Microsoft to Invest $2.2 Billion in Cloud and AI in Malaysia

Microsoft announced this morning that it will pour $2.2 billion into Malaysia over four years to build out the country’s cloud and AI infrastructure.

“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians,” Microsoft CEO Satya Nadella said. “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.”

Mr. Nadella announced the investment at Microsoft Build: AI Day today in Kuala Lumpur, Malaysia, describing it as the largest-ever Microsoft investment in the country. Key components of this initiative include building a cloud and AI infrastructure in Malaysia, creating AI skilling opportunities for an additional 200,000 people in the country, strengthening Microsoft’s partnership with the Government of Malaysia to establish a national AI Center of Excellence and enhancing the nation’s cybersecurity capabilities, and supporting the growth of Malaysia’s developer community.

The infrastructure piece builds on a 2021 initiative that included plans to build Microsoft’s first datacenter region in the country. But the growing demand for cloud computing services in Malaysia required a bigger investment. “Microsoft’s investment will help accelerate the adoption of generative AI, building a pipeline of AI-driven startups, and benefitting our economy through increased productivity and higher wages,” Malaysia minister of economy YB Rafizi Ramli said.

Separately, Microsoft announced it will build its first datacenter in Thailand. And it is investing a further $1.7 billion in its cloud computing infrastructure in Indonesia, where it is building a data center as well.