By Chester Tay 
 

KUALA LUMPUR--Microsoft Corp. will invest at least $1 billion in Malaysia to build data centers to deliver cloud services locally, a move that comes as the Southeast Asian nation works to stem an outflow of foreign investment.

The U.S. tech giant said Monday it will partner with local entities to establish its first data-center region in the country to deliver access to its suite of cloud services.

Microsoft, together with local partner Enfrasys Solutions Sdn., has also been appointed by the Malaysian government to provide cloud services to the country's public-sector agencies through 2023.

The data-center region "will be a game-changer for Malaysia, enabling the government and businesses to reimagine and transform their operations, to the benefit of all citizens," Jean-Philippe Courtois, Microsoft's president of global sales, marketing and operations said in a statement.

Malaysian Prime Minister Muhyiddin Yassin said the investment would reach at least $1 billion over five years.

Microsoft will partner with companies including state-owned oil firm Petroliam Nasional Bhd., Celcom Axiata Bhd. and Grab Holdings Inc.

The announcement comes as the Southeast Asian nation is battling an outflow of foreign direct investment. Earlier this year International Business Machines Corp. said it will shut down a satellite office in Malaysia's Selangor state and keep only one head office, while German IT company T-Systems International GmbH exited the country last November.

 

Write to Chester Tay at chester.tay@wsj.com

 

(END) Dow Jones Newswires

April 19, 2021 06:20 ET (10:20 GMT)

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