Microsoft will establish its first cloud region in Malaysia, located in Greater Kuala Lumpur, by the second quarter of 2025.
The new cloud region will feature three data centres, reported Reuters.
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According to a report commissioned by Microsoft, the company, its partners, and cloud-using customers are projected to generate $10.9bn in new revenues from 2025 until 2028.
The US software major added that this will drive local economic investment and facilitate the creation of 37,575 new jobs, including 5,700 IT positions.
The Malaysia West cloud region marks a “significant milestone” in Microsoft’s 33-year presence in the country, the release stated.
Once operational, it is expected to provide Malaysian organisations with access to Microsoft’s cloud technologies, enabling them to scale operations, increase efficiency, and enhance digital resilience.
The new cloud region will also comply with local data residency requirements, ensuring organisations can manage their data in accordance with government regulations.
Microsoft Malaysia managing director Laurence Si said: “With the rapid pace of innovation in Malaysia, the upcoming Malaysia West cloud region is not just a technological infrastructure, it is key to powering the nation’s growing AI economy. Local businesses and organisations will be able to innovate faster and more securely, driving the country’s progress towards becoming the hub for cloud and AI growth in Southeast Asia.
“As a trusted technology partner to the nation for 33 years, Microsoft is committed to supporting Malaysia’s digital journey through strategic investments in infrastructure, talent development, and innovation support – empowering every person and organisation to reap the benefits of the digital world.”
In addition to enhancing infrastructure, Microsoft stated that it seeks to expand skill development initiatives and deepen its collaboration with the Malaysian government.
In May 2024, Microsoft chairman and CEO Satya Nadella unveiled a $2.2bn investment to advance Malaysia’s cloud and AI ambitions.
By December 2024, the company launched the “AI for Malaysia’s Future” (AIForMYFuture) initiative, targeting AI skill development for 800,000 Malaysians by the end of 2025.
This effort builds on Microsoft’s previous initiatives in the country, including Bersama Malaysia, which has already equipped over 1.53 million Malaysians with digital skills.
In May 2024, Google also committed $2bn to establish its first data centre and Google Cloud region in Malaysia.
