Microsoft Announces a $2.2 Billion Investment in Malaysia for AI and Cloud Infrastructure

Microsoft has announced that it will invest $2.2 billion to build digital infrastructure for AI and cloud computing in Malaysia, said CEO Satya Nadella, who is on a tour of Southeast Asia and has also visited Thailand and Indonesia to announce investments in cloud services, data centers, and artificial intelligence.

Microsoft pledges the largest single investment in Malaysia

This is the largest investment from Microsoft in Malaysia, as the Windows maker is looking for market expansion and is utilizing the region’s potential for AI development. Nadella said that the company is committed to supporting the Malaysian transformation through AI and will try its best to ensure that all Malaysians get the benefits of it. He added,

“Our investments in digital infrastructure and skilling will help Malaysian businesses, communities, and developers apply the latest technology to drive inclusive economic growth and innovation across the country.”

Nadella, on his visit to Indonesia on Tuesday, also announced an investment in AI services and cloud computing with an amount of $1.7 billion, and on Wednesday, he announced the construction of Microsoft’s first regional data center in Thailand as his second stopover during his swift visit to the region.

Back in April, the tech behemoth revealed its plans to invest $2.9 billion in Japan and $1.5 billion in Abu Dhabi-based investment group G42, which is one of the Middle East’s largest investment groups and was recently under US scrutiny because of some ties to Chinese firms.

Southeast Asia has enormous potential

The investment in Malaysia will be done over the next four years, and along with infrastructure construction, Microsoft will also train 200,000 people in Malaysia and enhance the country’s cybersecurity abilities by working with the government. 

Along with Malaysians, Microsoft has also pledged to train a total of 2.5 million people in the region, including the Philippines, Vietnam, and Indonesia, until 2025, as the company sees the 600 million population of Southeast Asia as a growing market and a suitable location for AI services and product development. 

Malaysian Trade Minister Zafrul Abdul Aziz welcomed the Microsoft initiative for AI, saying,

“Microsoft’s development of essential cloud and AI infrastructure, together with AI skilling opportunities, will significantly enhance Malaysia’s digital capacity and further elevate our position in the global tech landscape.” 

He also said,

“Together with Microsoft, we look forward to creating more opportunities for our SMEs and better-paying jobs for our people as we ride the AI revolution to fast-track Malaysia’s digitally empowered growth journey.” 

Source: Microsoft.

Microsoft noted that the investment in Malaysia is part of its 2021 program to support economic growth. While the skill development will be carried out in partnership with governments, business organizations, non-profits, and communities in Malaysia, which is built upon its success in upskilling 1.53 million Malaysians in the Bersama Malaysia Initiative (together with the Malaysia Initiative).