Microsoft to invest $1 billion in Malaysia to build regional data center

Over the past year, the accelerated development of digital transformation in many industries has attracted widespread attention. Data shows that the growth of these industries in Asia accounts for 60% of the world's total, and the region will also lead the global recovery through the digitalization of business models and economies.

Cloud services are the core foundation for Asia to achieve this goal, enabling industry, government and communities to achieve joint innovation and promote social progress.

In response, Microsoft has accelerated the growth of its cloud data center footprint in Asia and recently announced plans to build a regional data center in Malaysia.

Microsoft will invest US$1 billion in Malaysia over the next five years as part of a plan to collaborate with new partners including government agencies and local companies .

Malaysia has been defending its status as an investment destination , with the country's finance minister recently saying it is looking for incentives to attract more foreign direct investment.

It is understood that the investments by these cloud service providers will total between 12 billion ringgit and 15 billion ringgit (US$2.91 billion to US$3.64 billion) over the next five years .

As part of the plan, Microsoft will establish its first "data center region" in Malaysia, which will consist of multiple data centers to manage data from various countries.

Microsoft executive vice president Jean -Philippe Courtois said the upcoming regional data centre would be a game changer for Malaysia , allowing the government and businesses to "transform" the way they operate.

Under the plan , 19,000 jobs will be created directly or indirectly by the end of 2023 and up to one million Malaysians will be assisted in acquiring digital skills.

The initiative aims to support the development of an inclusive digital economy and strengthen the country’s digital transformation within an ecosystem of local strategic partners and customers using the country’s cloud services.

Building infrastructure is critical to driving Malaysia’s digital economy and serve as a catalyst for change in Malaysia, enabling the government and businesses to restructure and transform their operations for the benefit of all industries.

E-commerce, as part of the digital economy, will also benefit from the establishment of regional data centers.

Through big data, e-commerce platforms can help companies get a lot of help in operations, improving products and obtaining consumer demand. The cooperation between Microsoft and the Malaysian government also shows the development potential of the country's e-commerce market.

Cross-border e-commerce market

Southeast Asia