Tencent plans to invest $500M in Indonesia to boost cloud infrastructure

Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) intends to establish its third internet data center in Indonesia, as it expands its collaboration with Alibaba (NYSE:BABA) and GoTo Group to develop cloud infrastructure in the Asian country.

Indonesian e-commerce company GoTo said on Sunday that it signed agreements — which were unveiled at a ceremony at the Indonesia-China Business Forum in Beijing — with Tencent Cloud, and Alibaba Cloud to boost cloud infrastructure and digital talent development in Indonesia.

Tencent’s potential third internet data center in Indonesia is part of a new commitment worth about $500M in infrastructure, resources, and investment in the country by 2030, GoTo noted.

Through the investment, the company intends to empower local enterprises with advanced cloud and AI solutions.

Alibaba Cloud already has three data centers in Indonesia and has partnered with local institutions to train around 400,000 people in cloud computing and AI, according to the companies.

Alibaba Cloud plans to double this number to 800,000 by 2033 and intends to set up a Skills Centre at Universitas Indonesia to offer training as part of its Alibaba Cloud Academic Empowerment Program, GoTo added.

The commitments from Tencent and Alibaba are based around the two companies’ cloud services contracts with GoTo.

“This commitment aligns with the Indonesian government’s vision for Indonesia Emas 2045 (Golden Indonesia 2045) and underscores Tencent’s commitment to partnering Indonesia in its digital transformation journey to tap the immense potential of the AI revolution to empower local enterprises with reliable cloud and AI-powered solutions,” said Poshu Yeung, senior vice president, Tencent Cloud International.

GoTo noted that all three companies will work closely with the Indonesian government.