Microsoft, the American technology giant, has announced plans to establish its first cloud region in Malaysia. This project involves the construction of three data centers, with operations slated to begin in mid-2025.
This announcement comes nearly a year after Microsoft revealed a $2.2 billion investment in Malaysia, aimed at bolstering its cloud and artificial intelligence (AI) services. The data centers, collectively known as the Malaysia West cloud, will be located in the greater Kuala Lumpur area.
Laurence Si, Managing Director of Microsoft Malaysia, shared these details during a press conference, noting that the facilities are on track to become operational in the second quarter of 2025. The company has not yet disclosed the specific capacity of these data centers.
Addressing the potential challenges related to U.S. export controls on semiconductor chips, Si stated 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 a four-year period to enhance its digital services in Malaysia. Si further stated that this initiative is projected to generate $10.9 billion in revenue over the next four years, alongside the creation of more than 37,000 jobs. He emphasized the broader impact of this development, saying that the project will allow, “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.”
