Microsoft Opens First Cloud Region in Indonesia for 2025, Dubbed “Indonesia Central,” Ushering in a New Era for AI and Digital Innovation

Microsoft officially opened its first cloud region in Indonesia, named “Indonesia Central,” marking a major milestone in the nation’s digital transformation journey and Microsoft’s strategic expansion in Southeast Asia. This AI-ready hyperscale cloud infrastructure brings in-country data residency, robust security, and low-latency cloud services to Indonesian businesses, government entities, and developers, positioning the country as a rising global digital powerhouse.

A $1.7 Billion Investment to Power Indonesia’s Digital Ambitions

The launch is part of Microsoft’s $1.7 billion investment commitment for Indonesia between 2024 and 2028, the largest in the company’s nearly three-decade history in the country. This investment aims to accelerate Indonesia’s vision for AI and digital transformation, supporting the government’s Golden Indonesia 2045 initiative and fostering a sustainable, innovation-driven economy.

Scott Guthrie, Executive Vice President of Microsoft Cloud & AI, emphasized the significance of the new region:

“Indonesia’s vision for AI and digital transformation requires trusted infrastructure as its foundation. With the launch of Indonesia Central cloud region, we are bringing the full power of Microsoft cloud closer to Indonesian innovators—empowering every developer, every organization, and every government institution to innovate locally and scale globally.”

Economic Impact: Billions in Value and Thousands of Jobs

According to IDC’s latest study, Microsoft, its partners, and cloud-using customers are projected to generate $15.2 billion in new economic value between 2025 and 2028, with the Indonesia Central cloud region accounting for 16.5% of that impact. The region is also expected to create over 106,000 new jobs across sectors such as manufacturing, finance, communications, services, and government during the same period.

Indonesian officials have welcomed the move as a testament to the country’s readiness to manage advanced cloud and AI technologies—not just as users, but as active partners in shaping a sustainable digital ecosystem.

Cutting-Edge Infrastructure and Services

Located in West Java, the Indonesia Central region features three independent availability zones, each equipped with its own power, cooling, and networking to ensure high availability and disaster recovery. The infrastructure is built with security and sustainability at its core, supporting mission-critical applications and delivering low-latency connectivity for users across Southeast Asia.

The region already offers a comprehensive suite of Microsoft Azure services, with Microsoft 365 Copilot expected to become available in the first half of the year and Microsoft Azure OpenAI Service and Microsoft’s business applications to follow later. This empowers organizations to innovate across industries while ensuring compliance with local data residency and security requirements.

Rapid Adoption by Leading Indonesian Organizations

More than 100 organizations have already onboarded to the Indonesia Central cloud region, including major names like Adaro, BCA, Binus University, Manulife, Pertamina, Telkom Indonesia, and Siloam Hospitals. These organizations now benefit from local access to Microsoft’s global standards in security, compliance, and performance, enabling them to modernize operations and drive innovation at scale.

Indonesia’s Rise as a Regional Digital Hub

Indonesia now stands as Southeast Asia’s second-largest data center market, trailing only Singapore, with the launch of Microsoft’s new region further solidifying its status as a regional tech hub. The move is expected to catalyze further digital transformation, job creation, and economic growth, as well as support the government’s goal of training 1 million Indonesians in digital skills by 2028.

As regional data consumption is set to triple by 2025, Microsoft’s Indonesia Central cloud region is poised to play a pivotal role in powering the nation’s—and the region’s—AI-driven future.