Microsoft Malaysia to launch three data centres in Q2 2025

KUALA LUMPUR (Reuters) - Microsoft will launch its first cloud region in Malaysia with three data centres by mid-year, the tech company said on Thursday, nearly a year after it announced a $2.2 billion investment in the Southeast Asian country.

The data centres, known as the Malaysia West cloud, will be located in the greater Kuala Lumpur area and will start operations in the second quarter, Laurence Si, managing director of Microsoft Malaysia, said at a press conference.

Microsoft did not reveal the capacity of the data centres.

Asked if Microsoft has faced any issues in exporting chips to Malaysia due to U.S. export controls on semiconductor chips, Si said the company was monitoring the situation. 

"At this point, everything is status quo for us. We do have a good relationship with all the various stakeholders. Everything that we intend to invest and go live with in our region, that continues to stay on track," he said.  

In May last year, Microsoft announced an investment of $2.2 billion over the next four years to expand its cloud and artificial intelligence services in Malaysia.  

Si said Microsoft estimated its commitments in Malaysia over the next four years would generate $10.9 billion in revenues and create more than 37,000 jobs.    

"Local businesses and organisations will be able to innovate faster and more securely, driving the country's progress towards becoming the hub for cloud and AI growth in Southeast Asia", he said.  

(Reporting by Ashley Tang; Editing by John Mair)