Microsoft's Monumental $2.2 Billion Investment in Malaysia

Today, Microsoft announced an investment of $2.2 billion in Malaysia over four years to build a new data center equipped with an expanded portfolio of cloud services and artificial intelligence (AI) capabilities.

In fact, according to one blog, it was said that the investment is Microsoft's largest in its 32-year history within Malaysia. It should include cloud and AI infrastructure development, AI skilling for 200,000 people, and support for the country's developers.

The government of Malaysia will also collaborate with Microsoft in creating an AI Centre of Excellence to strengthen AI development and fortify the capacity of the country in cybersecurity.

"That investment is in line with Malaysia's effort to raise our capacity in AI," said Prime Minister Anwar Ibrahim after meeting with Microsoft Chief Executive Satya Nadella.

Microsoft Chief Executive Satya says, "Society has to be run as a business where success is measured on human fulfilment.". "We want to make sure we have the world-class infrastructure right here in the country so that every organization and startup can benefit from it.

A global consulting firm, Kearney, opined that by 2030, AI is poised to contribute $1 trillion to the gross domestic product in Southeast Asia. This study finds Malaysia poised to capture US$115 billion of that.

Microsoft is looking to further its backing for the development of AI across the world. Just this week, Nadella announced a $1.7 billion investment in next-door Indonesia and said that Microsoft would open its first regional data center in Thailand.

On Feb. 20, Microsoft has announced yet another big bet for Europe: The company has committed a total of $2.1 billion to expand its AI and cloud infrastructure in Spain. This would follow another 3 billion euros, this time aimed at developing Germany's AI ecosystem, which was announced on Feb. 15.

As the European Union gears to legislate its landmark EU AI Act legislation, Big Tech companies are investing in Europe for AI development.

The announcement came from the tech giant Google in February of its "AI Opportunity Initiative for Europe," which includes an AI commitment to invest 25 million euros ($26.9 million) in skills training for Europeans in the AI sector.

The Google will team up with EU governments, civil societies, and academics and businesses to offer AI training to the local start-ups. It pools funds to ensure workers acquire essential skills that will prevent them from being left out. Back in 2023, the Italian government undertook a similar initiative by setting aside millions of euros to increase workers' digital skills who are faced with being displaced by automation and AI.