Microsoft expands cloud infrastructure to meet rising AI demand
What's the story
Microsoft is ramping up its cloud infrastructure investments in Asia to cater to the rising demand for digital and artificial intelligence (AI) services. The tech giant announced the launch of new Azure datacenter regions in Malaysia and Indonesia in 2025. Further expansion plans include setting up datacenter regions in India and Taiwan by 2026.
Expansion details
Southeast Asia 3 region launched in Malaysia
Along with the new datacenter regions, Microsoft also announced a second datacenter region in Malaysia. The Southeast Asia 3 region will be located in Johor Bahru. This is part of Microsoft's global infrastructure expansion, which now includes over 70 datacenter regions across 33 countries. The infrastructure provides enterprises with low-latency connectivity, regulatory compliance, and high performance capabilities.
Sector support
Microsoft Azure's footprint in Malaysia
In Asia, Microsoft's global infrastructure supports a range of sectors including financial services, public sector, manufacturing, retail and start-ups. In Malaysia, the first region Malaysia West is already being used by organizations such as PETRONAS, FinHero and SCICOM Berhad among others. The upcoming Southeast Asia 3 region will offer advanced cloud services to meet evolving enterprise demands.
AI readiness
India and Indonesia's datacenter regions to be ready by 2026
The newly launched Indonesia Central region offers hyperscale AI-ready infrastructure and three availability zones. Customers using this region include Binus University, GoTo Group, Adaro, and BCA, among others. In India, Microsoft's footprint will expand with the Hyderabad-based India South Central region in 2026 as part of a $3 billion investment in cloud and AI infrastructure.
Future plans
Microsoft's ongoing investments in Asia
In East Asia, Microsoft launched Azure Availability Zones in Japan West in April 2025. The company also plans to make Microsoft 365 services generally available in Taiwan North by next year. These investments are aimed at empowering the Asian businesses to scale operations, unlock data value, and accelerate digital transformation.