Microsoft Injects $2.2bn Into Malaysia's Tech Upgrade

Microsoft has made a significant commitment to Malaysia’s digital future, investing $2.2 billion in artificial intelligence and cloud computing infrastructure that will drive economic growth and transformation.

As Satya Nadella touches down in Indonesia, Thailand, and Malaysia, the Microsoft CEO is set to ignite a tech revolution, announcing a slew of strategic investments in data centers, AI solutions, and cloud services that will reshape the region’s digital landscape.

“Today, Microsoft announced it will invest $2.2 billion over the next four years to support Malaysia’s digital transformation — the single largest investment in its 32-year history in the country,” it said in a statement released as Nadella gave a keynote speech in Kuala Lumpur.

He noted that the massive injection of cash from Microsoft is set to turbocharge Malaysia’s AI ambitions, fueling the creation of a cutting-edge AI center of excellence and empowering up to 200,000 Malaysians with AI training, poised to revolutionize the nation’s digital landscape.

“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians,” Nadella said in the statement.

“Our investments in digital infrastructure and skilling will help Malaysian businesses, communities, and developers apply the latest technology to drive inclusive economic growth and innovation across the country.”

Nadella’s keynote speech included a confirmation of the investment, as he expressed his joy, saying he was “over the moon” to announce the expansion.

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“We want to make sure that we have world-class infrastructure right here in the country so that every organisation, every software developer, every start-up, can use it to not only build for this country, but for the world and the region,” he told the crowd.

The pledge comes after he announced a $1.7 bn investment in Indonesia, as well as Thailand’s first data centre region this week to boost cloud and artificial intelligence infrastructure.

Research by global consulting firm Kearney showed AI was poised to contribute $1 trillion to Southeast Asia’s gross domestic product by 2030, with Malaysia predicted to see more than a tenth of that, the statement said.

“Microsoft’s development of essential cloud and AI infrastructure, together with AI skilling opportunities, will significantly enhance Malaysia’s digital capacity,” Malaysian Trade Minister Zafrul Abdul Aziz said in the statement.

Microsoft planted its roots in Malaysia in 1992 and has since flourished, growing to a robust team of over 200 employees across its Kuala Lumpur and Penang offices.

Since diving headfirst into the generative AI revolution, the company has reaped a windfall of investor support, sparked by its groundbreaking $13 billion alliance with OpenAI, the masterminds behind ChatGPT, in 2023.

Microsoft’s sales soared to new heights, with a 17% year-over-year increase to $61.9 billion in the January-March quarter, accompanied by a 20% surge in net profit to $21.9 billion, as announced by Nadella last week.

Nadella’s AI-driven vision has propelled Microsoft’s cloud services, led by Azure, to the forefront of its business, fueling a significant sales boost and cementing their position as the company’s core growth engines.

Africa Today News, New York

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