides support for schools that are close to data centres.

    More information from Microsoft

    Microsoft introduces the cloud region known as” Malaysia West.”

    Additionally, Microsoft has announced the launch of” Malaysia West,” its first cloud region in the nation, which is strategically located in the Greater Kuala Lumpur region. To provide high fault tolerance and unrestricted access to cloud services, the facility has three availability zones set up.

    The government has set the stage for creating a world-class, trusted digital environment for businesses, in accordance with Microsoft’s Trusted Cloud Principles, according to YB Gobind Singh Deo, Malaysia’s Minister of Digital, in a recorded message.

    This initiative is part of a$ 2.2 billion investment plan to improve Malaysia’s digital capabilities. With notable additions like PETRONAS and TNG Digital, well-known businesses from across different industries, including those in energy, fintech, and outsourcing, have already joined the ecosystem.

    The Malaysia West cloud region will provide world-class AI datacenter infrastructure, enabling businesses to accelerate their innovation more quickly, Guthrie predicted. This will create an inclusive, sustainable, and AI-ready future.

    Microsoft also unveiled BINA AI Malaysia, a program designed to promote national AI strategies and spur innovation. In conjunction with EY Malaysia, PETRONAS, and the National AI Office, it is establishing a National AI Innovation Center as part of this effort.

    Microsoft introduced AIForMYFuture, a program designed to train 800, 000 Malaysians by the end of 2025, to support workforce development. 400, 000 people have already been trained in AI-related skills as a result of the initiative.

    The economic effects

    By 2028, the Indonesia Central Cloud region is projected to create over 106, 000 jobs and generate US$ 15.2 billion in new economic value, according to an IDC report commissioned by Microsoft. Malaysia West is anticipated to generate US$ 10.9 billion in new revenue and support over 37, 000 jobs, including nearly 6, 000 IT positions, in the future.

    With these two product launches, Microsoft now has access to over 70 cloud regions on a global scale. The announcements show a deliberate effort to make Southeast Asia a crucial hub for the world’s AI and digital economy.

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