One Year of Indonesia Central: Driving Innovation, Empowering the Nation and Beyond

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For most Indonesians, the cloud feels invisible. It powers everyday moments like sending messages, making payments, joining meetings, storing files, and training AI models without ever being seen. It feels instant, weightless, and abstract.

But the cloud is not floating above us; it is grounded in physical infrastructure called datacenter regions. In one of Indonesia’s key industrial corridors, this infrastructure has taken shape through Microsoft’s Indonesia Central Cloud Region, which quietly supports organizations across the country as they store data securely, run applications, and increasingly, build and deploy innovative AI solutions closer to home.

Indonesia Central, Microsoft’s first datacenter region in the country, remains largely out of sight by design. Unlike the consumer and enterprise technologies it supports, cloud & AI infrastructure is not meant to be noticed. Datacenters are among the most restricted and protected buildings in the world. They are designed to be resilient, secure, and dependable. Yet, its impact is anything but invisible. Every day, they underpin financial transactions, business operations, digital public services, and the growing use of AI across industries.

One year after its launch, it is an opportune moment to reflect not just on what has been built, but on what it takes to keep Indonesia Central running.

A Rare Look Inside

Its nondescript exterior contrasts sharply with what lies within. Past the extensive security perimeter, the space opens into long, orderly rows of server racks. Indicator lights flicker steadily across the aisles, a constant reminder that data is in motion even when the room itself feels still. These servers are the working core of the cloud: storing information, processing requests, and supporting the AI models that organizations across Indonesia rely on every day.

What stands out, however, is not the hardware itself, but the environment built around it. Thousands of processors – CPUs and GPUs – operate continuously, generating enormous thermal output, similar to how laptops heat up when working too hard. If that heat is not removed, equipment performance degrades. As computing power increases, particularly for AI workloads, so does the heat generated by the systems that run them. Managing it is fundamental to keeping the cloud reliable.

At Indonesia Central, cooling and airflow are carefully engineered into the system itself. Rather than relying solely on traditional approaches, the infrastructure uses advanced cooling methods, including direct-to-chip liquid cooling, to remove heat efficiently while minimizing unnecessary resource use. In simple terms, instead of consuming cooling resources once and then discarding them, many of these systems operate in controlled loops, circulating and reusing them to maintain stable operating conditions, ensuring no water is lost through evaporation.

“The common assumption is that liquid cooling uses more water than air cooling, but the opposite is true. Air cooling relies on evaporation to dissipate heat, and that evaporation consumes water continuously. Liquid cooling, by contrast, operates as a closed loop with no evaporation. The same water circulates through the system for up to seven years without needing to be replaced,” said Alistair Speirs, General Manager for Azure Infrastructure at Microsoft.

As computing systems become more powerful in the AI era, the demand for cooling increases significantly. Infrastructure must evolve alongside these demands, ensuring that higher performance does not come at the cost of efficiency or sustainability.

“Water stewardship is central to how we design and operate our datacenter. Our existing datacenter is designed to operate at higher temperatures, reducing water consumption and enabling us to use water more efficiently than other datacenters. At the same time, we have begun rolling out next-generation datacenter designs that use zero water for cooling, powered by advanced chip-level cooling methods. These designs eliminate the need for evaporative cooling,” continued Alistair.

Built To Endure

If cooling keeps systems performing, power keeps everything running. A datacenter region like Indonesia Central depends on a level of energy reliability far beyond conventional facilities. The infrastructure does not rely on a single source; it is designed in layers, so that if one system is interrupted, another takes over instantly and seamlessly.

Powering this responsibly is enabled through long-term collaboration with local partners. In Indonesia, this takes shape through Microsoft’s 10-year partnership with Perusahaan Listrik Negara (PLN), which supports the delivery of 200 MW of renewable energy into the grid. Beyond renewable energy, operational resilience also depends on backup systems that run on lower-carbon alternatives like biofuel, reflecting a broader shift to reduce environmental impact while maintaining reliability, even as demand grows.

Indonesia Central is supported by its own high-voltage substation, an approach more commonly associated with heavy industry. It is one of several signals that the infrastructure of the AI era will look less like server rooms and more like the backbone of a country.

