In another move to strengthen its foothold in Southeast Asia, Microsoft has announced a $2.2 billion investment in Malaysia. This investment, the largest in Microsoft's 32-year history in the country, aims to advance cloud and AI infrastructure, create skilling opportunities, establish a national AI Center of Excellence, and enhance Malaysia's cybersecurity capabilities.
Microsoft Chairman and CEO Satya Nadella, during his visit to Kuala Lumpur as part of his Southeast Asia tour, emphasized the company's commitment to Malaysia's AI transformation. "We are committed to supporting Malaysia's AI transformation and ensure it benefits all Malaysians," Nadella said. "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."
The investment includes building essential cloud and AI infrastructure to meet the growing demand for cloud computing services in Malaysia. This will enable the nation to capitalize on the economic and productivity opportunities presented by the latest AI technology.
In addition to infrastructure, Microsoft will provide AI skilling opportunities for an additional 200,000 people in Malaysia, including technical and vocational education and training students, women in cybersecurity, and young people from underserved communities. This commitment builds on Microsoft's recent success in providing digital skills to more than 1.53 million Malaysians as part of the Bersama Malaysia initiative.
Microsoft will also partner with the Malaysian government to establish a national AI Center of Excellence and enhance the nation's cybersecurity capabilities. Collaborations with various government agencies, such as the Ministry of Investment, Trade and Industry, Cradle, and the Malaysia Digital Economy Corporation, will drive AI adoption across key industries and pioneer AI use in the public sector.
Furthermore, Microsoft will support the growth of Malaysia's developer community through initiatives like AI Odyssey, which aims to help 2,000 Malaysian developers become AI subject matter experts. Many Malaysian organizations, including Agroz, Doctor2U, Pandai, PETRONAS, Perumahan Rakyat 1Malaysia, and Prudential, are already leveraging Microsoft's generative AI-powered solutions to boost productivity and accelerate innovation.
Malaysia's Prime Minister Anwar Ibrahim and Trade Minister Zafrul Aziz welcomed Microsoft's investment, recognizing it as a key support pillar for the government's goal to enhance AI capacity and create more opportunities for businesses and people in Malaysia.
Microsoft's move in Malaysia follows similar announcements in Indonesia and Thailand as part of Nadella's Southeast Asia tour. The company revealed a $1.7 billion investment in Indonesia and plans to open its first regional data center in Thailand.
These investments are part of Microsoft's broader strategy to expand its support for AI development globally, with recent initiatives also including major investments in Japan ($2.9 billion) and the United Arab Emirates-based AI firm G42 ($1.5).
AI is expected to significantly contribute to Southeast Asia's economic growth. According to a study by Kearney, AI could add nearly $1 trillion to the region's GDP by 2030, with Malaysia poised to capture $115 billion of this amount.
Microsoft has also committed to providing AI skilling opportunities for 2.5 million people in ASEAN member states by 2025, including Malaysia, Indonesia, the Philippines, Thailand, and Vietnam.