Microsoft launches first cloud region in Malaysia, AI innovation centre as part of US$2.2b investment
KUALA LUMPUR, May 28 — Microsoft today launched its first cloud region in Malaysia — the Malaysia West Cloud Region — as part of its US$2.2 billion (RM9.3 billion) investment in the country.
Announcing the initiative at the Microsoft AI Tour Kuala Lumpur, Microsoft Cloud + AI Group executive vice president Scott Guthrie said the new cloud region will feature three AI-ready availability zones located in the Greater Kuala Lumpur area.
'With the launch of the Malaysia West Cloud Region, we are providing a critical digital foundation for Malaysia to become a regional AI hub, enabling secure, scalable innovation aligned to national goals.
'We're building here not just because there's demand but because there's vision and leadership at the government and industry levels. Local creativity also gives us the confidence to invest not just in infrastructure but in long-term innovation,' Guthrie said during his keynote address at the Malaysia International Trade and Exhibition Centre (MITEC) today.
A Microsoft cloud region typically comprises hubs of data centres hosting the company's cloud services, such as Microsoft Azure, Microsoft 365, and Dynamics 365/Power Platform.
Availability zones have independent power, cooling, and networking infrastructure. If one zone experiences an outage, regional services, capacity, and high availability are supported by the remaining zones.
The Malaysia West Cloud Region will also connect to Microsoft's global wide area network (WAN), providing high-bandwidth, low-latency connectivity to other Microsoft cloud regions worldwide.
Apart from the cloud region, Microsoft's US$2.2 billion investment — the company's single largest in Malaysia, as announced by its chairman and CEO Satya Nadella last year — includes establishing the Microsoft National AI Innovation Centre.
Microsoft Malaysia managing director Laurence Si said the centre, part of the Bina AI Malaysia initiative, is a collaboration with Malaysia's National AI Office (NAIO) under the Digital Ministry and the Petronas Leadership Centre.
Si noted that Microsoft, together with the NAIO, has so far trained 400,000 Malaysians under the AI for Malaysia's Future (AIForMYFuture) initiative.
Launched in December 2024, the initiative aims to equip 800,000 Malaysians with AI-related skills by the end of 2025.
Meanwhile, Digital Minister Gobind Singh Deo expressed confidence that Microsoft's latest initiatives will solidify Malaysia's position as a regional leader in the digital and AI economy.
'The government has set the stage by developing a world-class, trusted digital environment for businesses to thrive through robust legal and regulatory frameworks, such as the recent amendments to the Personal Data Protection Act, the enactment of Malaysia's first cybersecurity act, and alignment with Microsoft's trusted cloud principles,' he said in a recorded speech.
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