Microsoft to invest USD1B in Malaysia to set up data centres

KUALA LUMPUR (CNA) – Microsoft Corporation will invest USD1 billion in Malaysia over the next five years as part of a new partnership with government agencies and local companies, Malaysian Prime Minister Muhyiddin Yassin said yesterday.

The investment would be the United States (US) tech giant’s biggest in Malaysia.

The announcement comes after Malaysia in February gave conditional approvals for Microsoft, Google, Amazon and state telecommunications company Telekom Malaysia to build and manage hyper-scale data centres in the country and provide cloud services.

It also comes after the country saw foreign direct investments (FDI) plunge by 68 per cent last year, the biggest decline in Southeast Asia.Malaysia has defended itself as an investment destination, with the finance minister recently saying it was looking at incentives to help attract more FDI.

It has said the investments from these cloud service providers will total between MYR12 billion and MYR15 billion (USD2.91 billion to USD3.64 billion) over the next five years.

The Microsoft office in Vancouver, Canada

As part of the Bersama Malaysia initiative, Microsoft will establish its first “data centre region”, which consists of multiple data centres in Malaysia to manage data from various countries, Prime Minister Muhyiddin told an event marking the launch of the programme.

“The upcoming data centre region will be a game-changer for Malaysia,” Microsoft Executive Vice President Jean-Philippe Courtois said in a statement, adding it will enable the government and businesses to “transform” their operations.

Under the programme, Microsoft will also assist up to a million Malaysians in getting digital skills by the end of 2023.