Microsoft's Chief Executive Office Satya Nadella capped a three day visit to Southeast Asia by announcing a US$2.2 (S$3) billion dollar investment in Malaysia's digital infrastructure.

Cloud cover

Bloomberg reported that Nadella had visited Malaysia on May 2, meeting with Malaysian Prime Minister Anwar Ibrahim in his offices in Putrajaya.

They later attended the National AI Leadership Forum together.

During Nadella's visit, he announced that Microsoft would be investing US$2.2 (S$3) billion in Malaysia to build up its digital infrastructure.

Over the next four years, Microsoft will build infrastructure for cloud computing and artificial intelligence services.

Microsoft committed to training over 200,000 people in Malaysia in AI, as well as partner with Malaysia's government to establish a national AI Centre of Excellence, and to boot its cybersecurity capabilities.

Microsoft also said that it would be supporting the growth of Malaysia's developer community.

In a social media post, Nadella said that the investment was the "biggest investment in the country to date", and would provide "new skilling opportunities for people across the country".

It’s great to be back in Malaysia, where we’re announcing our biggest investment in the country to date to help support its AI transformation and create new skilling opportunities for people across the country. https://t.co/or0lYCEF3w

— Satya Nadella (@satyanadella) May 2, 2024

"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.”

Investment opportunity

Anwar posted on social media as well, where he noted that this was the largest single investment by the company in its 32 years of operation in Malaysia, although he said it would involve opportunities for 300,000 people, somewhat higher than Microsoft's number.

Anwar said that the investment proved Microsoft's confidence in Malaysia's "strong economic case", as well as its "clear and focused policies", investor friendliness and political stability.

Terima kunjungan hormat Pengerusi dan Ketua Pegawai Eksekutif Microsoft, Satya Nadella serta delegasi di Putrajaya hari ini.

Satya memaklumkan bahawa gergasi teknologi Microsoft bersetuju untuk menambah pelaburan berjumlah USD2.2 bilion (RM10.5 bilion) dalam tempoh 4 tahun… pic.twitter.com/hG0GKvmn6D

— Anwar Ibrahim (@anwaribrahim) May 2, 2024

Anwar has made welcoming foreign investors a priority for his government, announcing in March 2024 that Malaysia had attracted RM76.1  (S$21.72) billion potential foreign investments.

A trip to the SEA

Nadella's Malaysia visit was the last stop in a three country, three day trip.

He also made visits to Thailand and Indonesia, announcing similar investments, as well as meeting with their leaders, Prime Minister Srettha Thavisin and President Joko Widodo respectively.

In Thailand, Microsoft announced training and AI skilling opportunities for over 100,000, and over 840,000 in Indonesia.

It also announced a US$1.7 (S$2.3) billion increase investment in new cloud and AI infrastructure in Indonesia.

Thailand received a "significant commitment" to such infrastructure, but an amount was not disclosed, although the Bangkok Post reported a sum of US$1 (S$1.36) billion would be invested in a Azure data centre in Thailand's Eastern Economic Corridor.

Azure is Microsoft's cloud computing platform.

The Wall Street Journal reported that Microsoft has long had ties to Southeast Asia, and has been planning to open data centres in Malaysia and Indonesia for "several years".

Meanwhile, Singapore has been home to Microsoft's first Southeast Asian Azure data centre since 2010.

Bloomberg reported that the investment comes as Microsoft has pledged at least US$7 (S$9.5) billion in Asia, and that the value of AI adoption is about US$1 (S$1.36) trillion in Southeast Asia.

Apple's CEO Tim Cook visited Singapore between Apr. 18 and 19, in part to announce a S$340 million expansion to its Ang Mo Kio campus, in order to expand its AI capacity in the country.

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Top image via Anwar Ibrahim/X, Joko Widodo/X & Srettha Thavisin/X