Microsoft Malaysia has announced it will launch its first cloud region in the country, comprised of three data centres, by the second quarter of 2025.
The move comes nearly a year after the tech giant revealed a $2.2 billion investment in Malaysia, solidifying its commitment to expanding cloud and artificial intelligence services in Southeast Asia.
The data centres, collectively known as the Malaysia West cloud region, will be situated in the greater Kuala Lumpur area, according to Laurence Si, managing director of Microsoft Malaysia.
According to Reuters, Si made the announcement at a press conference on Thursday, detailing the company’s progress in establishing its cloud infrastructure.
While Microsoft did not disclose the specific capacity of the data centres, the launch signifies a significant step in enhancing Malaysia’s digital infrastructure.
Amidst global concerns regarding US export controls on semiconductor chips, questions arose about potential challenges in exporting necessary components to Malaysia. Si addressed these concerns, stating that Microsoft is actively monitoring the situation.
“At this point, everything is status quo for us. We do have a good relationship with all the various stakeholders. Everything that we intend to invest and go live with in our region, that continues to stay on track,” he affirmed.
The initial $2.2 billion investment, announced in May 2024, is part of a four-year plan to bolster Microsoft’s cloud and AI presence in Malaysia. Si further elaborated on the broader economic impact of these investments, estimating that Microsoft’s commitments would generate $10.9 billion in revenues and create over 37,000 jobs within the same timeframe.
“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,” Si stated.
In January, Microsoft announced plans to invest $80 billion in the construction of AI-enabled data centers during its fiscal year 2025
In a blog post, Microsoft Vice Chair and President Brad Smith revealed that over half of this $80 billion investment will be directed towards data center development within the United States. Microsoft’s fiscal year 2025 concludes in June.
The surge in demand for AI capabilities, driven by the rapid adoption of generative AI tools like OpenAI’s ChatGPT, has prompted major technology companies to invest heavily in Nvidia GPUs. Microsoft, having invested over $13 billion in OpenAI, provides crucial cloud infrastructure and integrates OpenAI’s models into its products.
In the first quarter of fiscal 2025, Microsoft reported $20 billion in capital expenditures and assets acquired under finance leases globally, with $14.9 billion allocated to property and equipment. Chief Financial Officer Amy Hood indicated that capital expenditures would continue to rise in the second quarter.
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