Microsoft has announced a $2.2 billion investment over the next four years in Malaysia’s new cloud and artificial intelligence infrastructure. This includes partnering with the government to establish a national AI center, marking Microsoft’s largest investment in Malaysia to date.
Satya Nadella, Microsoft’s CEO, stated, “We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians. Our investments in digital infrastructure and skilling will help Malaysian businesses, communities, and developers apply the latest technology to drive inclusive economic growth and innovation across the country.”
Nadella also announced a $1.7 billion investment in cloud and AI services in Indonesia and revealed plans to build Microsoft’s first regional data center in Thailand. In April, Microsoft unveiled a $2.9 billion investment in Japan and a $1.5 billion investment in G42, an AI firm in Abu Dhabi. Microsoft has committed to providing AI training for 2.5 million people in Malaysia, Indonesia, the Philippines, Thailand, and Vietnam by 2025.
Prime Minister Anwar Ibrahim stated, “The new investment will include AI training for another 300,000 people, the establishment of a national AI center of excellence, enhancing the nation’s cybersecurity capabilities and supporting the growth of Malaysia’s developer community.”
Microsoft views Southeast Asia as a growing market and potential location for more AI product development. A study by Kearney suggested that AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030, with Indonesia expected to capture $366 billion and Malaysia $115 billion.
Microsoft’s investment in Malaysia will build on its 2021 program to support inclusive economic growth. The proposed national AI center will drive AI adoption across key industries and the public sector, ensuring AI governance and regulatory compliance.
Trade Minister Zafrul Aziz stated, “Together with Microsoft, we look forward to creating more opportunities for our (small and medium-sized enterprises) and better paying jobs for our people as we ride the AI revolution to fast-track Malaysia’s digitally empowered growth journey.”
