Microsoft Commits $2.2B Investment In Malaysia's Cloud And AI Services, Largest In 32 Years

May 2, 202407:00 UTC

Microsoft Corp MSFT has announced a $2.2 billion investment in Malaysia’s cloud and artificial intelligence (AI) services over the next four years.

What Happened: Microsoft’s investment is its largest in Malaysia in 32 years. The investment will be used to expand cloud and AI infrastructure, provide AI-skilling opportunities for 200,000 people, and support the country’s developers, Reuters reported.

"We want to make sure we have world-class infrastructure right here in the country so that every organization and start-up can benefit," said Microsoft CEO Satya Nadella during a visit to Kuala Lumpur.

The investment will also involve collaboration with the Malaysian government to establish a national AI Centre of Excellence and enhance the country’s cybersecurity capabilities.

Prime Minister Anwar Ibrahim stated that the investment supports Malaysia’s efforts in developing its AI capabilities.

Why It Matters: This investment comes as a part of Microsoft’s broader strategy to expand its AI support globally. Earlier in April, the company announced a $1.7 billion investment in Indonesia’s cloud services and AI over the next four years.

Nadella’s Southeast Asian tour included visits to Indonesia, Thailand, and Malaysia, focused on AI-related plans in the region.

Malaysia has been gaining significance in the tech industry, particularly in the semiconductor sector, due to the U.S.-China tech war. The country’s expertise in the back end of the semiconductor manufacturing process has attracted major global players like Intel Corp and GlobalFoundries.

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