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From Data Centers to AI: Malaysia's Digital Transformation
Seetao 2025-08-15 16:47
  • Malaysia accelerates the construction of data centers to help the country build a Southeast Asian artificial intelligence hub
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Against the backdrop of rapid development of global artificial intelligence technology, Malaysia is actively promoting the construction of digital infrastructure, making data centers an important cornerstone for the development of the AI economy. According to the latest market data, the data center market size in Malaysia has reached 4.04 billion US dollars in 2024 and is expected to grow to 13.57 billion US dollars by 2030, with a compound annual growth rate of 22.38%.

Malaysian Prime Minister Anwar Ibrahim has made it clear that the government is committed to building Malaysia into a leading center for artificial intelligence in Southeast Asia. To this end, the Malaysian Ministry of Digital has established a National Artificial Intelligence Office, responsible for promoting the implementation of the 2026-2030 Artificial Intelligence Technology Action Plan. This strategic layout has shown initial results, and local enterprises such as Petronas, Qi Group, and Industrial Bank are accelerating the application and landing of artificial intelligence technology.

Microsoft, as a global leader in cloud computing services, will officially launch the Western Malaysia Cloud Region in the second quarter of 2025. The data center area includes three high availability zones, which are connected to other regional data centers at high speed through Microsoft's global wide area network. The President of Microsoft Asia Pacific stated, "This investment reflects our long-term commitment to digital transformation in Malaysia, which will help local businesses obtain more secure and reliable cloud services.

After the Western Malaysia Cloud Region is put into operation, it will provide complete cloud service suites such as Microsoft Azure and Microsoft 365 for enterprises. According to International Data Corporation's forecast, the data center area will drive approximately $10.9 billion in new economic revenue and create over 37000 jobs, including 5700 IT technology positions, in the next four years. These employment opportunities will mainly be distributed in key industries such as retail, manufacturing, and financial services.

In terms of sustainable development, Microsoft promises to use advanced energy-saving technologies to build data centers. The green operation of data centers not only complies with national environmental policies, but also helps businesses using cloud services reduce carbon emissions, "said the CEO of Malaysia's digital economy agency

Expert analysis suggests that Malaysia has multiple advantages in developing its data center industry, including a stable political environment, advantageous geographical location, well-developed digital infrastructure, and strong government policy support. With the deepening application of artificial intelligence technology in fields such as healthcare, finance, and manufacturing, high-quality data centers will become a key infrastructure supporting the development of Malaysia's digital economy.

The General Manager of Microsoft Malaysia emphasized, "We believe that by building world-class data centers, Malaysia can not only cultivate a local AI innovation ecosystem, but also attract more international technology companies to invest and jointly promote the development of the regional digital economy." This strategic layout will provide important support for Malaysia to achieve its 2030 digital economy vision. (This article is from the official website of Jian Dao www.seetao.com. Reproduction without permission is prohibited, otherwise it will be prosecuted. Please indicate Jian Dao website+original link when reprinting.) Jian Dao website strategy column editor/Yang Beihua

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