Microsoft Expands Cloud Presence in Malaysia
Microsoft has launched its first cloud region in Malaysia, dubbed Malaysia West, in the Greater Kuala Lumpur area. This new cloud region features three availability zones and is designed to cater to the country’s growing need for local data storage solutions.
The launch enables Malaysian organizations to access a range of Microsoft services, including Azure and Microsoft 365, as well as tools for computing, storage, cybersecurity, and data analytics. By providing local cloud infrastructure, Microsoft aims to reduce latency and enhance performance for users across the country.

Malaysia’s Minister of Digital, YB Gobind Singh Deo, welcomed the development, stating that it supports the government’s goal of advancing the country’s digital economy through the adoption of digital and AI technologies. Microsoft’s Scott Guthrie, head of the company’s Cloud and AI division, noted that the cloud region is designed to support Malaysia’s AI initiatives and provide organizations with the tools needed to build more secure systems.
Several major companies, including PETRONAS, FinHero, SCICOM Berhad, Senang, SIRIM Berhad, TNG Digital, and Veeam, have already begun utilizing the new infrastructure. According to IDC estimates, the Malaysia West region could generate approximately US$10.9 billion in the next four years, with around 17% of that figure coming directly from the region. The research firm also projects that over 37,000 new jobs could be created, including nearly 6,000 skilled IT roles.
In addition to the cloud region launch, Microsoft introduced BINA AI Malaysia, a program aimed at supporting local AI development. As part of this initiative, the company plans to establish a National AI Innovation Centre in Malaysia to boost AI strategies, build tools, and train talent for future roles. Microsoft is collaborating with EY, the National AI Office under the Ministry of Digital, and the PETRONAS Leadership Centre to explore ways in which the centre can support real-world AI projects and foster local talent.
This development builds on Microsoft’s earlier US$2.2 billion investment to support cloud and AI goals in the country. To further enhance Malaysia’s AI workforce, Microsoft launched the AIForMYFuture programme in December 2024, with the goal of training 800,000 people in AI-related skills by the end of 2025. As of now, 400,000 individuals have received some form of training through this initiative.
Microsoft Malaysia’s Managing Director, Laurence Si, stated that the cloud region provides customers with access to local infrastructure, while the skills programme aims to prepare more Malaysians for jobs in the AI sector.