Microsoft Secures 10-Year Renewable Energy Deal for Indonesia's AI-Powered Data Centres

Microsoft has signed a 10-year renewable energy deal with Indonesia's state-owned electricity provider, PT PLN. The agreement secures 200 MW of clean power for the company's data centres in the country, supporting the rising demands for AI and computing services.

The contract also includes 100 MW of solar energy, contributing to Indonesia's push for 4.68 GW of solar capacity by 2030.

Microsoft already operates data centres in Karawang, West Java, and is building a new facility in Indonesia. In May 2025, the company launched its second Azure region in the country, named Indonesia Central. The renewable energy deal will help power these sites, addressing the high energy needs of AI and cloud services.

The partnership with PT PLN reflects a broader trend in the region, where tech firms are turning to low-carbon electricity for data centres. Microsoft's stock saw a slight increase after the announcement, indicating investor confidence in the strategy.

Beyond Indonesia, Microsoft has also revealed plans for a new Azure region in Thailand, called Thailand South. As of February 2026, this site remains in private preview. No further details have been released about additional Southeast Asia expansions or their timelines.

By combining rapid infrastructure growth with renewable energy, Microsoft is setting an example for balancing expansion with environmental goals in the region.

The 200 MW deal ensures Microsoft's Indonesian data centres will run on cleaner energy for the next decade. It also supports the country's solar targets while meeting the rising power demands of AI and cloud computing. The agreement reinforces the company's commitment to sustainable growth in Southeast Asia's digital economy.