Microsoft Unleashes Its First Cloud Region in Malaysia — $10.9 Billion in AI Growth Expected!
Kuala Lumpur, May 28, 2025 — Microsoft officially opened its first cloud region in Malaysia, West Malaysia, marking a significant move in Malaysia’s digital and AI revolution. Unveiled at the Microsoft AI Tour in Kuala Lumpur, the new region will provide scalable, AI-enabled cloud infrastructure spread across three availability zones, catering to data residency, high security, and ultra-low latency.
Strategically located in Greater Kuala Lumpur, Malaysia West provides connectivity to offerings such as Microsoft Azure, Microsoft 365, and an expanding set of business applications. It enables organizations to innovate more securely and sustainably, building an inclusive AI-fostered digital economy.
YB Gobind Singh Deo, Malaysia’s Minister of Digital, said in a recorded speech,“With this cloud region, we can leverage the latest digital and AI technologies to move up the value chain, and the Government has set the stage, developing a world-class, trusted digital environment for businesses to thrive, aligned with Microsoft’s Trusted Cloud Principles. Together, let us seize this opportunity to surge ahead and solidify Malaysia’s position as a regional leader in the digital and AI economy.”
Scott Guthrie, Executive Vice President, Cloud + AI, Microsoft said, “Microsoft is committed to being Malaysia’s partner in its AI transformation. The Malaysia West cloud region will deliver world-class AI datacenter infrastructure and enable organizations to accelerate their innovation more securely – creating a future that is inclusive, sustainable, and AI-ready.”
Large customers, including PETRONAS, FinHero, SCICOM, SIRIM, and TNG Digital, already have a presence in the new region. The partnership with PETRONAS, in particular, supports Malaysia’s national AI strategy, promoting data sovereignty and innovation.
The economic impact is staggering. IDC estimates that the Malaysia West cloud region will generate US$10.9 billion in additional revenue by 2028 and create nearly 37,000 new jobs, including approximately 6,000 specialized IT jobs.
Simultaneously, Microsoft launched BINA AI Malaysia, a program to drive AI adoption and talent building. One of the main thrusts is the development of the National AI Innovation Center, to be established in partnership with EY, the Ministry of Digital’s National AI Office, and the PETRONAS Leadership Centre.
Laurence Si, Managing Director, Microsoft Malaysia said, “With Microsoft’s new Malaysia West Cloud Region now on local soil, we are thrilled about the vast opportunities this will bring for our customers across the enterprise, public sector, and startups to become faster, more agile, and more innovative than ever. Beyond infrastructure, we are committed to delivering digital and AI skills to every Malaysian through the AIForMYFuture initiative, supporting the nation’s vision of becoming a regional digital leader.”
In addition, the AIForMYFuture program aims to skill 800,000 Malaysians by the end of 2025. With 400,000 trained so far, Microsoft will continue to collaborate with regional organizations, such as the Biji-biji Initiative and TalentCorp, to provide greater access to future-proof AI learning.
The rollout reflects Microsoft’s investment in enabling Malaysia as a regional champion for digital transformation, data sovereignty, and equitable AI development.
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