Microsoft launches its first cloud region in Malaysia

Microsoft’s first cloud region in Malaysia, known as Malaysia West, has been officially opened. Located in Greater Kuala Lumpur, the new region includes three availability zones and provides cloud services to meet local data storage needs.

With this launch, Malaysian organisations will be able to access Microsoft’s services, such as Azure and Microsoft 365, as well as tools for computing, storage, cybersecurity, and data analytics. The region is expected to help reduce latency and improve performance for users in the country.

Malaysia’s Minister of Digital, YB Gobind Singh Deo, said in a recorded message that the launch supports the government’s goal of moving the country further up the value chain by using digital and AI tools. He said the government wants to create a strong digital environment for local businesses in line with Microsoft’s stated cloud principles.

Microsoft’s Scott Guthrie, who leads the company’s Cloud and AI division, said the cloud region is designed to support Malaysia’s AI plans and give organisations the tools to build more secure systems.

Some companies have already begun to use the new infrastructure, including PETRONAS, FinHero, SCICOM Berhad, Senang, SIRIM Berhad, TNG Digital, and Veeam. Microsoft expects more organisations to join as demand grows for local cloud services.

IDC estimates that the region could generate about US$10.9 billion in the next four years. Around 17% of that is expected to come directly from the Malaysia West region. IDC also projects that more than 37,000 new jobs could be created, including nearly 6,000 skilled IT roles.

More local AI efforts in the pipeline

During its AI Tour event in Kuala Lumpur, Microsoft introduced BINA AI Malaysia, a programme designed to support local AI development. As part of the effort, Microsoft plans to set up a National AI Innovation Centre in Malaysia. The goal is to help boost AI strategies, build tools, and train talent for future roles.

Microsoft is working with EY, the National AI Office under the Ministry of Digital, and the PETRONAS Leadership Centre to explore how the centre can support real-world AI projects and create local talent. This builds on Microsoft’s earlier US$2.2 billion investment to support cloud and AI goals in the country.

Training 800,000 Malaysians in AI skills

To help build Malaysia’s AI workforce, Microsoft launched the AIForMYFuture programme in December 2024. Its goal is to train 800,000 people in AI-related skills by the end of 2025. So far, 400,000 people have received some form of training. Participants come from varied backgrounds, including government, businesses, schools, and underserved groups.

The company is working with several local groups and training providers to reach its audience. These include Biji-biji Initiative, IWFCIM, iTrain, PEOPLElogy, Pepper Labs, the National TVET Council, and TalentCorp.

Microsoft Malaysia’s Managing Director, Laurence Si, said the cloud region gives customers access to local infrastructure while the skills programme aims to prepare more Malaysians for jobs in the AI sector.

(Photo by Nour Betar)

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