Microsoft to open three data centres in Malaysia by mid-2025

Malaysia has been selected by Microsoft for a major investment, with plans to establish three data centres by the second quarter of 2025. This move comes nearly a year after the company announced a substantial investment of US$2.2 billion aimed at expanding its cloud and artificial intelligence services in the country. The data centres, known as the Malaysia West cloud, will be situated in the greater Kuala Lumpur area, marking the launch of the company’s first cloud region in Malaysia. Laurence Si, the managing director of Microsoft Malaysia, confirmed these details during a press conference, emphasizing the potential impact on the local economy. The commitment from Microsoft is projected to generate significant economic growth, with estimates indicating that it may yield up to US$10.9 billion in revenues and create over 37,000 jobs over the next four years. This initiative aligns with Malaysia's ambitions to become a central hub for cloud and AI growth in Southeast Asia. Mr. Si expressed confidence that their investments would continue successfully without significant disruptions, as he noted the company's strong relationships with various stakeholders involved in the region. Additionally, Microsoft is carefully monitoring the potential effects of U.S. export controls on semiconductor chips, which could impact their operations in the region. However, Mr. Si reassured that their current operations and planned investments remain unaffected. As the hubs prepare to launch, local businesses and organizations stand to benefit, fostering innovation at a faster and more secure pace, contributing to Malaysia's digital economy growth. In summary, Microsoft's initiative represents a strategic play in a burgeoning market region. The introduction of these data centres not only signifies the company's belief in Malaysia's potential but also its dedication to bolster the local economy and technology landscape through job creation and revenue generation. The expectation of innovation spurred by these advancements suggests a promising outlook for Malaysia's technological future.