Microsoft has reiterated its long-term commitment to Malaysia, maintaining its RM10.5 billion investment in cloud and artificial intelligence (AI) infrastructure, even as the company adjusts its global data centre strategy amid market uncertainty.
A Microsoft Malaysia spokesperson confirmed the tech giant’s ongoing plans to develop hyperscale data centres in the Klang Valley, reinforcing its role in accelerating Malaysia’s digital transformation.
“Microsoft remains committed to our investment in Malaysia to accelerate the nation’s AI and cloud adoption. As a company, the tariff is something we are watching, but we don’t have anything to share right now,” the company stated in response to queries, referring to trade tensions triggered by US President Donald Trump’s earlier announcement of wide-ranging tariffs.
According to a Bloomberg report in April, Microsoft had either paused or delayed data centre projects across several regions, including Indonesia, the United Kingdom, Australia, and select states in the United States. Microsoft acknowledged at the time that adjustments had been made to reflect the flexibility of its strategy, ensuring infrastructure is deployed in optimal locations.
Despite these global recalibrations, Microsoft continues to scale its Malaysian operations. In May, the company announced the general availability of its Malaysia West cloud region in Greater Kuala Lumpur. The launch includes three availability zones designed to deliver low-latency connections and a highly resilient infrastructure supporting platforms such as Azure and Microsoft 365.
In addition to infrastructure, Microsoft is placing substantial emphasis on local talent development. Through its “AI for Malaysia’s Future” (AIForMYFuture) initiative, the company aims to equip 800,000 Malaysians with AI skills by the end of 2025. As of May, over 400,000 individuals have received training, according to Microsoft Malaysia’s director of legal and government affairs, Adilah Junid.
She encouraged broader participation through the AI Skills Navigator platform and nationwide “Microsoft AI Teach” programmes conducted at educational institutions and National Information Dissemination Centres.
“Microsoft relies heavily on local partners such as Biji-Biji, HRD Corp, Perkeso, Pepper Labs, and the International Women’s Federation of Commerce and Industry Malaysia. They are the ones with deep community networks, enabling us to extend this opportunity as widely as possible,” said Adilah.
On the issue of environmental sustainability, particularly data centres’ high water consumption for cooling purposes, Adilah noted Microsoft’s continued efforts to innovate in this area. The company actively contributed to the digital ministry’s guidelines for sustainable data centres and works closely with authorities to ensure alignment on water and energy usage benchmarks.
-FMT
