Microsoft invests $2.2 billion in Malaysian cloud expansion

Microsoft is set to launch its first cloud region in Malaysia, featuring three data centres in the greater Kuala Lumpur area.

The centres, known as Malaysia West, will begin operations by mid-year, marking a significant step in the company’s $2.2 billion investment in the country.

However, this move is part of Microsoft’s broader plan to expand its cloud and AI services in Southeast Asia. Microsoft estimates the investment will generate $10.9 billion in revenue and create over 37,000 jobs in Malaysia over the next four years.

Laurence Si, managing director of Microsoft Malaysia, stated that the company’s operations in Malaysia remain on track despite concerns over US export controls on semiconductor chips.

Microsoft remains confident in its relationships with stakeholders and its ability to meet its investment commitments.

Local businesses are expected to benefit from enhanced cloud and AI capabilities, with the country aiming to become a leading hub for technological innovation in the region.

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Thailand approves millions for data centres

Thailand has approved investments worth 90.9 billion baht ($2.7 billion) in data centres and cloud services, further boosting its growing tech sector. The newly approved projects include data centres by China’s Beijing Haoyang Cloud&Data Technology, Singapore-based Empyrion Digital, and Thailand’s GSA Data Center 02, according to the country’s investment board.

Among these, Beijing Haoyang plans to build a 300-megawatt data centre valued at 72.7 billion baht, while GSA Data Center 02 is investing 13.5 billion baht in a 35-megawatt facility.

The rapid rise of AI has fuelled demand for data infrastructure across Southeast Asia, making Thailand an attractive hub for investment. In January, TikTok’s parent company, Bytedance, announced plans to establish a data hosting service in Thailand worth 126.8 billion baht.

It follows significant investments from tech giants such as Google, which pledged $1 billion last year, and Amazon Web Services, which committed $5 billion over 15 years.

Microsoft has also revealed plans to open its first regional data centre in Thailand, reinforcing the country’s status as a growing digital hub in the region. With an increasing number of global technology firms choosing Thailand for data operations, the country is set to play a key role in Southeast Asia’s evolving digital economy.

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Microsoft to boost AI investment in South Africa

Microsoft has announced plans to invest an additional 5.4 billion rand (about $296.81 million) by 2027 to enhance its cloud and AI infrastructure in South Africa.

The investment comes in response to the increasing demand for the company’s Azure services in the region, with a particular focus on meeting the needs of businesses integrating AI technology into their operations.

Brad Smith, Vice Chair and President of Microsoft, revealed the initiative during an event in Johannesburg, confirming that the company would also fund technical certification exams for 50,000 individuals.

These exams will cover crucial digital skills, including cloud architecture, AI, and cybersecurity, aiming to address the shortage of skilled professionals in high-demand sectors.

The new investment builds on Microsoft’s previous spending of 20.4 billion rand to establish South Africa’s first enterprise-grade data centres in Johannesburg and Cape Town.

These data centres have become essential hubs for handling the computational demands of AI, as local businesses look to adopt AI-driven solutions.

The company’s broader strategy includes a global commitment to invest around $80 billion in 2025 to further develop data centres and deploy AI and cloud-based applications. South Africa, as a growing tech hub, is expected to play a key role in Microsoft’s plans for the future.

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Malaysia discusses impact of US chip tariffs with companies

Malaysia is engaging with its semiconductor industry to address the potential impact of US tariffs on chips. The US has signalled its intention to impose tariffs of up to 25% on semiconductors, which could significantly affect Malaysia, one of the top exporters of chips to the US Last year, Malaysia shipped $16.2 billion worth of chips, making up nearly 20% of US semiconductor imports.

Trade Minister Tengku Zafrul Aziz said the government is in talks with companies to see if they can absorb the higher costs caused by the tariffs. The discussions are focused on whether consumers or companies will bear the increased expenses. While the government has not yet decided whether it will provide financial support, Malaysia’s strong semiconductor sector, which includes US giants like Intel and GlobalFoundries, remains a critical part of the economy.

Despite concerns over the tariffs, Tengku Zafrul expressed confidence that Malaysia’s data centres would not be affected by new US export restrictions on advanced chips. The country has become a major hub for data centres, attracting investments from companies such as Microsoft, Google, and Amazon. The growth of AI-related demand is expected to drive further expansion, and Tengku Zafrul indicated that the sector’s trajectory is strong enough to absorb any new challenges.

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Microsoft drops parts of CoreWeave partnership

Microsoft has reportedly scaled back parts of its agreements with cloud computing provider CoreWeave due to delivery issues and missed deadlines, according to the Financial Times.

Despite maintaining several contracts worth billions, the tech giant has moved away from certain deals, though the decision is said to be unrelated to any broader changes in its data centre strategy.

CoreWeave, backed by Nvidia, specialises in providing high-powered AI computing resources and competes with major cloud providers like Microsoft Azure and Amazon AWS.

The company is preparing for a major initial public offering (IPO) in New York, aiming for a valuation exceeding $35 billion and seeking to raise over $3 billion.

