technology

Microsoft Reportedly Postpones Data Center Project In Indonesia

Technology company Microsoft is reported to have postponed or stopped data center construction projects in several countries, including Indonesia. 

Reported by Engadget on Saturday, the project announced in January 2025 has an investment value of 80 billion US dollars (Rp1,324 trillion). 

Microsoft's new data center is planned to be built in several places such as Indonesia, England, Australia, and the United States, specifically in Illinois, North Dakota, and Wisconsin. 

The delay of this project in some places is a decision to withdraw from the negotiation process, while others are related to the postponement of the previously planned construction schedule. 

This data center is projected to be the main backbone in Microsoft's efforts to develop artificial intelligence (AI)-based services. 

Despite adjustments in the field, Microsoft representatives stated that the company remains committed to the planned budget of 80 billion US dollars for data centers during the 2025 fiscal year. 

The figure was previously announced via a blog by Microsoft Vice Chair and President Brad Smith which was published a few days before President Donald Trump's inauguration. In the piece, Smith said that the United States has a "unique opportunity" to advance an AI policy vision, and Microsoft is ready to take part in that journey. 

Speculation has arisen that Microsoft's move may have been prompted by President Trump's new tariff policy this week. The policy has the potential to increase the cost of building large infrastructure such as data centers. This situation is also said to have contributed to uncertainty in the financial markets. 

In addition to the tariff policy factor, this change could also reflect a decrease in the projected demand for AI services that had previously been anticipated. 

Microsoft is predicted to still spend $80 billion as planned, but it is likely that the number of data center locations that are successfully built will be fewer than initially estimated. 

Tag: Data Center Project In Indonesia Microsoft Technology