Microsoft officially unveiled plans on Tuesday for its second cloud region in Malaysia, Southeast Asia 3, which it said will meet growing demand for cloud services and drive long-term economic growth for Malaysia, as well as accelerate AI uptake across Southeast Asia.
The Southeast Asia 3 region – launched during Microsoft’s AI Tour event in Kuala Lumpur – is part of the US$2.2 billion investment plan for Malaysia that Microsoft announced in May last year. Microsoft first mentioned its plans for Southeast Asia 3 in a blog post earlier this month.
Microsoft said the new cloud region in Johor Baru will be connected to its global Azure backbone network of subsea and terrestrial fibre, and will add to Azure’s more than 70 global regions – to include its Malaysia West region with three hyperscale data centres in Kuala Lumpur, which opened for business in May.
Microsoft didn’t give a timeline Southeast Asia 3 or how much capacity it will support, describing it mainly as a “next-generation cloud region” designed to lay the foundations for scalable AI adoption and support advanced workloads across Southeast Asia.
However, the company did say Southeast Asia 3 is designed to achieve zero-water evaporation for cooling via a chip-level cooling solution through a closed loop, with water continually circulating between servers and chillers. Microsoft said this approach eliminates the need for a continuous fresh water supply, which ijn turn wil reduce ongoing water consumption.
Microsoft also said the new region will feature backup generators powered by renewable biofuel to reduce net carbon emissions.
Community-focused initiatives
The company’s Southeast Asia 3 project also come bundled with new community-focused initiatives, from building up data centre industry skillsets and entrepreneurship resources to clean water access and mangrove restoration.
Microsoft has already invested in similar initiatives in Malaysia, such as “AI for Malaysia’s Future” (AIForMYFuture), a national initiative aimed at equipping 800,000 Malaysians with AI-related skills by the end of 2025. According to Microsoft, more than 734,000 people have been skilled under the initiative as of last month across the government, large and small-medium corporations, startups, education institutions and underserved communities, as well as the general workforce.
In May, alongside the launch of Malaysia West, Microsoft unveiled its BINA AI Malaysia initiative to drive AI adoption and develop AI talent, to include a National AI Innovation Center (NAIC), set up in partnership with EY in Malaysia, the National AI Office (NAIO), and the PETRONAS Leadership Centre.
“Our expanded investment reflects Microsoft’s commitment to helping governments, businesses, and communities innovate responsibly, build with confidence, and accelerate their AI transformation journey,” said Judson Althoff, CEO of Microsoft’s Commercial Organization, at the AI Tour event in KL.
“The upcoming Southeast Asia 3 cloud region reinforces Microsoft’s continued commitment to deliver secure, resilient, and scalable cloud services that will accelerate innovation and strengthen Malaysia’s position as a regional digital leader,” added Laurence Si, MD of Microsoft Malaysia.