The cloud provider recently expanded its capabilities by acquiring AI developer platform Weights & Biases for an undisclosed sum.

Neither Microsoft, CoreWeave, nor Nvidia have responded to requests for comment regarding the report.

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Northumberland approves Blackstone’s data centre project

Blackstone’s ambitious $13 billion ‘hyperscale’ data centre project in North East England has been given the green light by Northumberland County Council. The plan, which spans 540,000 square metres, was approved after a unanimous vote and is expected to represent an investment of up to £10 billion. The data centre will provide essential data storage and cloud computing services to businesses, addressing the rising demand in sectors such as AI.

The development is expected to generate substantial economic benefits, including up to 1,200 long-term construction jobs and hundreds of operational roles once the centre is running. Additionally, it could support up to 2,700 indirect jobs. As part of the agreement, Blackstone will contribute to a £110 million fund that will help drive growth along the Northumberland Line, a new railway route opened in December 2024.

This development follows the collapse of a previous plan to use the site for a Britishvolt facility, after the UK startup’s failure last year. With demand for data centres escalating, particularly due to AI advancements, this project is poised to play a crucial role in meeting growing technological needs across Europe.

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CoreWeave to buy Weights & Biases as it prepares for IPO

CoreWeave, backed by Nvidia, announced on Tuesday that it is acquiring AI developer platform Weights & Biases as part of its efforts to expand its cloud platform ahead of its upcoming IPO. The deal will merge CoreWeave’s infrastructure and managed cloud services with Weights & Biases’ AI model training and monitoring tools, which are used by major tech companies such as OpenAI and Meta.

While the financial terms of the deal were not disclosed, technology news site The Information reported that it could be valued at approximately $1.7 billion. CoreWeave, based in Roseland, New Jersey, has seen significant growth, with an eight-fold increase in revenue forecast for 2024.

CoreWeave, whose customers include companies like Meta, Microsoft, and hedge fund Jane Street, is aiming for a valuation exceeding $35 billion in its IPO later this year. The acquisition is seen as a move to strengthen CoreWeave’s position in the competitive AI market ahead of its New York listing.

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Amazon invests in AI to combat flooding in Aragon

Amazon has announced plans to use AI to help reduce flood risks in Spain’s northeastern region of Aragon, where it is building new data centres.

As part of its $17.9 million investment, Amazon’s cloud computing unit AWS will modernise infrastructure and optimise agricultural water use to tackle flood concerns.

The move follows catastrophic floods that impacted large areas around Valencia and comes as AWS continues its €15.7 billion expansion in the region’s cloud infrastructure.

The region is prone to flooding, especially along the Ebro River, highest-flow river in Spain, which crosses through Aragon on its way to the Mediterranean.

Amazon will deploy advanced cloud computing technologies to create an early warning system combining real-time data collection, sensor networks, and AI-powered analysis.

However, this system will help Zaragoza, the capital of Aragon, monitor flood risks more effectively and provide timely warnings to emergency services.

In addition to its technological investment, local authorities in Zaragoza are building flood defences at the Barranco de la Muerte, or Death Ravine, to mitigate future flood damage.

With these combined efforts, Amazon aims to contribute to reducing the region’s vulnerability to floods while supporting its own expanding data infrastructure.

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European groups back new cybersecurity label for cloud services

Twenty-three industry groups across Europe have urged EU officials to approve a draft cybersecurity certification for cloud services.

The certification scheme, which was introduced in 2020 by the European Union Agency for Cybersecurity (ENISA), aims to provide governments and businesses with reliable, secure cloud service providers.

It has been under revision since last year, with changes that favour major tech firms such as Microsoft, Google, and Amazon.

The groups, including the American Chamber of Commerce and various EU trade associations, argue that the updated draft, which will be finalised in March 2024, strikes a balance between robust security standards and an open market.

These revisions removed political provisions, such as requirements for US tech companies to partner with EU firms for data storage, focusing instead on technical security criteria.

Despite this, concerns linger about the European Commission potentially delaying or even scrapping the certification scheme altogether. The groups have strongly urged the EU to push forward with its adoption, believing it will support Europe’s digital economy while promoting secure cloud computing solutions.

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TikTok to invest $8.8 billion in Thailand data centres

TikTok, the popular video-sharing app owned by ByteDance, has unveiled plans to invest $8.8 billion in building data centres in Thailand over the next five years. The announcement was made by Helena Lersch, TikTok’s Vice President of Public Policy, during an event held in Bangkok on Friday. This investment marks a significant move as the company continues to expand its operations in the region.

The specific details of the investment remain unclear, particularly whether it includes a $3.8 billion agreement that was announced by Thailand’s investment board last month. The government’s investment board had previously detailed a deal aimed at boosting digital infrastructure in the country, but TikTok did not provide further clarification on the connection between the two.

This move highlights TikTok’s growing commitment to the Thai market and its broader strategy of increasing local data storage capabilities. As part of its ongoing efforts to expand its global presence, the company is investing in infrastructure to better serve its user base and meet regulatory requirements in key markets.

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