Microsoft announced a $2.2 billion investment in cloud and AI infrastructure in Malaysia, the largest single investment the company has made in the country.

Microsoft’s investment will help develop Malaysia as a cloud and AI hub in the region, as well as help drive the local economy.

“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians,” said Satya Nadella, Chairman and CEO, Microsoft. “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.”

Microsoft cites research by Kearney stating that “AI could contribute nearly US$1 trillion to Southeast Asia’s gross domestic product (GDP) by 2030, with Malaysia poised to capture US$115 billion of this amount.”

As part of the company’s AI skilling commitment to Southeast Asia, Microsoft expects some 200,000 people in Malaysia to benefit via the AI TEACH Malaysia program, the Ready4AI&Security program, and other training initiatives.

YB Senator Tengku Datuk Seri Utama Zafrul Abdul Aziz, Malaysia’s Minister of Investment, Trade & Industry said, “Microsoft’s 32-year presence in Malaysia showcases a deep partnership built on trust. Indeed, Malaysia’s position as a vibrant tech investment destination is increasingly being recognized by world-recognized names due to our well-established semiconductor ecosystem, underscored by our value proposition that ‘this is where global starts’.”

“Microsoft’s development of essential cloud and AI infrastructure, together with AI skilling opportunities, will significantly enhance Malaysia’s digital capacity and further elevate our position in the global tech landscape. Together with Microsoft, we look forward to creating more opportunities for our SMEs and better-paying jobs for our people, as we ride the AI revolution to fast-track Malaysia’s digitally empowered growth journey.”