KUALA LUMPUR, Malaysia (AP) — Microsoft will invest $2.2 billion over the next four years in Malaysia’s new cloud computing and artificial intelligence infrastructure and partner with the government to create a national cloud computing center. AI, its CEO Satya Nadella said on Thursday.
This is Microsoft’s largest investment in Malaysia, as the tech giant seeks to strengthen support for AI development in the region and globally.
“We are committed to supporting the AI transformation in Malaysia and ensuring that it benefits all Malaysians,” he said. “Our investments in digital infrastructure and skills will help Malaysian businesses, communities and developers apply the latest technologies to drive inclusive economic growth and innovation across the country.”
Nadella on Tuesday also announced a $1.7 billion investment in cloud and AI services in Indonesia during his visit there as part of his Southeast Asia tour. On Wednesday, it announced that Microsoft would build its first regional data center in Thailand.
In April, the tech giant also unveiled a $2.9 billion investment in Japan and 1.5 billion dollars in the G42an AI company in Abu Dhabi.
Microsoft has also committed to providing AI training to 2.5 million people in Malaysia, Indonesia, the Philippines, Thailand and Vietnam by 2025.
Nadella earlier met with Prime Minister Anwar Ibrahim, who said the investment would be the main pillar of support for the government’s goal of boosting AI capabilities in Malaysia.
The new investment will include AI training for an additional 300,000 people, the creation of a national AI center of excellence, strengthening the country’s cybersecurity capabilities and supporting the growth of Malaysia’s developer community, said Anwar on Facebook.
Microsoft runs one of the world’s largest cloud computing operations and has moved into artificial intelligence through its partnership with OpenAI, developer of ChatGPT.
Since then, Microsoft has integrated an AI assistant into its Microsoft Edge browser, called Copilot, helping to increase profits by 20% in the first trimester.
Microsoft sees Southeast Asia, with its population of more than 600 million, as a growing market and a potential location for more AI product development. A study by international consultancy Kearney says AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030. Indonesia is expected to capture $366 billion from the total and Malaysia 115 billion dollars.
Microsoft said in a statement that the investment in Malaysia would build on its 2021 agenda to support inclusive economic growth. He said the proposed National AI Center would drive AI adoption across key industries and the public sector, while ensuring AI governance and regulatory compliance.
“Together with Microsoft, we look forward to creating more opportunities for our (small and medium enterprises) and better-paying jobs for our people as we lead the AI revolution to accelerate Malaysia’s digital growth journey” , said Commerce Minister Zafrul Aziz. said in the release.
