Microsoft Invests $2.2B in Malaysia’s Cloud, AI

Microsoft expands in Southeast Asia by investing $2.2B in Malaysia’s AI and Cloud services.

Microsoft has declared a four-year, $2.2 billion investment in Malaysia to expand its artificial intelligence (AI) and cloud services. 

As per a blog post, the investment represents the most substantial in the 32-year tenure of Microsoft in Malaysia. The investment encompasses the construction of cloud and AI infrastructure, providing AI-skilling opportunities for 200,000 individuals and encouraging the nation’s developers.

In addition, Microsoft intends to strengthen Malaysia’s cybersecurity capabilities and establish a “national AI Centre of Excellence” in partnership with the Malaysian government.  

After meeting with Microsoft CEO Satya Nadella on May 2, Malaysian Prime Minister Anwar Ibrahim stated that the investment is in line with Malaysia’s endeavors to augment its artificial intelligence capabilities. As he traveled to Kuala Lumpur, Nadella remarked:

“We want to make sure we have world-class infrastructure right here in the country so that every organization and startup can benefit.” 

Kearney, a global consulting firm, projects that artificial intelligence will contribute $1 trillion to the gross domestic product of Southeast Asia by 2030, with Malaysia capturing approximately $115 billion of that amount.

Microsoft strives to increase its global support for the advancement of artificial intelligence. This week, in addition to announcing a $1.7 billion investment in neighboring Indonesia, Nadella stated that Microsoft would establish its inaugural regional data center in Thailand. 

Microsoft declared an additional substantial financial commitment in Europe on February 20: a $2.1 billion pledge to augment its artificial intelligence and cloud infrastructure in Spain. This investment follows the February 15 announcement of an additional three billion euros commitment to develop the AI ecosystem in Germany.

Large technology companies are allocating resources to advance artificial intelligence (AI) in anticipation of the European Union’s forthcoming implementation of the landmark EU AI Act. 

Google announced the “AI Opportunity Initiative for Europe” in February. This initiative aims to invest 25 million euros ($26.9 million) in AI-sector skill development for Europeans. 

Google collaborates with academic institutions, enterprises, EU governments, and civil society to provide AI training for local startups. Funds are allocated to equip workers with the necessary skills to safeguard them against falling behind. 

The Italian government initiated a similar endeavor in 2023, wherein millions of euros were set aside to improve the digital proficiencies of laborers at risk of being laid off due to automation and AI.