[KUALA LUMPUR] Microsoft’s US$2.2 billion investment in Malaysia remains firm, despite growing global uncertainties stemming from policy shifts by the United States, a senior company executive from Microsoft Malaysia said on Thursday (Mar 20).
The tech giant’s investment, announced in May last year, remains on track, underscored by the planned second-quarter 2025 launch of its Malaysia West cloud region, comprising three data centres in Greater Kuala Lumpur.
Laurence Si, managing director of Microsoft Malaysia, said that the investment plan in Malaysia has progressed as planned. “At this point, everything is status quo for us… Everything that we intend to invest and go live with in our region, that continues to stay on track,” he told the media when asked about concerns over global trade tensions, including new United States restrictions on artificial intelligence (AI) chip exports and potential tariffs under the second Trump administration.
These data centres are part of the US$2.2 billion four-year investment that the US-based Microsoft pledged to invest in May last year, marking the company’s largest single investment in Malaysia to date.
Citing a finding of global market intelligence firm IDC, Si said Microsoft, together with its partners and cloud-using customers, would generate US$10.9 billion in new revenues for Malaysia and create 37,575 jobs in the country by 2028.
Dr Andrew Lau, director of strategic programmes for Microsoft Malaysia, emphasised that the operational Malaysia West cloud region would give local businesses access to Microsoft’s advanced cloud technologies, while ensuring compliance with Malaysia’s data residency regulations.
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Microsoft Malaysia, however, did not disclose the data centres’ capacity.
Microsoft’s investment is part of a broader initiative to support Malaysia’s digital transformation. This includes AI training programmes, the establishment of a national AI Centre of Excellence, and initiatives to bolster the nation’s cybersecurity capabilities.
In December 2024, Microsoft launched the “AI for Malaysia’s Future” initiative, aiming to equip 800,000 Malaysians with AI skills by the end of 2025. This initiative builds upon the earlier “Bersama Malaysia” programme, which provided digital skills training to over 1.53 million Malaysians.
“With the rapid pace of innovation in Malaysia, the upcoming Malaysia West cloud region is not just technological infrastructure – it is key to powering the country’s growing AI economy,” Si explained.
No details on Johor data centre
Beyond Greater Kuala Lumpur, Microsoft has acquired land in Kulai, Johor – within the Johor-Singapore Special Economic Zone – for potential data centre development. However, Si declined to share further details, saying that the company’s focus remains on the Malaysia West cloud region.
Commenting on whether US export controls on semiconductor chips had affected Microsoft’s operations in Malaysia, Si noted that Microsoft is monitoring the situation and has not yet encountered any operational disruptions in Malaysia.
Microsoft has been expanding its AI infrastructure worldwide, developing data centres and deploying its in-house Azure Cobalt 100 chip, which utilises Arm Holdings technology, designed to enhance AI capabilities.
On whether Malaysia will be a market for Microsoft’s in-house AI chips, Si pointed out that the company is evaluating market interest and will deploy the chips to the country if there is market demand.
