Microsoft plans to invest $2.2 billion in Malaysia to enhance artificial intelligence and cloud infrastructure, as part of its broader strategy to advance digital transformation in Southeast Asia.

This commitment, announced by CEO Satya Nadella, includes the establishment of an AI Centre of Excellence and training for 200,000 Malaysians. This initiative follows similar investments in Indonesia and Thailand, highlighting Microsoft’s significant role in the region’s technological growth. Consulting firm Kearney predicts AI could contribute nearly $1 trillion to the region’s GDP by 2030.

Microsoft’s global strategy also features significant AI developments in Japan and collaborations with UAE-based AI firm G42.

“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians,” Nadella said as he visited Kuala Lumpur on the final stop of a three-nation tour of Southeast Asia. “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.”

Zafrul Abdul Aziz, meanwhile, Malaysia’s minister of investment, trade and industry, said the investment reflected a “deep partnership built on trust”.

“Indeed, Malaysia’s position as a vibrant tech investment destination is increasingly being recognised by world-recognised names due to our well-established semiconductor ecosystem, underscored by our value proposition that ‘this is where global starts,’” he said.

He also stated that the development of essential cloud and AI infrastructure by Microsoft, coupled with AI skilling opportunities, would significantly enhance Malaysia’s digital capacity and elevate its position in the global tech landscape. He expressed anticipation of creating more opportunities for SMEs and better-paying jobs in collaboration with Microsoft, as part of an effort to accelerate Malaysia’s growth through digital empowerment amid the AI revolution.