Satya Nadella unveils the largest investment in Microsoft’s 32-year history in Malaysia, marking a key step in the nation’s digital transformation

Microsoft has committed to a groundbreaking investment of RM10.5 billion (approximately S$3 billion) in Malaysia’s cloud and artificial intelligence (AI) infrastructure, aimed at accelerating the country’s digital transformation over the next four years. This announcement was made by Microsoft Chairman and CEO, Satya Nadella, during the AI National Leadership Forum in Putrajaya on May 2, 2024.

The investment is part of a larger South-East Asia tour by Nadella, where he has already visited Indonesia and Thailand. Earlier, Microsoft pledged US$1.7 billion to boost AI and cloud computing infrastructure in Indonesia and announced plans to open the first regional data centre in Thailand. Malaysia marks the final destination of Nadella’s tour, underscoring its growing importance in the tech giant’s regional strategy.

The RM10.5 billion investment is the largest in Microsoft’s 32 years of operations in Malaysia. Nadella emphasized that this initiative will help Malaysian businesses, communities, and developers harness advanced technology to foster inclusive economic growth and innovation. The investment will facilitate the development of AI and cloud infrastructure, establishing an AI Centre of Excellence in the country and providing AI training to 200,000 Malaysians.

The initiative will also support the growing demand for cloud services in Malaysia and unlock significant economic opportunities, particularly in AI, which is predicted to contribute nearly US$1 trillion to South-East Asia’s GDP by 2030. Malaysia is expected to capture US$115 billion of this growth, according to research by global consulting firm Kearney.

Microsoft has been operating in Malaysia since 1992, with offices in Kuala Lumpur and Penang employing over 200 staff. The company’s latest investment is part of an ongoing commitment that includes the establishment of Malaysia’s first data centre region, which was announced in 2021.

Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry, praised Microsoft’s investment as a major boost to Malaysia’s digital capabilities. He highlighted that the development of cloud and AI infrastructure, along with AI skilling opportunities, will significantly enhance the nation’s position in the global tech landscape and support the growth of small and medium enterprises. Prime Minister Anwar Ibrahim also expressed confidence that the investment will provide long-term economic benefits and strengthen Malaysia’s appeal to investors.

This move by Microsoft highlights the company’s long-term commitment to South-East Asia, positioning Malaysia as a key player in the global AI revolution.