Microsoft to Launch First Cloud Region in Malaysia, Boosting AI & Digital Growth

Microsoft is all set to launch its first cloud region in Kuala Lumpur, Malaysia, by the end of the second quarter of 2025. According to a report by Reuters, the new cloud region will consist of three data centers.  

The news published by Microsoft narrates that the company is projected to generate $10.9 bn in new revenues by 2028 by joining hands with its partners and cloud-using customers. The organization is positive about opening the new region center because it will drive local economic investment and aid in creating 5700 IT positions out of  37,575 new jobs. 

The cloud region will start operations to provide Malaysian businesses superior access to Microsoft’s advanced cloud features which will help them expand their operations, enhance productivity, and protect their systems from cyber-threats. Businesses that follow local data residency regulations obtain the capability to manage their data according to official requirements, thus enhancing digital solution trust.

Laurence Si, Managing Director of Microsoft Malaysia, emphasized the significant transformations this investment will generate.

The Malaysia West cloud region is a vital component that accelerates Malaysia’s AI-powered digital economy because of its rapid technological innovation. Through this network expansion, Microsoft can help businesses optimize innovation and security while establishing Malaysia as a key center for cloud and AI development across the region.

Microsoft continues its intensified focus on developing skills as part of its talent development expansion. The AIForMYFuture initiative launched by the company in December 2024 sets the target of training 800,000 Malaysians in AI skills before 2025 concludes. Microsoft’s Bersama Malaysia program successfully provided digital skills education to 1.53 million Malaysians.

This commitment comes after Microsoft Chairman and CEO Satya Nadella made his $2.2 billion investment promise in May 2024 to speed up Malaysia’s cloud and AI aims.

Microsoft stands alongside Google as a provider of investment support to Malaysia through their $2 billion capital allocation for building their first facilities in that region.

Through these significant investments, Malaysia is a leading cloud computing and artificial intelligence innovation hub and digital transformation center in Southeast Asia.

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