Microsoft buys cloud growth in Southeast Asia for nearly $4 billion
Update –
- Added investment in Malaysia
Update from May 4, 2024:
Microsoft has announced that it will invest $2.2 billion in Malaysia over the next four years. This is the company's largest single investment in Malaysia to date, it says.
The investment will include building cloud and AI infrastructure, providing AI training to an additional 200,000 Malaysians, working with the government to establish a national AI center of excellence, and strengthening the country's cybersecurity capabilities. Microsoft will also support the development of the Malaysian developer community.
With these investments in Southeast Asia and beyond (see below), Microsoft is aggressively driving the growth of its Azure cloud. It's a strategy that will work as long as the AI hype continues and delivers on its promise.
Original article published April 30, 2024:
Microsoft is investing $1.7 billion in cloud and AI infrastructure in Indonesia, the company announced.
The investment includes new digital infrastructure, AI training for 840,000 people, and support for the country's growing developer community. Microsoft also plans to equip 2.5 million people in the ASEAN region with AI skills by 2025.
The investment follows other multi-billion dollar investments by Microsoft in Germany, Spain, and Japan.
Microsoft's main goal here is likely to strategically buy cloud growth in the short and medium term, to attract as many countries and companies as possible to Azure and profit from it in the long term.
A good portion of the money invested will likely go directly back into the Azure cloud. Microsoft is taking a similar approach with its investments in AI startups such as OpenAI.
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