“Partnering with PLN marks an important milestone in advancing sustainability commitments in Indonesia. The 10-year agreement will deliver 200MW of solar power in the country. We’re not only securing renewable energy for our operations but helping accelerate the country’s transition to a cleaner grid, while supporting Microsoft’s goal to be carbon negative by 2030,” shared Noelle Walsh, President, Cloud Operations & Innovation, Microsoft.

Sustainable and Secure by Design

Sustainability extends beyond energy systems into daily operations. Practices include recycling wood packaging into household furniture, repurposing concrete waste for village roads and housing foundations, redirecting food waste from the on-site canteen to local community farming, sourcing local rebar and concrete supplies to reduce transport-related CO2 emissions, and supporting water resilience projects with Yayasan Rumah Energi through rainwater harvesting.

Security is engineered with the same rigor. Protection within the datacenter region is designed across multiple dimensions – physical, digital, and procedural. Physical safeguards control how the space is accessed and monitored. Digital systems ensure that the data remains isolated, encrypted, and protected at all times. Procedural protocols guide how people interact with the data, with strict emphasis on accountability in daily operations and limited authorization in controlled areas. Security here goes beyond guards, gates, and cameras, aligned with Microsoft’s broader principle of trust.

The People Behind the Machines

Indonesia Central is not only about the technology. It is a story about people.  

Inside, a team of 99 highly specialized professionals on-site, including technicians, electrical engineers, and operations experts keep the region running. Programs like the Nusantara Datacenter Academy (NDCA) are designed to create pathways into similar technical careers, combining classroom learning with real-world experience. To date, dozens of students have participated, with more expected as the program expands.

Beyond individual programs, Microsoft has also expanded its focus to broader digital and AI skilling initiatives across Indonesia.

Through the Microsoft Elevate program, the company is working with partners across the government, education, and industry sectors to equip individuals with the skills needed to thrive in an increasingly AI-driven economy. Together, these programs reflect a shared objective: not only to build infrastructure in Indonesia, but also to ensure that Indonesians can build careers on top of it.

“Indonesia has strong digital momentum and projected datacenter growth. At the same time, modern datacenter operations require specialized capabilities, including cybersecurity and AI expertise. The next logical step to build and scale the talent is then ensuring that local vocational skill pathways, certifications, and academic programs keep pace with the growth. That is why we pair infrastructure investment with workforce development through initiatives such as partnering with the NDCA or through our very own skilling program, Microsoft Elevate. These ensure that economic value stays local, and that digital growth translates into skilled local employment”, said Dharma Simorangkir, President Director, Microsoft Indonesia.

Ultimately, the true measure of cloud and AI infrastructure is in how it is used. Since its launch, Indonesia Central has supported organizations across key sectors – including telecommunications, healthcare, energy, and banking – as they migrate to the cloud and build AI solutions closer to home.

In the financial services sector, Bank Negara Indonesia (BNI) Finance migrated more than 200 terabytes of mission-critical data and over 100 application services to Microsoft Azure and the Indonesia Central datacenter region within just two months, enabling stronger security controls while supporting local data residency requirements. In education, Universitas Terbuka is using Azure OpenAI Service to develop AI Tutor capabilities supporting more than 100,000 students across 500 classes, helping create more scalable and personalized digital learning experiences across Indonesia. Together, these organizations reflect what Microsoft refers to as Frontier Firms: early movers reshaping their industries with AI to transform how they operate, innovate, and serve communities.

It is a story unfolding across Asia. From Malaysia and Thailand to Japan and India, Microsoft is expanding datacenter regions to bring AI capacity closer to where it is needed. Indonesia Central is one of the most ambitious chapters of that regional build-out, and a milestone in the company’s USD1.7 billion commitment announced in 2024 to accelerate Indonesia’s AI economy.

As demand for cloud and AI continues to grow, Indonesia Central will focus on scaling responsibly, balancing performance, sustainability, and security, while continuing to invest in people and partnerships.

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Image 1. An aerial view of Microsoft’s Indonesia Central datacenter region (Source: Microsoft)