Microsoft CEO Satya Nadella's tour across Southeast Asia has concluded, having visited three key countries: Indonesia, Thailand, and Malaysia, as part of the company's strategic outreach efforts in the region.
The company announced plans to cultivate 2.5 million individuals across Southeast Asia with AI skills by 2025, spanning Thailand, Indonesia, Malaysia, the Philippines, and Vietnam.
First stop: Indonesia
Nadella's journey commenced in Indonesia, where Microsoft announced a substantial investment of US$1.7 billion into the nation on April 30th. This investment is set to bolster the country's digital transformation efforts, focusing on expanding cloud services and advancing AI capabilities.
The company's regional pledge to train 2.5 million talents with AI skills entails approximately 840,000 individuals in Indonesia. In addition, plans for establishing data centers were discussed, with potential locations suggested by Indonesian President Joko Widodo, such as Bali or the future capital, Nusantara.
Bloomberg has reported during Nadella's stop in the country, the Microsoft CEO told hundreds of local attendees in Jakarta that AI is going to be the next major bend in the curve of GDP growth. "This is going to have a real impact even in Indonesia where we will have in the region 10%-12% extra growth," Nadella says.
Second stop: Thailand
Transitioning to Thailand, Nadella announced a new data center will be built in the country while jointly attending the company's AI Day event on May 1st with Thai Prime Minister Srettha Thavisin. Nadella also reiterated Microsoft's 2025 AI talent pledge, aiming to bolster 100,000 talents capable of controlling AI tools in the country.
Nadella signed a cooperation memorandum with the Thai government that aligns with the country's ambitious vision for a digital-first, AI-driven future, as outlined in the country's "Ignite Thailand" plan. The goal is to build Thailand into a regional digital economic center by 2030 through further innovation and stronger R&D capabilities.
The collaboration aims to strengthen sectors like tourism by leveraging AI tools to enhance visitor experiences and drive economic growth. The Thai government announced in 2023 that it will increase the tourism GDP to 25% of the national GDP.
Last stop: Malaysia
The tour concluded in Malaysia on May 2nd, where Nadella announced a significant investment of US$2.2 billion in the country's digital infrastructure. This investment encompasses the development of essential infrastructure for cloud computing and AI services, along with extensive training programs designed to equip 200,000 individuals with AI skills as part of the pledge.
This is Microsoft's largest investment in Malaysia in its 32-year history. Notably, Microsoft established its first data center in Malaysia in 2021. Throughout the tour, Nadella emphasized Microsoft's long-term commitment to Southeast Asia and its belief in the transformative power of AI.
By partnering with governments and investing in digital infrastructure and talent development, Microsoft aims to accelerate the region's digital transformation journey, driving sustainable growth and fostering innovation across various sectors. Microsoft cites data from research firm Kearney, indicating that by 2030, AI is expected to contribute US$1 trillion to the GDP of the Southeast Asian region, with Indonesia poised to capture $366 billion, Thailand $117 billion, and Malaysia $115 billion.
