MALAYSIA: Microsoft has announced plans to launch its first Malaysian cloud region, marking a significant milestone in its 33-year presence in the country. Set to go live in the second quarter of 2025, the Malaysia West cloud region will be strategically located in Greater Kuala Lumpur and will feature three new data centres.
This investment is expected to generate US$10.9 billion (S$14.54 billion) in new revenues between now and 2028, according to an International Data Corporation (IDC) study commissioned by Microsoft. Additionally, it will create over 37,000 new jobs, including 5,700 skilled IT positions, further strengthening Malaysia’s digital economy.
With this development, Microsoft aims to accelerate the adoption of cloud computing and artificial intelligence (AI) across industries while ensuring compliance with Malaysia’s local data residency regulations.
Driving economic growth and job creation
The Malaysia West cloud region is not just a technological advancement; it represents a major economic boost for the country. Microsoft’s cloud infrastructure will provide businesses with access to advanced computing capabilities, allowing them to scale their operations, enhance efficiency, and build digital resilience.
The US$10.9 billion revenue impact extends beyond Microsoft itself, benefiting local businesses, partners, and cloud users across various sectors. The creation of 37,575 new jobs underscores the transformative potential of this initiative, with a strong emphasis on equipping Malaysians with the skills needed for a digital economy.
Laurence Si, managing director of Microsoft Malaysia, emphasised the long-term impact of the investment. “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,” he said, as published by Microsoft.
Boosting AI adoption and digital resilience
Beyond infrastructure, Microsoft is actively investing in upskilling Malaysians to prepare for the AI-driven future. In December 2024, the company launched the AI for Malaysia’s Future (AIForMYFuture) initiative, which aims to train 800,000 Malaysians in AI-related skills by the end of 2025. This builds upon Microsoft’s Bersama Malaysia initiative, which has already provided digital skills training to over 1.53 million Malaysians.
These efforts align with Microsoft’s broader vision of fostering an inclusive digital economy. By equipping Malaysians with the necessary skills, Microsoft is ensuring that the benefits of cloud computing and AI extend beyond large enterprises to startups, subject matter experts (SMEs), and individual professionals.
Enhancing data security and regulatory compliance
According to Microsoft, a key advantage of the new cloud region is its ability to meet Malaysia’s strict data residency and security requirements. With businesses increasingly relying on cloud solutions, concerns over data sovereignty have grown. The Malaysia West cloud region will allow organisations to securely store and process data within the country, ensuring compliance with local regulations.
This is particularly crucial for industries such as finance, healthcare, and government services, where data privacy and security are top priorities. By providing localised cloud infrastructure, Microsoft is enabling businesses to leverage advanced cloud computing while maintaining control over sensitive information.
Strengthening collaboration with the Malaysian government
Microsoft’s investment aligns closely with Malaysia’s national digital transformation goals. The company has been working closely with the government to support infrastructure development, innovation, and talent growth.
In May 2024, Microsoft chairman and CEO Satya Nadella announced a separate US$2.2 billion investment to fuel Malaysia’s cloud and AI ambitions. This partnership underscores the country’s strategic importance in Microsoft’s Southeast Asian expansion plans.
Dr Andrew Lau, director of strategic programmes for Microsoft Malaysia, highlighted the broader implications of the investment: “As Microsoft commits to transforming Malaysia’s cloud and AI infrastructure, the upcoming Malaysia West cloud region will enable Malaysian companies to scale their innovation in a more seamless way while offering global businesses a gateway into Malaysia with integrated technological readiness.”
”We are optimistic that the new cloud region will enhance the country’s global competitiveness in a rapidly evolving digital landscape, propelling Malaysia to be at the forefront of an AI-powered future,” Dr Lau concluded.
A step towards making Malaysia a regional digital hub
With the launch of the Malaysia West cloud region, Microsoft is positioning Malaysia as a key player in the regional cloud and AI ecosystem. As businesses increasingly adopt cloud solutions, the presence of a local Microsoft cloud region enhances Malaysia’s appeal as a digital hub for Southeast Asia.
This move not only supports the country’s economic goals but also strengthens its position in the global technology landscape. By providing world-class cloud infrastructure, Microsoft is ensuring that Malaysian businesses remain competitive in an era defined by digital transformation.
A major leap for Malaysia’s digital economy
The establishment of Microsoft’s first Malaysian cloud region marks a defining moment in the country’s digital journey. By driving US$10.9 billion in new revenues, creating thousands of jobs, and advancing AI adoption, this initiative will have long-lasting economic and technological benefits.
For businesses, this means access to cutting-edge cloud solutions with improved data security and regulatory compliance. For job seekers, it presents new opportunities in the fast-growing tech sector. And for Malaysia as a whole, it is a step closer to becoming a leading digital economy in Southeast Asia.
Read also: Samsung to roll out One UI 7 in Malaysia from April 14, bringing AI-driven personalisation
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