New AWS Malaysia cloud region set to open in 2024

AWS’s new Malaysia cloud region is set to officially launch in 2024 as the cloud computing giant looks to solidify operations in Southeast Asia. 

The new cloud region was first announced in March 2023, with AWS committing to investing $6 billion on ramping up infrastructure in the country. The latest update puts into motion a general timeframe for launch, however exact dates are yet to be confirmed.  

The confirmation follows the opening of AWS’ first office in Kuala Lumpur in June 2023, which it said at the time formed part of a bid to create a firmer foothold in the country. 

“Since 2016, Amazon Web Services (AWS) has made deep investments in Malaysia, serving customers and unlocking transformation across industries” the company said in a statement. 

“Today, AWS reaffirmed its commitment, announcing that the new AWS Region in Malaysia will be live in 2024. 

“AWS’s previously announced pledge to invest MYR 25.5 billion and build a new AWS Region in Malaysia by 2037 will give developers, startups, entrepreneurs, and enterprises, as well as government, education, and nonprofit organizations greater choice when running their applications and serving end users from data centers located in Malaysia.”

Malaysian generative AI adoption

Increased adoption of generative AI technology in Malaysia has also contributed to the AWS’ expansion, the company said. 

AWS noted that it has observed a “ wave of widespread adoption” of generative AI in Malaysia in recent months. 

The firm said the new cloud region will play a key role in providing infrastructure for organizations exploring the development and deployment of the technology. 

AWS support for Malaysia digitization

AWS’ push in Malaysia forms part of a broader effort to both expand infrastructure services across Southeast Asia and foster closer ties with organizations operating in Malaysia. 

The cloud giant has close ties with public sector organizations in the country and is playing a key role in supporting the nation’s digital transformation, according to Chuah Seng Heng, country manager for worldwide public sector at AWS in Malaysia.

“In Malaysia, we're not just building infrastructure, we’re spurring a wave of digital transformation and investing in a digital workforce that will shape the nation's future,” he said. 

“The new AWS Region will empower Malaysia to accelerate cloud adoption in the public sector and help agencies transform the way citizen services are delivered.

Southeast Asia cloud competition

When AWS first unveiled plans to launch the Malaysia cloud region in March 2023, it came during a period of accelerated competition in the region. 

The cloud giant isn’t alone in its expansion efforts in Southeast Asia. Microsoft and Google have both made significant strides in the region with the launch of cloud regions and efforts to attract customers. 

However, the aforementioned hyperscalers are also facing competition from Chinese competitors in the cloud computing space. 

Alibaba Cloud, Huawei, and Tencent have all expanded operations in the region over the last 18 months, with Alibaba announcing plans to invest $1 billion to support regional expansion in September 2022.