Microsoft Unveils New Cloud Region In Indonesia, But Retail Turns Skeptical

Microsoft Corporation (MSFT) has unveiled its inaugural cloud region in Indonesia, named Indonesia Central, marking a milestone in the company's expansion within Southeast Asia. 

This development was announced during Microsoft's AI Tour Jakarta. According to Microsoft, the Indonesia Central cloud region comprises three distinct availability zones built with independent systems for power, cooling, and networking. 

These zones are engineered to deliver high resilience and enable continuous operations, even during unexpected disruptions. 

Tailored for essential workloads, the infrastructure facilitates rapid data transfer and minimal latency for users throughout Southeast Asia. 

As part of Microsoft's worldwide network backbone, this cloud region ensures high-speed access to other data centers globally, empowering Indonesian firms to scale operations internationally and providing overseas companies access to the Indonesian market.

This new cloud region marks a key moment in Microsoft’s larger commitment to invest $1.7 billion in Indonesia’s cloud and AI capabilities through 2028. 

The aim of the effort is to support the rising demand for digital infrastructure in the country and unlock productivity gains fueled by artificial intelligence. 

IDC estimates Microsoft and its ecosystem will create $15.2 billion in economic value from 2025 to 2028, with the Indonesia Central cloud region contributing 16.5% and generating over 106,000 jobs.

The Indonesia Central cloud region now offers a broad range of Azure services, with Microsoft 365 Copilot and Azure OpenAI launching soon, helping businesses innovate while meeting data and compliance requirements.

At its 2025 Build conference recently, Microsoft introduced new AI tools to help developers create more intelligent, collaborative AI agents, highlighting a broader move toward AI integration.

On Stocktwits, retail sentiment around Microsoft turned to ‘bearish’ from ‘bullish’ the previous day.

Microsoft stock has gained over 8% year-to-date and 6% in the last 12 months.

Also See: Xiaomi Reports Record Revenue, Profit In Q1 Led By Smartphone, EV Sales: Retail Stays Optimistic

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