Google Cloud Expands AI Data Center in Jakarta; Predicted to Contribute US$88bn to Economy

TEMPO.CO, Jakarta - Google Cloud has announced an expansion of the computing capacity of its Jakarta Cloud Region. This large-capacity data center houses servers, silicon chips, storage devices, and networking equipment.

Google Cloud Indonesia Country Director Fanly Tanto said the Jakarta Cloud Region supports various essential services, ranging from vaccine research and development at PT Bio Farma (Persero) to learning and teaching needs at the Ministry of Education and Culture. The data center also supports digital banking systems, e-commerce, food delivery services, and more.

"This infrastructure acts as the brain and digital backbone," he said in a written statement on Wednesday, May 14.

The announcement on computing expansion comes ahead of the Google Cloud Summit Jakarta 2025 scheduled for May 22. According to Fanly, this move is also a continuation of a five-year program, when Google Cloud became the first global hyperscaler to launch a cloud region in Indonesia.

Public First, a public policy consulting firm, predicts the Jakarta Cloud Region will contribute Rp1,400 trillion (around US$88 billion) to the economy over the next five years. This computing expansion is also estimated to support an average of 240,000 jobs per year.

Since its launch in 2020, the Jakarta Cloud Region has contributed up to US$55 billion (around Rp900 trillion) to Indonesia's economy. It has also contributed to 92,000 jobs annually.

According to Fanly, the Jakarta Cloud Region functions as physical infrastructure providing high-performance services from Google Cloud. By migrating systems from on-premises to Google Cloud, Indonesian companies are claimed to save more than 20 percent annually on technology expenses. The savings can be used for data-driven and AI-based innovation.

Google Cloud provides access to large data analytics platforms such as BigQuery and Vertex AI. These services support the development of more than 200 AI models, including Google's Gemini, Anthropic's Claude, Meta's Llama, and DeepSeek. Organizations can also customize AI models to integrate into their workflows and respond only to data from trusted sources.

Google's private network, connected to the Jakarta Cloud Region, enables low-latency global connections with more than two million miles of fiber optic cables spanning 200 countries and territories. Local companies can expand their operations internationally via Cloud Wide Area Network (Cloud WAN), including to other cloud services such as Microsoft Azure, Amazon Web Services (AWS), and Oracle Cloud Infrastructure (OCI).

Serving three zones, Fanly guarantees the Jakarta Cloud Region meets data residency and reliability requirements according to national regulations. The transition to Google Cloud, he said, can reduce unplanned application downtime by more than 50 percent compared to previous on-premises systems.

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