Microsoft has announced it will invest $1.7 billion over the next four years into cloud and AI infrastructure in Indonesia.

The tech giant said this investment, the largest in the company’s 29-year history in Indonesia, will help achieve the Indonesian government’s Golden Indonesia 2045 vision and allow Microsoft to meet the growing demand for cloud computing services.

“This new generation of AI is reshaping how people live and work everywhere, including in Indonesia. The investments we are announcing today - spanning digital infrastructure, skilling, and support for developers - will help Indonesia thrive in this new era,” said Satya Nadella, chairman and CEO at Microsoft.

Budi Arie Setiadi, minister of communications and IT in Indonesia, added: “I am confident this partnership will open up new horizons for Indonesia, positioning us not only as consumers of technology but as pivotal contributors to the global technological supply chain.”

Microsoft announced plans to develop an Indonesian cloud region in Jakarta in February 2021 and is currently building data centers in the greater Jawa Barat region. The company hasn't specified how the new funding will further its previously announced build-out in the country.

Companies already using Microsoft cloud and AI solutions include Dana, an Indonesian fintech company; PT Kereta Api, a public railway operator; and Telkomsel, an Asian telco firm.

Other cloud companies operating, or planning to operate, in Indonesia include Huawei, Google, Alibaba, Tencent, and AWS.

Earlier this month, Indosat partnered with Nvidia for a $200m AI center in Indonesia.