Years after the plan was originally announced to the public, Microsoft’s first cloud region in Malaysia will finally go live in Q2 this year. Officially called the Malaysia West cloud region, its establishment was first revealed as part of the Bersama Malaysia initiative in April 2021.
Under the initiative, Microsoft has planned to invest USD1 billion (RM4.4 billion) over a period of 5 years. The amount was then increased to USD2.2 billion (RM9.7 billion) in 2024 which not only covers data centre deployment but also includes AI skilling activities together with the establishment of the AI Centre of Excellence and Perisai Cyber initiative.
What is a Microsoft cloud region?
Microsoft currently has over 60 cloud regions throughout the world covering more than 300 data centres. A Microsoft cloud region consists of one or more data centres that are linked together through a high-performance low-latency network.
These data centres are physically located in different locations (usually within 100km of each other) which lessen the chances of the whole cloud region being affected by electrical failure or natural disasters. Microsoft did not reveal the exact location of these data centres but has said that the cloud region is situated in the Greater Kuala Lumpur area.
The company has also confirmed that the Malaysia West cloud region will have three availability zones although it has no paired secondary region at the moment. Microsoft Azure as well as most of the Microsoft 365 and Microsoft Dynamics services are expected to be available from the Malaysia West cloud region once it goes live in Q2.
What are the benefits that Microsoft cloud region brings to Malaysia?
One of the main benefits that businesses and organisations in Malaysia can leverage by utilising the Malaysia West cloud region is speed which is something that comes naturally from having a facility that is based right here in Malaysia.
If they need to expand their reach to international markets, they can still do it in a seamless manner as the Malaysia West cloud region will be connected to other Microsoft cloud regions through the company’s high-bandwidth, low-latency global wide area network (WAN).
The establishment of the Malaysia West cloud region will also address the issue of data residency and compliance for businesses and organisations that have to store and process their data within Malaysian borders. Microsoft also claimed that customers can save on energy costs and reduce their environmental impact by utilising the Malaysia West cloud region.
When it comes to the bigger picture, a recent study by IDC said that the move can potentially unlock new revenues worth RM48.22 billion (USD10.9 billion) over the next 4 years. The Microsoft-commissioned study also forecasts that over 37,000 new jobs in Malaysia could be created during the same period.
