Microsoft to Spend USD 1 Billion on First Data Center Region in Malaysia

Apr 2021

Tech giant Microsoft Corporation has announced USD 1 billion investment in Malaysia under a new partnership program with the government agencies and local companies to implement digital transformation plans in the country over the next five years, including establishing the first “data-center region”.

The data center will be located in Greater Klang Valley and it will consists of multiple data centers connected through a dedicated regional low-latency network.

Under the program, Microsoft will invest in the digital training of one million Malaysians by the end of 2023. The firm will also focus on areas related to cloud and AI and work with the Human Resources Development Fund, Social Security Organization, Junior Achievement Malaysia, TalentCorp Malaysia, MAMPU, Grab, Biji-Biji Enterprise, and universities.

Local companies such as Petronas, the largest energy company, and Celcom Axiata, a leading telco group, have committed to participate in the initiatives and utilize Microsoft Cloud from the new data center region upon its completion.

The company’s biggest investment in Malaysia comes after it was appointed as a cloud service provider to the Malaysian government along with Google, Amazon, and Telekom Malaysia. According to the IDC’s research, Microsoft’s investment in the country is projected to generate up to USD 4.6 billion in new revenue for the ecosystem of local partners and cloud-consuming customers over the next four years. This may translate to more than 19,000 new direct and indirect employment opportunities.

(Sources: New Straits Times; The Edge Markets; Malaysia Reserve)

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