Jakarta ( WNAM MONITORING ): Minister of Communication and Digital Affairs, Meutya Hafid, has said that she expects the launch of the first data center by US technology company Microsoft in Indonesia to have a real economic impact on the community.
Microsoft’s first data center is part of the company’s investment commitment worth US$1.7 billion to Indonesia for 2024.
“Indonesia expects Microsoft’s planned investment of US$1.7 billion in the cloud and artificial intelligence sector to not only function as an infrastructure expansion but also as a catalyst for national development,” she said on Tuesday.
According to Hafid, the investment has the potential to generate 60 thousand jobs by 2028.
The project is also expected to create one million digital talents, who will be trained by Microsoft under a partnership with her ministry.
“We welcome this launch as part of our contribution to strengthening the national digital infrastructure. Indonesia Central Cloud Region is part of Microsoft’s long-term investment commitment in the country,” she said.
She added that the presence of the central cloud region reflects two important things: the private sector’s trust in the direction of government policy in the digital sector, and Indonesia’s readiness to manage advanced technologies such as cloud and artificial intelligence (AI).
She then highlighted that Indonesia is on a strategic trajectory to strengthen its role as a center of the digital economy in the Asia-Pacific. Thus, a stable policy direction and infrastructure readiness must continue to be improved.
Indonesia is also an increasingly relevant location for the development of a cloud region on a global scale, she added.
This is evident from several studies, which show the market value of Indonesia’s data centers would grow from US$2.39 billion in 2024 to US$3.79 billion by 2030.
She said that this growth will not merely be driven by global demand, but also high need for domestic digital services.
Indonesia also has a data center advantage, considering its location. Besides being on the main route of global connectivity, the country has significant renewable energy potential—207 gigawatts (GW) from solar power and 29 GW from geothermal energy.
Therefore, it has the potential for the development of sustainable data centers that are environmentally friendly.
Given these aspects, the minister is committed to supporting the sustainability of digital infrastructure development, including data centers, in Indonesia.
She then expressed her readiness to support Microsoft after the launch of the Indonesia Central Cloud Region, including in AI education.
