Microsoft CEO Satya Nadella has announced a substantial $2.2 billion investment over the next four years in Malaysia's burgeoning cloud and artificial intelligence infrastructure. This significant investment also includes a strategic partnership with the Malaysian government to establish a national AI center. Nadella emphasized the transformative potential of this investment, stating that it represents Microsoft's most substantial commitment to Malaysia to date.
The investment aims to bolster AI development in Malaysia and beyond, with a particular focus on benefiting all Malaysians. Microsoft's initiatives will include investments in digital infrastructure and skills development, aimed at empowering Malaysian businesses, communities, and developers to leverage the latest technologies for inclusive economic growth and innovation.
This announcement comes amidst Nadella's broader Southeast Asia tour, during which he also announced a $1.7 billion investment in cloud and AI services in Indonesia. Additionally, Microsoft plans to construct its first regional data center in Thailand, highlighting the company's commitment to the region's growing importance in the global technology landscape.
As part of its commitment to supporting AI development, Microsoft has pledged to provide AI training for 2.5 million individuals in Malaysia, Indonesia, the Philippines, Thailand, and Vietnam by 2025. In Malaysia specifically, an additional 300,000 people will receive AI training as part of this new investment. The establishment of a national AI center of excellence and enhancements to Malaysia's cybersecurity capabilities are also part of the initiative.
Prime Minister Anwar Ibrahim lauded the investment as a crucial pillar in Malaysia's efforts to enhance its AI capacity. He noted that the new investment will not only drive AI adoption across key industries and the public sector but also ensure AI governance and regulatory compliance.
Microsoft's focus on Southeast Asia is strategic, given the region's population of over 600 million and its potential as a growing market for AI product development. A study by global consulting firm Kearney suggests that AI could contribute nearly $1 trillion to Southeast Asia's GDP by 2030, with Indonesia and Malaysia poised to capture significant portions of this growth.
The investment in Malaysia builds on Microsoft's existing programs to support inclusive economic growth. Trade Minister Zafrul Aziz expressed optimism about the collaboration, stating that together with Microsoft, Malaysia looks forward to creating more opportunities for small and medium-sized enterprises and generating better-paying jobs as the country embraces the AI revolution.