Could Indonesia be on the cusp of a $2.5bn data centre investment from Microsoft?



Indonesia Indonesia

Microsoft could be heading to Indonesia to join the likes of Amazon’s AWS and Google Cloud as the influx in the Southeast Asia market becomes even more apparent.

Numerous sources including Channel Asia reported that Microsoft (NASDAQ: MSFT) is weighing up the decision to build data centres in Indonesia.

While addressing the media at a Summit in Jakarta recently, it was reported that the President of Indonesia Joko Widodo said that Microsoft wants to invest immediately in Indonesia and the country will work on the regulations to support the investment.

The plan for Microsoft to invest in Indonesia is not new. In 2011, it was reported that the software giant was looking to invest around $2.5 billion in Indonesia to develop cloud-computing systems, an official said.

Back then, Sutanto Hartono, former President Director/Country General Manager of Microsoft Indonesia, said it had plans to partner with Telekomunikasi Indonesia (Telkom), Astra Graphia Information Technology, cloud-computing infrastructure firm Greenview and Infynis System Indonesia for the initiative.


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In 2019, China and Hong Kong led the APAC market in terms of data centre development, followed by India, Australia, Japan, and Singapore.

Apart from these countries, Indonesia, Thailand, and Malaysia made a sizable contribution toward growth.

The data centre industry in Indonesia has been growing and is expected that it will expand further owing to the rising number of data centres, the surge in demand for local data centres, the entrance of global data centre companies in the country, additional services provided by the companies such as cloud services, data recovery, security services, cross-connect, and others, according to analysts at Ken Research.

Some of the key players that have made noise in the country recently include DCI Indonesia who began the construction of its third data centre facility in Indonesia in November 2019, and NTT Communications Corp developing its Jakarta data centre set to go live this year.

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