KUALA LUMPUR (March 20): Microsoft Corp, alongside its partners and cloud-consuming customers, is projected to generate US$10.9 billion (RM48.3 billion) in new revenue for Malaysia, of which its hyperscale cloud region contributes 16.9%, between now and 2028.

Citing IDC's research commissioned by Microsoft, the global technology titan said the hyperscale cloud initiative, alongside its partners, is expected to create 37,575 new jobs over the same period in Malaysia, including 5,700 skilled information technology (IT) roles.  

“Once operational, the Malaysia West Cloud Region will provide organisations across Malaysia with access to Microsoft’s most trusted and comprehensive cloud technologies, enabling them to scale operations, enhance efficiency, and strengthen digital resilience,” Microsoft said in a press release on Thursday. 

The Malaysia West Cloud Region, Microsoft’s first cloud region in the country, is expected to go live by the second quarter of 2025. Customers will have access to the full suite of Microsoft Cloud services, including Microsoft Azure, Microsoft 365, and Dynamics 365/Power Platform once it is operational. 

The region will feature three availability zones — distinct physical locations designed to provide low-latency connections to each other while being sufficiently separated to mitigate risks from local outages or extreme weather events. Each zone operates with independent power, cooling, and networking infrastructure to ensure high availability and business continuity in the event of an outage.  

The Malaysia West Cloud Region will also be integrated with Microsoft’s global wide area network, offering high-bandwidth, low-latency connectivity to other Microsoft cloud regions worldwide.  

Microsoft Malaysia managing director Laurence Si highlighted that the new cloud region will be key to powering the nation’s growing artificial intelligence (AI) economy. 

“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.  

Meanwhile, Microsoft Malaysia director of strategic programs Dr Andrew Lau noted that the Malaysia West Cloud Region will enable Malaysian companies to scale their innovations seamlessly while providing global businesses with a technologically integrated gateway into the country.  

“We are optimistic that the new cloud region will enhance the country’s global competitiveness in a rapidly evolving digital landscape, propelling Malaysia to be at the forefront of an AI-powered future,” Lau added.  

Microsoft had previously announced a US$2.2 billion commitment in May 2024 to accelerate Malaysia’s cloud and AI ambitions, as revealed by Microsoft chairman and chief executive officer Satya Nadella.  

The article has been amended for accuracy. 

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