Microsoft has launched its first cloud region in Malaysia, known as Malaysia West, aiming to support the country’s growing demand for digital and artificial intelligence (AI) capabilities.
Located in Greater Kuala Lumpur, the new cloud region features three availability zones and provides local data residency, security, and lower latency.
The infrastructure will support services such as Microsoft Azure and Microsoft 365, with business applications to follow.
Several organisations are already using the cloud region, including PETRONAS, which is serving as a key partner in Malaysia West and working with Microsoft to enhance its digital and AI transformation.
Other users include FinHero, SCICOM Berhad, Senang, SIRIM Berhad, TNG Digital, and Veeam.
According to IDC projections, Microsoft, its partners, and customers could collectively generate around US$10.9 billion in new revenue by 2028, with the Malaysia West cloud region contributing nearly 17% of that figure.
The effort is also expected to create over 37,000 jobs, including nearly 6,000 skilled IT roles.
At the Microsoft AI Tour in Kuala Lumpur, the company introduced BINA AI Malaysia, an initiative focused on advancing AI adoption and talent development.
The initiative aims to support national strategies by building AI capabilities, encouraging collaboration across industries, and nurturing future-ready talent.
As part of this, Microsoft is exploring a collaboration with EY, the National AI Office, and PETRONAS Leadership Centre to establish a National AI Innovation Center.
The center is intended to serve as a strategic hub for solving real-world challenges through AI, accelerating adoption, and showcasing Malaysia’s AI capabilities.
The cloud region launch builds on Microsoft’s US$2.2 billion investment announced in 2024 to support Malaysia’s cloud and AI goals.
Microsoft also highlighted progress on its AIForMYFuture programme, which aims to train 800,000 Malaysians in AI-related skills by the end of 2025.
So far, 400,000 people have received training, with support from partners such as Biji-biji Initiative, IWFCIM, iTrain, PEOPLElogy, Pepper Labs, MTVET Secretariat, and TalentCorp.
YB Gobind Singh Deo, Malaysia’s Minister of Digital, said in a recorded speech,
“With this cloud region, we can leverage the latest digital and AI technologies to move up the value chain, and the Government has set the stage, developing a world-class, trusted digital environment for businesses to thrive, aligned with Microsoft’s Trusted Cloud Principles.
Together, let us seize this opportunity to surge ahead and solidify Malaysia’s position as a regional leader in the digital and AI economy.”
Laurence Si, Managing Director, Microsoft Malaysia said,
“With Microsoft’s new Malaysia West Cloud Region now on local soil, we are thrilled about the vast opportunities this will bring for our customers across the enterprise, public sector, and startups to become faster, more agile, and more innovative than ever.
Beyond infrastructure, we are committed to delivering digital and AI skills to every Malaysian through the AIForMYFuture initiative, supporting the nation’s vision of becoming a regional digital leader.”
Featured image: Scott Guthrie, EVP, Cloud +AI, Microsoft, announces the general availability of Malaysia West – Microsoft’s first cloud region in the country – at the Microsoft AI Tour Kuala Lumpur
