Microsoft have invested $2.2bn in Malaysia to establish a national AI Center of Excellence. Credit: Shutterstock/gumbao

The Asia-Pacific (APAC) region is rapidly emerging as a global AI powerhouse, with strategic investments fuelling its ascent.

Leading tech companies pouring billions of dollars into the region to accelerate cloud and AI adoption is indicative of the immense potential and opportunities in this dynamic market.

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This evolution, driven by the region’s growing technological capabilities and robust digital infrastructure, is reshaping the region’s AI landscape, according to research and analysis company GlobalData.

Tejal Hartalkar, senior disruptive tech analyst at GlobalData, said: “The influx of AI and cloud investments in APAC signals more than a temporary boom. It is a significant realignment that could position the region at the forefront of AI innovation.”

GlobalData’s filing database reveals that the APAC region has been a hotbed of AI investments in recent months.

With the support of tech giants and the region’s strong economic and technological foundations, APAC is set to lead the way in AI and cloud adoption.

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Hartalkar continues: “Countries like Singapore, Malaysia, Indonesia, and Thailand are leveraging strategic investments to build AI-driven economies. The substantial backing from big techs aimed at accelerating cloud and AI adoption in APAC is a testament to the region’s capability to attract and execute large-scale technology projects.”

Key investments in the area include companies like Microsoft, Amazon, Google, and NVIDIA, with companies such as NEXTDC investing in a new data centre in Asia to take advantage of the extra computational power needed to fuel AI.

Microsoft has invested $2.2bn in Malaysia to establish a national AI Center of Excellence and enhance cybersecurity, $1.7bn in Indonesia for data centres and AI skilling for 840,000 individuals, and $2.9bn in Japan for expanding hyperscale computing and AI training for over three million people.

Amazon announced a $12.7bn cloud investment in India by 2030 and plans to establish a new infrastructure region in Taiwan by early 2025 to meet the high demand for cloud services.