Microsoft to Invest $1 Billion in Its First Data Center in Malaysia

By Avi Ben Ezra Monday, April 19, 2021

Microsoft Corporation announced it plans to invest $1 billion within the following five years in Malaysia. According to a statement released earlier today by the tech company, it has partnered up with government agencies and local companies.

Microsoft building.

First Data Center in Malaysia to Be Opened by the Business

The move marks Microsoft’s largest business investment in Malaysia to date and comes after the Malaysian government allowed Microsoft, Google, Amazon, and Telekom Malaysia to build and run data centers and provide cloud services in the country.

The local government was hit by a decrease in foreign direct investments (FDI) by 68% last year, marking the largest drop in Southeast Asia. The country’s finance minister recently said in a statement it was considering different incentives to increase FDIs.

Moreover, the local government worked with major tech businesses to facilitate investments into the country. The finance minister said that Microsoft, as well as other tech companies, will invest between $2.91 billion and $3.64 billion over the next five years in the country.

The tech business will build its first data center region in Malaysia under the “Bersama Malaysia” (Together with Malaysia) initiative.

"The upcoming data center region will be a game-changer for Malaysia," said Microsoft Executive Vice President Jean-Philippe Courtois. He said the move will allow his company and the Malaysian government to transform the local business ecosystem.

Furthermore, the US tech business will also train up to a million Malaysian citizens to obtain digital skills by the end of 2023. Microsoft’s business investment supports Malaysia’s MyDigital objective to make the nation a digital economy leader in the region.

The investment is expected to accumulate up to $4.6 billion in new business revenues for Malaysian local partners and the users of cloud services over the following four years. Also, it is expected that Microsoft and its partners will help create over 19,000 new direct and indirect jobs in the country.

“This significant investment from Microsoft further fortifies Malaysia’s position as a potential regional data hub and we stand ever ready to welcome more such partners as we work with our stakeholders to continually improve Malaysia’s value proposition in this big data space,” YAB Tan Sri Muhyiddin Yassin, Prime Minister of Malaysia, said.

The US company will build its first data center region in the area of Greater Kuala Lumpur and provide access to all Microsoft Cloud services, including Microsoft Azure, Microsoft 365, and the Dynamics 365 and Power Platform.

The data center region will also provide Azure Availability Zones in a bid to support the company’s sustainability objectives and reinforce resilience options for highly available applications.

Microsoft has previously committed to migrating to a 100% renewable energy supply by 2025 and carbon negative by 2030. This allows the company to buy agreements for green energy contracted for 100% of carbon-emitting electricity consumed by all of its facilities.

Summary

Tech company titan Microsoft said it will pour $1 billion in Malaysia in the coming five years in partnerships with local companies and the Malaysian government. The US company will build its first “data center region” in the country, consisting of multiple data centers.

About the Author


Headshot of Avi Ben Ezra

Avi Ben Ezra is the CTO and Co-founder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.

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