- Microsoft to launch Southeast Asia 3 region in Johor Bahru to enhance cloud offerings across the region
- New data centre to focus on sustainability with renewable energy and water-efficient systems
What happened: Microsoft launches Southeast Asia 3 cloud region in Johor Bahru, focusing on AI and sustainability
Microsoft has announced the launch of its Southeast Asia 3 cloud region in Johor Bahru, Malaysia, expanding its cloud services network to better meet the growing demand for complex workloads across the region. Once operational, the Johor Bahru data centre will join Microsoft Azure’s global network of more than 70 regions, offering a range of services tailored to meet the diverse needs of businesses, governments, and individuals in Southeast Asia.
This new region follows the earlier launch of the Malaysia West cloud region in Greater Kuala Lumpur, which focused on accelerating AI adoption in Malaysia. The Johor Bahru-based facility will incorporate sustainable technologies, including biofuel-powered generators, water-efficient closed-loop cooling systems, and zero-water evaporation systems for cooling. Additionally, Microsoft is working with local partners to install rainwater harvesting systems in 42 schools in Johor, benefiting approximately 20,000 people and saving 8.4 million litres of water annually.
The announcement comes as Microsoft continues to invest in AI capabilities in the region, with plans to equip 800,000 Malaysians with AI skills by 2025 through the AIForMYFuture programme.
Also Read: Taiwan puts Huawei and SMIC on export control list
Also Read: Trump tariffs hit Apple and Samsung as Huawei grows
Why it’s important
The establishment of the Southeast Asia 3 cloud region reflects Microsoft’s growing commitment to supporting the digital transformation and AI-driven innovation in Southeast Asia. As the region remains one of the fastest-growing markets for cloud services, the new facility will offer enhanced local access to Azure’s capabilities while helping meet the rising demand for sustainable cloud infrastructure.
The move also aligns with Malaysia’s digital economy goals, with the country positioning itself as a key hub for digital assets in the region. The collaboration between Microsoft and local partners highlights the increasing importance of both technology infrastructure and community-driven sustainability projects, which will contribute to the broader goal of fostering a resilient and environmentally conscious digital economy.
