Microsoft Unveils Plans for Malaysia Cloud Region

Microsoft, a leading American multinational technology company, has unveiled plans to establish its first cloud region in Malaysia. The project will include three data centers, set to begin operations by mid-year.

The announcement follows nearly a year after Microsoft revealed a $2.2 billion investment in Malaysia, aimed at strengthening its cloud and AI services.

Laurence Si, Managing Director of Microsoft Malaysia, shared details about the new data centers, collectively called the Malaysia West cloud, during a press conference.

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He stated that the facilities would be located within the greater Kuala Lumpur area and are scheduled to commence operations in the second quarter of 2025.

However, the company has not disclosed the capacity of these data centers.

When asked about challenges related to U.S. export controls on semiconductor chips, Si noted that Microsoft is actively monitoring the situation.

He added, “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 within our region, that continues to stay on track.”

In May 2024, Microsoft announced a $2.2 billion investment over four years to bolster its digital services within Malaysia.

Laurence Si further stated that this initiative is expected to generate $10.9 billion in revenues over the next four years, alongside the creation of over 37,000 jobs.

He emphasised the broader impact of this development, stating, “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.”

REUTERS/ Chidimma Gold