Kuala Lumpur, Malaysia — Microsoft is investing $2.2 billion over the next four years in Malaysia’s new cloud and artificial intelligence infrastructure, as well as partnering with the government to establish a national artificial intelligence center, 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 around the world.
“We are committed to supporting the AI transformation in Malaysia and ensuring it benefits all Malaysians,” he said. “Our investments in infrastructure and digital skills will help Malaysian businesses, communities and developers apply the latest technology to drive inclusive economic growth and innovation across the country.”
Nadella also announced a $1.7 billion investment in cloud and artificial intelligence services in Indonesia on Tuesday during his visit there as part of his Southeast Asia tour. On Wednesday she said Microsoft will build its first regional data center in Thailand.
In April, the tech giant similarly revealed a $2.9 billion investment in Japan and $1.5 billion in G42, an Abu Dhabi-based artificial intelligence company.
Microsoft also pledged to provide AI training to 2.5 million people in Malaysia, Indonesia, the Philippines, Thailand and Vietnam by 2025.
Nadella earlier met Prime Minister Anwar Ibrahim, who said the investment will be the key pillar of support for the government’s goal of improving AI capability in Malaysia.
The new investment will include AI training for another 300,000 people, establishing a national AI center of excellence, improving the country’s cybersecurity capabilities and supporting the growth of Malaysia’s developer community, Anwar said on Facebook.
Microsoft runs one of the largest cloud computing operations in the world and has made a leap into artificial intelligence through its partnership with OpenAI, developers of ChatGPT.
Microsoft has since integrated an AI assistant into its Microsoft Edge browser, called Copilot, which helped boost its profits by 20% in the first quarter.
Microsoft sees Southeast Asia, with a population of more than 600 million people, as a growing market and a potential location for further development of AI products. A study by global consulting firm Kearney said AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030. Indonesia is expected to capture $366 billion of the total and Malaysia $115 billion.
Microsoft said in a statement that investment in Malaysia will build on its 2021 program to support inclusive economic growth. He said the proposed national AI center will drive AI adoption in key industries and the public sector, while ensuring AI governance and regulatory compliance.
“Together with Microsoft, we hope to create more opportunities for our (small and medium-sized businesses) and higher-paying jobs for our people as we advance the AI revolution to accelerate Malaysia’s digitally empowered growth journey,” said the Minister of Trade. Zafrul Aziz said in the statement.