Microsoft is set to launch its first cloud region in Malaysia, featuring three data centres in the greater Kuala Lumpur area.

The centres, known as Malaysia West, will begin operations by mid-year, marking a significant step in the company's$2.2 billion investment in the country.

However, this move is part of Microsoft's broader plan to expand its cloud and AI services in Southeast Asia. Microsoft estimates the investment will generate$10.9 billion in revenue and create over 37,000 jobs in Malaysia over the next four years.

Laurence Si, managing director of Microsoft Malaysia, stated that the company's operations in Malaysia remain on track despite concerns over US export controls on semiconductor chips.

Microsoft remains confident in its relationships with stakeholders and its ability to meet its investment commitments.

Local businesses are expected to benefit from enhanced cloud and AI capabilities, with the country aiming to become a leading hub for technological innovation in the region.