Microsoft’s commitment to supporting cloud infrastructure demand in Asia

Microsoft is significantly enhancing its cloud infrastructure across Asia to support organisations looking to grow with secure, AI-ready services. Find out more here.

Microsoft Fuels Cloud Infrastructure Demand in Asia

With Asia leading the charge in digital transformation, Microsoft is dedicated to broadening its cloud infrastructure to meet the region’s rising demand. In 2025, new Azure datacentre regions were launched in Malaysia and Indonesia, with further expansions planned for India and Taiwan in 2026. Notably, Microsoft has plans for a second datacentre region in Malaysia, named Southeast Asia 3. The company is investing billions across Asian markets to bolster its AI infrastructure, providing advanced AI capabilities, next-generation networking, and scalable storage to the world’s most populous region. These developments will enable businesses across Asia to grow effortlessly, unlock valuable insights from their data, and seize new growth opportunities.

Microsoft’s global infrastructure includes over 70 datacentre regions in 33 countries, outpacing all other cloud providers. In Asia, where sectors such as finance, public services, manufacturing, retail, and start-ups are closely woven into the global economy, Microsoft’s strategically placed datacentres ensure seamless scalability, low-latency connectivity, and compliance assurances. By keeping critical data and applications close to users on fault-tolerant, high-capacity networking, organisations can confidently engage in local and global markets, delivering fast and reliable services that align with customer expectations and legal requirements.

Currently, with a dozen datacentre regions active in Asia, we are making substantial investments to broaden our presence on the continent. These developments will become key components of our regional infrastructure:

East Asia

East Asia, a long-established market in our Japan and Korea regions, will continue to grow. In April 2025, Microsoft launched Azure Availability Zones in the Japan West region, boosting resilience and efficiency as part of a comprehensive two-year strategy to invest in Japan’s AI and cloud ecosystem.

Furthermore, Microsoft announced the rollout of Microsoft 365, along with data residency solutions for commercial users in the Taiwan North cloud region. While Azure services are already available for select customers, general access is anticipated by 2026.

Southeast Asian Countries

Microsoft is also deepening its investments in nations across Southeast Asia, highlighted by the introduction of new cloud regions in Indonesia and Malaysia in May 2025. The newly established regions feature AI-enhanced hyperscale cloud infrastructure and three availability zones, ensuring secure and low-latency access to cloud services for businesses throughout Southeast Asia.

The recently inaugurated Indonesia Central region is a valuable addition, providing comprehensive Azure services and local Microsoft 365 availability, enabling customers to innovate more effectively. Our ongoing investments in Indonesia are aimed at fostering significant expansion, making this datacentre region one of the largest in Asia in the upcoming years. At present, over 100 organisations are utilising the Microsoft Cloud from Indonesia to expedite their transformation, including:

• Binus University is harnessing Azure Machine Learning and the Azure OpenAI Service to enhance both campus operations and student learning. AI facilitates accurate student intake forecasts and automates diploma summary processing for over 10,000 graduates each year, boosting operational efficiency. On the academic front, BINUS is developing AI-driven tools such as personalised AI Tutors, generative AI for tailored book recommendations, and the Beelingua platform for interactive language learning, all aimed at delivering a more adaptive and inclusive educational experience.
• GoTo Group is integrating GitHub Copilot into its engineering workflows to enhance productivity and innovation. Nearly a thousand engineers have adopted this AI-powered coding assistant, benefiting from real-time suggestions, chat-based assistance, and simplified explanations of complex code, significantly expediting the innovation process.
• Customers like Adaro, BCA, Binus University, Pertamina, Telkom Indonesia, and Manulife are leveraging the Indonesia Central cloud region for on-premises access to Microsoft’s hyperscale infrastructure.

The Malaysia West datacentre region, our inaugural cloud region in the country, is vital for facilitating Malaysia’s digital and AI evolution with access to Azure and Microsoft 365. A diverse range of organisations, enterprises, and start-ups are already tapping into the Malaysia West region, including:

• PETRONAS, the global energy and solutions provider from Malaysia, is partnering with Microsoft to utilise hyperscale cloud infrastructure to advance its digital and AI transformation, as well as its clean energy initiatives in Asia.
• Other users of Microsoft’s new cloud region include FinHero, SCICOM Berhad, Senang, SIRIM Berhad, TNG Digital (the operator of TNG eWallet), and Veeam, with more organisations expected to join as the demand for secure, scalable, and locally-hosted cloud services escalates across various industries.

In Malaysia, Microsoft is further extending its digital infrastructure with another datacentre region, Southeast Asia 3, slated for Johor Bahru. Once operational, this next-generation region will showcase Microsoft’s most comprehensive and strategic cloud services, tailored to support advanced workloads and meet evolving customer demands across the region.

In addition to developments in Indonesia and Malaysia, Microsoft also announced a substantial commitment in 2024 to foster a cloud and AI-driven future for Thailand.

The Indian Subcontinent

The Indian region already has multiple datacentres operational, with plans for the India South Central datacentre in Hyderabad set to launch in 2026. This is part of a US $3 billion investment in cloud and AI infrastructure over two years in India.

Explore a Multi-Region Strategy

Microsoft aims to empower your organisation to grow and thrive with unmatched performance and availability. A key strategy for fostering growth is to carefully select the right Azure regions.

Our investments in Asia are motivated by the need for enhanced agility and flexibility in today’s evolving cloud landscape. By avoiding dependence on a single region, organisations can build a more resilient foundation while optimising performance. This approach grants access to Azure services, resources, and capacity across a wider geographical range. A multi-region strategy allows businesses to quickly adapt to shifting demands whilst maintaining elevated service levels. Our cloud infrastructure facilitates this flexibility by distributing services over various regions, ensuring responsiveness and scalability during peak periods. Utilising a multi-region cloud architecture with any of our Asia-based regions can significantly enhance application performance, reduce latency, and bolster the overall reliability and availability of cloud applications—helping organisations maintain a competitive edge in a rapidly changing digital arena.

Cost Optimisation Opportunities

Pricing is a pivotal consideration when choosing the appropriate Azure regions for your organisation. Thanks to our substantial investments in Asia, Microsoft can now provide newer and more economical Azure regions tailored for both small and large organisations. Our latest regions, like Indonesia Central, are specifically designed to offer greater choice and flexibility, enabling enterprises to streamline cloud expenditures while ensuring high performance and availability.

Enhance Your Cloud Strategy

Utilise the Cloud Adoption Framework for expert guidance and resources to achieve your cloud objectives effectively.

Employ the Well-Architected Framework to fine-tune workloads, with recommendations for crafting robust, secure, and high-performing solutions on Azure.

By selecting to deploy services through any of our Azure regions, customers can take advantage of the diverse and resilient infrastructure Microsoft is developing across Asia. This strategy not only enhances resilience and flexibility but also opens up avenues for innovative solutions that stimulate economic growth and pave the way for a more interconnected future.