Microsoft’s Pours $2.2 Billion into Malaysia: A New Era for Southeast Asian Tech

Microsoft will invest $2.2 billion over the next four years in Malaysia’s new cloud and artificial intelligence infrastructure, and it will work with the government to establish a national AI center, CEO Satya Nadella said on Thursday.

It is the single biggest investment made by Microsoft in Malaysia as the tech behemoth looks to strengthen backing for AI research both locally and globally.

“We are dedicated to ensuring that all Malaysians gain from the AI revolution,” he 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.”

Microsoft’s Next Big Step: Expanding in the Southeast

During his trip to Southeast Asia, Nadella announced a significant investment of $1.7 billion in cloud and AI services during his visit to Indonesia. On Wednesday, it was announced that Microsoft would construct its first regional data center in Thailand.

In April, the IT giant said that it had invested $1.5 billion in G42, an artificial intelligence firm based in Abu Dhabi, and $2.9 billion in investments in Japan.

By 2025, Microsoft aims to provide artificial intelligence training to 2.5 million individuals in Vietnam, Malaysia, Indonesia, the Philippines, and Thailand.

Nadella was informed at a prior meeting with Prime Minister Anwar Ibrahim that the investment would be crucial in advancing Malaysia’s AI capabilities, as desired by the government.

As to Anwar’s Facebook post, the extra money will be used to establish a national AI center of excellence, train 300,000 more artificial intelligence professionals, improve cybersecurity in Malaysia, and support the growth of the nation’s developer community.

Microsoft has expanded its already massive cloud computing operations and plunged itself into the AI area along with OpenAI, the brains of ChatGPT.

Microsoft said that the Malaysian investment would support its 2021 strategy to promote equitable economic development. The planned national AI center would facilitate the deployment of AI in major businesses and the public sector and ensure compliance to AI governance and regulations.

Trade Minister Zafrul Aziz said: “We are excited about the prospect of generating additional prospects for our small and medium-sized enterprises and enhancing employment opportunities with higher wages for our citizens as we leverage the AI revolution to accelerate Malaysia’s digitally empowered growth trajectory in collaboration with Microsoft.”