Microsoft Postponed to Build Global Data Center, What Impact on the Indonesia Project?
It is reported that Microsoft has stopped or promulgated the construction of a number of its data centers in various countries globally, which also includes Indonesia.
According to a Bloomberg report, internal sources revealed projects in North Dakota, Wisconsin, Illinois, as well as in the UK, Australia, and Indonesia experiencing delays or temporary suspensions in discussions and development schedules.
In certain areas, Microsoft slows down construction projects that have already started. For example, his party stopped work activities in part of their data center complex which is located approximately one hour away from Jakarta.
Responding to the report, Microsoft in Indonesia confirmed that the Azure cloud area development project will continue according to the original schedule.
“The Microsoft cloud area in Indonesia, namely the central region of the Indonesian cloud, is still running according to schedule to be launched in the second quarter of 2025,” said a representative from Microsoft to Lidahtekno.co.id, Tuesday (8/4).
Now, Microsoft aims to make the first data center in Indonesia, namely the Indonesian Central Cloud Region, to start operating during the second quarter or between April to June. The construction of the facility began in 2021.
President Director of Microsoft Indonesia Dharma Simorangkir stated that the Central Cloud Region called Central Indonesia will be a component of the company’s global series. This giant company has operated more than 60 cloud areas around the world.
Outside Indonesia, Microsoft has confirmed there are some adjustments in its data center scheme; However, they have not provided much detail about the majority of the project.
We set up the capacity requirements of our data centers in advance to ensure that there are adequate facilities in appropriate locations,” said a Microsoft representative as reported by Bloomberg, Thursday (3/4). us.
The technology giant from New Mexico has reportedly canceled talks over its planned data center facility in Chicago, USA. In addition, Microsoft also suspended plans to improve at the Mountain Pleasant location, Wisconsin. Nonetheless, a Microsoft spokesperson said that the company still persists in its commitment to a $3.3 billion project package in Wisconsin.
It was also reported that Microsoft had retreated from talks about leasing land to build its data center in the UK, precisely in the area between London and Cambridge. This center is planned to accommodate NVIDIA chips. Additional information is that the company also stopped negotiating with their data centers around the Chicago area.
Even so, Microsoft said it was still determined to plan around US$80 billion in the construction of a data center until the end of their fiscal year which reached June. In addition, the company also revealed that capital expenditure for its infrastructure in the upcoming fiscal year will most likely decrease.
