Microsoft Indonesia recently signed a 10-year Power Purchase Agreement (PPA) with Indonesia’s state-owned electricity firm, PT PLN (Persero) for the supply of 200 megawatts (MW) of renewable energy which includes 100 MW of solar power, for the tech giant’s data center infrastructure.
“We have a 10-year renewable energy contract with PLN, up to 200 MW, some of which will be used to support data centers especially solar,” Noelle Walsh, Microsoft’s president of cloud operations reportedly said, based on Indonesian reports.
In 2024, Microsoft announced that it would invest US$1.7 billion (IDR 27.6 trillion) over four years for new cloud and AI infrastructure in Indonesia, as well as AI skills training opportunities for 840,000 people. At the time, the investment was said to be the largest single investment in Microsoft’s 29-year history in Indonesia.
In May 2025, Microsoft launched the Indonesia Central data center cluster or otherwise known as the Azure Region, which is the second in Southeast Asia after Singapore. Indonesia Central is located in West Java and has three interconnected availability zones.
Meanwhile, in Karawang, West Java, Microsoft has two data centers namely JK02 and JK09. JK 02 is already operational while JK09 is still under construction.
Walsh affirmed Microsoft’s stand that it would continue to invest in data center development in Indonesia and is focusing on robust data security and resilience by maintaining multiple redundant centers.
Industry observers noted that by securing reliable, low-carbon energy, Microsoft is solving infrastructure bottlenecks while preparing for projected growth in AI workloads.
Analysts suggest that Microsoft’s deal could accelerate renewable energy adoption in the region as other cloud providers mimic similar moves.