- Microsoft plans to invest $1.7 billion in cloud and AI infrastructure in Indonesia.
- CEO Satya Nadella visited Indonesia this week The investment is the largest in Microsoft's 29-year history in the country.
- Apple's Tim Cook also appears to be eyeing the country as a potential manufacturing base.
Microsoft is the latest tech giant to eye up Indonesia as a new business hub.
This week the company said it would invest $1.7 billion over the next four years in cloud and AI infrastructure in Indonesia.
"This new generation of AI is reshaping how people live and work everywhere, including in Indonesia," Microsoft CEO Satya Nadella said on Tuesday. "The investments we are announcing today — spanning digital infrastructure, skilling, and support for developers — will help Indonesia thrive in this new era."
According to a blog post from Microsoft, the investment will help the government achieve its Golden Indonesia 2045 Vision, which focuses on various aspects of development, including economic, cultural, and political.
Microsoft cited a growing demand for cloud computing services in Indonesia as part of the reason for its investment.
According to research from consulting company Kearney, AI could add up to $366 billion to Indonesia's GDP and nearly $1 trillion to Southeast Asia's GDP by 2030.
Apple CEO Tim Cook also appears to be eyeing Indonesia — the world's fourth most populous nation with about 280 million people.
Last month, he met with Indonesian President Joko Widodo in Jakarta. Later, Cook said Apple would "look at" manufacturing in the country as it looks to reduce its reliance on China.
Apple did not immediately respond to a request for comment from Business Insider, made outside normal working hours.
The Indonesian president suggested that Microsoft base its new data centers on Bali or the country's new capital city, Nusantara, Reuters reported.
Indonesia is building the capital at a cost of some $35 billion because Jakarta is partially sinking due to overextraction of groundwater and rising sea levels.
Nadella also made stops in Malaysia and Thailand on a tour of Southeast Asia this week. Microsoft will invest in AI infrastructure in Thailand and build an Azure data center there.
