Microsoft and Amazon Ramp up AI and Cloud Investment in ASEAN

Microsoft and Amazon Web Services (AWS) are expanding their footprint across Southeast Asia with new cloud and AI infrastructure investments.

Most recently, Microsoft announced its new investment initiatives in Malaysia ($2.2 billion by 2028) and Indonesia ($1.7 billion by 2028). The investments aim to help develop cloud and AI infrastructure as well as create AI skilling opportunities in both the countries.

Moreover, Microsoft will partner with the Malaysian government to build a national AI Centre of Excellence, as well as boost the nation’s cybersecurity capabilities.

Meanwhile, Amazon’s Chief Technology Officer, Werner Vogels, discussed Amazon’s expansion plans with CNBC, which are aimed at meeting customer demands for local data storage.

Supporting the Association of Southeast Asian Nations’ (ASEAN) aim of boosting its digital economy to $2.7 trillion by 2030 under the Digital Economy Framework Agreement (DEFA), the tech giants have pledged multi-billion-dollar investments in the area.

Amazon, through its cloud computing division, Amazon Web Services, has been supporting development of cloud infrastructure in Southeast Asia since 2010. The company established its first $6.5 billion AWS region in Singapore. AWS region is a physical location where data centers are clustered.

Demand for AWS cloud computing services as well as interest in accelerating the adoption of new technologies, including AI, propelled Amazon to launch new cloud infrastructure regions in ASEAN countries. In 2021, a new region was established in Indonesia, with a planned investment of $5 billion by 2036.

Amazon later announced several similar investments, including a 2023 announcement of $6 billion in Malaysia and $5 billion in Thailand. These planned investments are earmarked until 2037.

Following close on the heels of its competitor, Microsoft announced several key investments in this region. Earlier, in April 2024, the company announced a $2.9 billion AI and cloud infrastructure investment in Japan.

To support these expansion plans and boost demand for its generating AI technologies, Microsoft, on April 30, also revealed its plans to provide AI skilling opportunities to 2.5 million people in the ASEAN region by 2025. The countries that will largely benefit from the program include Thailand, Indonesia, Malaysia, Vietnam, and the Philippines.