Microsoft announces its first cloud region in Malaysia, empowering more Malaysian organizations to accelerate AI innovation - Source Asia

(Photo above) Scott Guthrie, EVP, Cloud +AI, Microsoft, announces the general availability of Malaysia West – Microsoft’s first cloud region in the country – at the Microsoft AI Tour Kuala Lumpur on May 28, 2025 in Kuala Lumpur, Malaysia.

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Kuala Lumpur, 28 May 2025 – Microsoft announced the general availability of Malaysia West, its first cloud region in the country, marking a significant milestone in the company’s commitment to empowering Malaysia’s inclusive digital and AI transformation.  

The Malaysia West cloud region, strategically located in Greater Kuala Lumpur, will be an AI-ready hyperscale cloud infrastructure with three availability zones. It will offer Malaysian organizations access to scalable, available, and resilient cloud services coupled with in-country data residency, high levels of security, and lower latency.  

The cloud region will also provide customers with access to the most modern services for productivity, data analytics, cybersecurity, computing, and storage. This includes services such as Microsoft Azure and Microsoft 365, as well as Microsoft’s stack of business applications that will be available soon.  

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.” 

A diverse group of organizations, enterprises, and startups are already leveraging the Malaysia West cloud region. PETRONAS, Malaysia’s global energy and solutions provider will serve as the key partner in Malaysia West. By leveraging Microsoft’s trusted hyperscale cloud infrastructure, PETRONAS is geared to continue advancing its digital and AI transformation efforts. This collaboration reflects a strong alignment between both organizations in supporting national priorities, fostering innovation ecosystems, advancing data sovereignty, and building a resilient digital economy. 

Other customers using Microsoft’s new cloud region include FinHero, SCICOM Berhad, Senang, SIRIM Berhad, TNG Digital (the operator of TNG eWallet), and Veeam, along with more organizations expected to come onboard as demand for secure, scalable, and locally-hosted cloud services continues to grow across industries.   

The IDC projects broad economic and social benefits to be unlocked from the new Malaysia West cloud region. Over the next four years, Microsoft, its partners, and its cloud-using customers are projected to jointly generate US$10.9 billion¹ in new revenues, with the new cloud region accounting for approximately 16.9% of this new revenue total through 2028. In the same time frame, Microsoft, together with its partners and customers will add over 37,000 direct and indirect jobs. Out of these, nearly 6,000 are skilled IT jobs.  

Empowering born-in-Malaysia AI innovation  

At the Microsoft AI Tour in Kuala Lumpur, Microsoft also unveiled BINA AI Malaysia, an initiative to help drive the next phase of Malaysia’s AI transformation. Rooted in Microsoft’s vision to build the nation’s AI future, BINA AI Malaysia reflects Microsoft’s commitment to nation-building by not only providing infrastructure and trusted technological solutions, but also in partnering with stakeholders across industries to drive AI adoption and developing AI-ready talent.  

A key effort under this initiative includes progressing the establishment of the Microsoft National AI Innovation Center with the goal of advancing national AI strategies, fostering collaborations to accelerate AI adoption, and solving societal challenges through AI-powered solutions. To bring this initiative to life, Microsoft is exploring a collaboration with EY in Malaysia, Malaysia’s National AI Office (NAIO) under the Ministry of Digital, and PETRONAS Leadership Centre to set up the Center that will serve as a strategic hub for developing real-world solutions, nurture future-ready talent, and showcase the nation’s AI capabilities. The Center builds on Microsoft’s earlier announcement in 2024 to invest US$2.2 billion to fuel Malaysia’s cloud and AI ambitions.  

Building AI capabilities for 800,000 Malaysians through AIForMYFuture

Microsoft remains committed to supporting a robust talent pipeline for Malaysia’s AI economy. Working closely with NAIO, Microsoft introduced the AI for Malaysia’s Future (AIForMYFuture) initiative in December 2024, which aims to equip 800,000 Malaysians with AI-related skills by the end of 2025. To date, Microsoft announced it has successfully skilled 400,000 people across the government, large and small-medium corporations, startups, education institutions, underserved communities, as well as the general workforce. 

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.” 

To achieve its ambitious target, Microsoft is partnering with a wide array of stakeholders, including Biji-biji Initiative, International Women’s Federation of Commerce and Industry Malaysia (IWFCIM), iTrain, PEOPLElogy, Pepper Labs, the National TVET Council (MTVET) Secretariat, and Talent Corporation Malaysia Berhad (TalentCorp).