Microsoft Announces Significant Investment in Malaysia’s Tech Sector
KUALA LUMPUR (March 20, 2025) – Microsoft Corp., along with its partners and clients, is projected to generate US$10.9 billion (RM48.3 billion) in new revenue between now and 2028. This economic boost is expected to result from the launch of its hyperscale cloud region, the Malaysia West Cloud Region, located in Kuala Lumpur. According to research commissioned by Microsoft and conducted by IDC, the initiative is also anticipated to create 37,575 new jobs in Malaysia over the same period, including 5,700 skilled roles in information technology (IT).
Microsoft’s Malaysia West Cloud Region is set to boost the country’s tech sector.
Microsoft stated in a press release on Thursday that the Malaysia West Cloud Region “will provide organizations across Malaysia with access to Microsoft’s most trusted and comprehensive cloud technologies, enabling them to scale operations, enhance efficiency, and strengthen digital resilience.” The first Microsoft cloud region in Malaysia is scheduled to become operational by the second quarter of 2025. Once live, customers will have access to the full suite of Microsoft Cloud services, including Microsoft Azure, Microsoft 365, and Dynamics 365/Power Platform.
The region will feature three availability zones, which are distinct physical locations. These zones are designed to provide low-latency connections while being sufficiently separated to minimize potential risks from local outages or severe weather. Each zone will operate with independent power, cooling, and networking infrastructure to ensure high availability and business continuity. The Malaysia West Cloud Region will also integrate with Microsoft’s global wide area network, allowing for high-bandwidth, low-latency connectivity with other Microsoft cloud regions worldwide.
Laurence Si, managing director of Microsoft Malaysia, highlighted the crucial role the new cloud region will play in the nation’s growing artificial intelligence (AI) economy. He stated, “Local businesses and organizations 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.”
Dr. Andrew Lau, Microsoft Malaysia’s director of strategic programs, added that the Malaysia West Cloud Region will allow Malaysian companies to scale their innovations and offer global businesses a technologically advanced gateway into the country. He further noted, “We are optimistic that the new cloud region will enhance the country’s global competitiveness in a rapidly evolving digital landscape, propelling Malaysia to be at the forefront of an AI-powered future.”
This new investment builds on Microsoft’s previous announcement of a US$2.2 billion commitment in May 2024 to accelerate Malaysia’s cloud and AI ambitions, as revealed by Microsoft chairman and chief executive officer Satya Nadella.
