Microsoft invests billions in Southeast Asia to expand AI infrastructure

Microsoft apparently sees Southeast Asia as a growth market for artificial intelligence (AI) and will invest several billion US dollars in countries such as Malaysia, Indonesia and Thailand. The money will be used to expand the digital infrastructure for cloud computing and AI services. This also includes AI training courses to train people in the use of this technology and support for local developers.

In Malaysia alone, Microsoft plans to invest 2.2 billion US dollars over the next four years, as Microsoft CEO Satya Nadella promised during a visit to Kuala Lumpur yesterday. 200,000 people are to receive AI training there and the company will support the government with regard to cybersecurity.

Investments in Thailand and Indonesia alongside Malaysia

Malaysia is the third country on Nadella's Southeast Asia trip. The Microsoft CEO previously visited Thailand and Indonesia, where he made similar promises. The company did not name any investment amounts for Thailand, but announced the construction of its first data center in this country. According to local media, this will cost one billion dollars. Here, too, people are to be trained in AI, but at 100,000 people, this is only half the number in Malaysia.

In Indonesia, even more people are to receive AI training, namely 840,000. With a total of 1.7 billion dollars for cloud and AI infrastructure, it is Microsoft's largest investment in this country. The aim is to support Indonesia in its national plans to become a global economic power by 2045.

AI use in Southeast Asia still has room for improvement

AI is still little used in Southeast Asia, writes Bloomberg. This is why large technology companies such as Microsoft, Alphabet and Google, as well as the Chinese Alibaba Group, are vying to win over companies and customers in Southeast Asia. After all, it is a rapidly digitizing region with over 650 million inhabitants. The companies also want to reduce their dependence on China should the geopolitical dispute between Beijing and the USA intensify.

Malaysia in particular, with its proximity to Singapore, Asia's most important financial center alongside Hong Kong, is a target for many investors. Together with a local company, Nvidia is building an AI data center worth 4.3 billion dollars in southern Malaysia on the border with Singapore.

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