Microsoft to invest US$2.2 billion in cloud and AI services in Malaysia

Kuala Lumpur, Malaysia — Microsoft is investing US$2.2 billion over the next four years in Malaysia’s new cloud and artificial intelligence infrastructure, as well as partnering with the government to establish a national AI hub, its CEO Satya Nadella said on Thursday. fair.

It is Microsoft’s biggest single investment in Malaysia, as the tech giant looks to bolster support for AI development in the region and around the world.

“We are committed to supporting the AI ​​transformation in Malaysia and ensuring it benefits all Malaysians,” he said. “Our investments in digital infrastructure and skills will help Malaysian businesses, communities and developers apply the latest technology to drive inclusive economic growth and innovation across the country.”

Nadella also announced on Tuesday a $1.7 billion investment in cloud and AI services in Indonesia during his visit to the country as part of his trip to Southeast Asia. On Wednesday, he said Microsoft will build its first regional data center in Thailand.

In April, the technology giant also revealed an investment of US$2.9 billion in Japan and US$1.5 billion in G42, an AI company in Abu Dhabi.

Microsoft has also committed to providing AI training to 2.5 million people in Malaysia, Indonesia, the Philippines, Thailand and Vietnam by 2025.

Nadella previously met with Prime Minister Anwar Ibrahim, who said the investment will be the main pillar of support for the government’s goal of improving AI capability in Malaysia.

The new investment will include AI training for another 300,000 people, the establishment of a national AI center of excellence, improving the country’s cybersecurity capabilities and supporting the growth of Malaysia’s developer community, Anwar said on Facebook.

Microsoft runs one of the largest cloud computing operations in the world and has made a leap into artificial intelligence through its partnership with OpenAI, developer of ChatGPT.

Since then, Microsoft has integrated an AI assistant into its Microsoft Edge browser called Copilot, helping it increase its profits by 20% in the first quarter.

Microsoft sees Southeast Asia, with its population of more than 600 million people, as a growth market and a potential location for further development of AI products. A study by global consulting firm Kearney said AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030. Indonesia is expected to capture $366 billion of the total and Malaysia $115 billion.

Microsoft said in a statement that the investment in Malaysia will build on its 2021 program to support inclusive economic growth. He said the proposed national AI center will boost AI adoption across key industries and the public sector while ensuring AI governance and regulatory compliance.

“Together with Microsoft, we hope to create more opportunities for our (small and medium businesses) and better paying jobs for our people as we harness the AI ​​revolution to accelerate Malaysia’s digital growth journey,” said Commerce Minister Zafrul Aziz. he said in the statement.