Microsoft To Launch Malaysia's First Cloud Region With Three Data Centers

Microsoft Corp (NASDAQ:MSFT) is establishing Malaysia West cloud region, its first cloud region in the country. Scheduled to open in the second quarter of 2025, it is located in Greater Kuala Lumpur.

This new facility will feature three availability zones, offering businesses better performance, enhanced security, and reduced latency.

It will also allow companies to store data locally, ensuring compliance with regional data regulations while enabling international expansion.

Malaysia’s data center market, valued at $4.04 billion in 2024, is expected to skyrocket to $13.57 billion by 2030, marking a compound annual growth rate (CAGR) of 22.38%.

Data centers are pivotal for AI operations, serving as the infrastructure behind cloud computing services. They house servers, storage devices, and networking equipment, ensuring that data is accessible and secure.

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In Malaysia, these centers are now essential to accommodate the immense computational demands of AI models. As AI adoption surges across industries, data centers must scale to handle the workload.

West cloud region aims to provide local businesses and organizations with access to Microsoft's cloud technologies, supporting Malaysia’s digital innovation goals.

The region is expected to generate $10.9 billion in new revenues between now and 2028. According to an IDC study commissioned by Microsoft, this growth will create over 37,500 new jobs, including 5,700 in IT.

“As Microsoft commits to transforming Malaysia's cloud and AI infrastructure, the upcoming Malaysia West cloud region will enable Malaysian companies to scale their innovation in a more seamless way, while offering global businesses a gateway into Malaysia with integrated technological readiness,” said Director of Strategic Programs for Microsoft Malaysia, Andrew Lau.

In May 2024, Microsoft Chairman and CEO Satya Nadella announced a $2.2 billion investment to further Malaysia's AI and cloud initiatives.

Microsoft is also rolling out the "AI for Malaysia's Future" initiative. It aims to equip 800,000 Malaysians with AI skills by the end of 2025.

This initiative builds on Microsoft's previous efforts. This includes the Bersama Malaysia program, which provides digital skills to over 1.53 million people in the country.

Price Action: MSFT shares traded higher by 0.064% at $388.07 in premarket at last check Thursday.

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