Microsoft is expanding its cloud region in Johor Bahru, Malaysia, known as Southeast Asia 3, to accelerate AI transformation across Southeast Asia. This investment aims to meet the growing demand for trusted cloud services and drive long-term economic growth, while solidifying Malaysia's regional leadership in the digital economy. YB Gobind Singh Deo, Malaysia’s Minister of Digital, emphasized the importance of this collaboration in building Malaysia's leadership in digital assets. Judson Althoff, CEO of Microsoft’s Commercial Organization, announced the expansion at the AI Tour in Kuala Lumpur, highlighting Microsoft’s commitment to helping governments, businesses, and communities innovate responsibly. The Southeast Asia 3 region will complement Microsoft Azure’s global network of over 70 regions. Building Responsibly for Community and Sustainability Microsoft’s initiatives in Johor Bahru, guided by its Datacenter Community Pledge, include:

Skills2Work Datacenter Foundations Program: Collaborating with The Asia Foundation and Universiti Teknologi Malaysia to train 150 graduates for datacenter careers.
Social entrepreneurship: Training 200 trainers from 20 social enterprises in partnership with UNDP Malaysia and BPEN Johor.
Renewable energy: Utilizing renewable biofuel for backup generators.
Water-efficient cooling: Adopting chip-level cooling for zero-water evaporation.
Clean water access: Installing rainwater harvesting systems in 42 Johor schools.
Mangrove restoration: Partnering with Belia Prihatin and WWF Malaysia for ecological restoration projects.

Embracing Malaysia's Journey to Becoming Frontier Microsoft is enabling businesses to evolve into Frontier firms, maximizing impact and creating value through AI. Examples in Malaysia include:

AFFIN Group: First bank in Asia Pacific with a digital core banking platform on Microsoft Azure.
PETRONAS: Embedding AI to power decisions and accelerate innovation.
RHB Bank: Leveraging Azure OpenAI in Microsoft Teams for streamlined processes.

To ensure inclusive transformation, Microsoft continues to invest in skilling through AI for Malaysia’s Future (AIForMYFuture), a national initiative aimed at equipping 800,000 Malaysians with AI-related skills by the end of 2025. More than 734,000 individuals have been skilled across the government, large and small-medium corporations, startups, education institutions, underserved communities, as well as the general workforce. Building an AI-powered foundation for inclusive growth In May, Microsoft unveiled BINA AI Malaysia to accelerate the nation’s AI transformation. A key initiative under BINA AI Malaysia is the Microsoft National AI Innovation Center (NAIC), set up in partnership with EY in Malaysia, the National AI Office (NAIO), and the PETRONAS Leadership Centre. As part of this broader effort, Microsoft is collaborating with various partners to deploy AI solutions nationwide. One such initiative involves Microsoft and EY working with the Employees Provident Fund (EPF) to jointly build an AI-powered platform to enhance financial literacy and retirement planning for its 16 million members.