• Microsoft opens new cloud regions for Malaysia and Indonesia.
• Move supports data rules, business growth, and jobs.

Microsoft has opened its first cloud regions in Malaysia and Indonesia, giving the countries local access to data storage, AI tools, and cloud services. The move supports public and private sector efforts to improve infrastructure, strengthen security, and build digital skills.

Malaysia West, based in Greater Kuala Lumpur, and Indonesia Central, located in Jakarta, each include three availability zones, with zones offering separate power, cooling, and networking to reduce service disruptions. Both regions are now live and available to customers.

The two launches are part of larger investment plans. In Malaysia, Microsoft committed US$2.2 billion between 2024 and 2028 to support cloud and AI growth. In Indonesia, the company is investing US$1.7 billion over the same period. The funds are going toward infrastructure, training programs, and partnerships.

Meeting local rules and performance needs

Each region offers data residency, allowing organisations to keep their data inside national borders. This helps with compliance and privacy concerns, and reduces latency for users.

The cloud regions are built with the same security measures as Microsoft’s global network. These include physical safeguards, encryption, and access controls. Microsoft also reports that the centres are intended to meet environmental goals like reducing carbon emissions and improving water use.

For example, the Indonesia Central region was developed in line with Microsoft’s environmental targets which include becoming carbon negative by 2030, water positive by 2030, and reaching zero waste in the same decade. The facility is connected to Microsoft’s global wide area network, giving users in Indonesia access to high-bandwidth, low-latency connections in other regions.

Economic projections and job growth

Research from IDC suggests that these regions could create new economic value for both countries. In Malaysia, the new cloud region is projected to help generate US$10.9 billion in revenue and more than 37,000 jobs by 2028. In Indonesia, the estimate is US$15.2 billion in value and more than 106,000 jobs in the same time period.

The jobs are expected to cover both tech and non-tech roles, like cloud operations, software development, support services, and training. Many of the positions will require AI and digital skills, which ties into local workforce development efforts.

Working with local groups and businesses

Several organisations are already using the new cloud infrastructure. In Malaysia, early users include PETRONAS, TNG Digital, and SCICOM Berhad. In Indonesia, the list includes BCA, Pertamina, Telkom Indonesia, Astra, and Binus University.

Public agencies are also involved. In Indonesia, the Ministry of Communications and Digital Affairs said the cloud region shows trust in the country’s digital direction. The ministry said cloud and AI could play a role in both national development and regulation.

In Malaysia, the government sees the launch of a cloud region as part of its effort to improve digital services and support job creation. Officials believe the new infrastructure will assist firms in updating existing systems and exploring more efficient ways of working.

Focus on training and AI skills

To support these changes, Microsoft is running several skills programmes. In Malaysia, AIForMYFuture aims to train 800,000 people by the end of 2025. So far, 400,000 people have taken part. The programme includes public servants, students, and people from underserved groups.

In Indonesia, elevAIte was launched with help from the Ministry of Communications and Digital Affairs. The target is to train a million people by 2025. More than 20 organisations are involved, including schools, businesses, and local groups.

Microsoft also started a vocational programme called the Nusantara Data Centre Academy. It trains students for roles in data centre operations. Some students are already doing on-the-job training with others in classroom sessions.

In addition, a Community Empowerment Fund is helping schools near data centres improve their digital tools. Funds are used to buy equipment and run training programmes for teachers and students.

As of mid-2025, the Fund has supported over 3,200 students and teachers in Indonesia. Schools in areas like Cikarang and Karawang have received hardware and software tools to support digital learning.

AI projects and local solutions

Both countries are working to use AI to solve local problems. In Malaysia, Microsoft is part of discussions around a National AI Innovation Centre. The goal is to build tools that can support national goals and public services.

A plan for an AI Centre of Excellence in Indonesia was announced during Microsoft’s AI Tour Jakarta. The idea is to bring together stakeholders from government, education, and business to collaborate on real-world AI solutions.

Some groups have already put AI into use. Astra in Indonesia has developed a dealer management system using AI and Microsoft tools, helping with planning, inventory, and service tracking.

The Ministry of Finance in Indonesia is also assessing how to use cloud services for institutional needs. Officials said that reliable and compliant cloud infrastructure could help lower latency and improve efficiency in public sector operations.

A long-term bet on digital growth

The cloud regions are part of Microsoft’s long-term involvement in Southeast Asia. Demand for secure, local digital tools continues to rise, and governments and businesses are exploring cloud adoption as part of their digital plans.

Microsoft’s cloud regions are now one of several factors shaping how Southeast Asia uses technology. While more firms may enter this space, the current focus remains on building infrastructure that can support both long-term national strategies and daily operational needs in sectors like education, healthcare, energy, and finance.