The new data centers, collectively known as the Malaysia West cloud region, will be located in the greater Kuala Lumpur area and are set to begin operations in the second quarter of 2025. Laurence Si, Managing Director of Microsoft Malaysia, shared the details during a press conference on Thursday.
While Microsoft did not disclose the specific capacity of the data centers, the company emphasized that the new infrastructure will enable local businesses and organizations to innovate more quickly and securely. Si stated that the cloud region will play a key role in positioning Malaysia as a hub for cloud and AI growth in Southeast Asia.
Addressing Semiconductor Export Concerns
When asked about potential challenges related to U.S. export controls on semiconductor chips, Si acknowledged that the company is closely monitoring the situation. However, he assured stakeholders that Microsoft’s plans remain on track.
“At this point, everything is status quo for us. We have a good relationship with all the various stakeholders. Everything that we intend to invest in and go live with in our region continues to stay on track,” Si said.
Economic Impact and Job Creation
Microsoft’s $2.2 billion investment, announced in May 2024, is part of a broader commitment to support Malaysia’s digital transformation over the next four years. The company estimates that its initiatives will generate $10.9 billion in revenue for the Malaysian economy and create more than 37,000 jobs.
“Local businesses and organizations will be able to innovate faster and more securely, driving the country’s progress toward becoming the hub for cloud and AI growth in Southeast Asia,” Si added.
The launch of the Malaysia West cloud region underscores Microsoft’s commitment to expanding its global cloud infrastructure while supporting economic growth and technological advancement in key markets.