Microsoft’s first cloud region in Malaysia goes live

The Malaysia West cloud region is an AI-ready hyperscale cloud infrastructure with three availability zones.

Microsoft’s first cloud region in Malaysia is now live. Called Malaysia West, the cloud region located in Kuala Lumpur will be an AI-ready hyperscale cloud infrastructure with three availability zones.

Organizations in Malaysia will have access to scalable, available, and resilient cloud services coupled with in-country data residency, high levels of security, and lower latency with the availability of the new cloud region.

In his keynoted address at the Microsoft AI Tour in Kuala Lumpur, Scott Guthrie, Executive Vice President, Cloud + AI, Microsoft the tech giant remains committed to being Malaysia’s partner in its AI transformation.

“The Malaysia West cloud region will deliver world-class AI data center infrastructure and enable organizations to accelerate their innovation more securely – creating a future that is inclusive, sustainable, and AI-ready,” said Guthrie.

For Laurence Si, Managing Director at Microsoft Malaysia, the new Malaysia West Cloud Region on local soil provides vast opportunities for 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,” added Si.

Among the customers that are leveraging Malaysia West includes PETRONAS. The country’s global energy and solutions provider will serve as the key partner in Malaysia West, leveraging Microsoft’s trusted hyperscale cloud infrastructure. Other customers using Microsoft’s new cloud region include FinHero, SCICOM Berhad, Senang, SIRIM Berhad, TNG Digital (the operator of TNG eWallet), and Veeam, along with more organizations expected to come onboard as demand for secure, scalable, and locally hosted cloud services continue to grow across industries.

According to IDC, Microsoft, its partners, and its cloud-using customers are projected to jointly generate US$10.9 billion in new revenues over the next four years, with the new cloud region accounting for approximately 16.9% of this new revenue total through 2028.

Apart from the new cloud region, Microsoft also unveiled BINA AI Malaysia, an initiative to help drive the next phase of Malaysia's AI transformation. Rooted in Microsoft’s vision to build the nation’s AI future, BINA AI Malaysia reflects Microsoft’s commitment to nation-building in partnering with stakeholders across industries to drive AI adoption and developing AI-ready talent.

This includes the establishment of the Microsoft National AI Innovation Center with the goal of advancing national AI strategies, fostering collaborations to accelerate AI adoption, and solving societal challenges through AI-powered solutions. The center will be set up in collaboration with EY in Malaysia, the National AI Office and PETRONAS Leadership Centre. The center will serve as a strategic hub for developing real-world solutions, nurture future-ready talent, and showcase the nation’s AI capabilities. It builds on Microsoft’s earlier announcement in 2024 to invest US$2.2 billion to fuel Malaysia’s cloud and AI ambitions.