As Asia accelerates its digital transformation, Microsoft is ramping up its cloud infrastructure investments to meet growing demand across the continent. In 2025, the company launched new Azure datacenter regions in Malaysia and Indonesia, with further expansions planned for India and Taiwan in 2026. Microsoft has also confirmed plans for a second datacenter region in Malaysia, Southeast Asia 3, reflecting its commitment to supporting the region’s digital and AI growth.
The company is investing billions to broaden its AI infrastructure footprint across Asia, providing enterprises with advanced AI capabilities, next-generation networking, and scalable storage. These investments aim to help organizations unlock the full value of their data, scale operations seamlessly, and explore new growth opportunities.
Microsoft’s global infrastructure already spans over 70 datacenter regions in 33 countries—more than any other cloud provider. In Asia, these strategically distributed datacenters offer low-latency connectivity, fault-tolerant networking, and compliance with data residency and regulatory requirements, catering to industries including financial services, public sector, manufacturing, retail, and startups.
Regional Expansion Highlights
East Asia: Microsoft continues to grow in Japan and Korea, with Azure Availability Zones launched in Japan West in April 2025, enhancing resilience and efficiency. In Taiwan, Microsoft 365 and related data residency services are now available for commercial customers, with full Azure availability expected in 2026.
Southeast Asia: New datacenter regions in Indonesia and Malaysia, launched in May 2025, feature AI-ready hyperscale infrastructure and three availability zones to provide secure, low-latency cloud access. The Indonesia Central region delivers comprehensive Azure services and Microsoft 365 access, positioning it as a major cloud hub in the region. Malaysia’s first region, Malaysia West, supports the country’s digital and AI transformation, while the planned Southeast Asia 3 region in Johor Bahru will offer Microsoft’s most advanced cloud services. Microsoft has also announced a commitment to Thailand’s cloud and AI future.
India: Microsoft already operates multiple datacenter regions in India and will expand further with the India South Central region in Hyderabad, launching in 2026 as part of a $3 billion investment over two years.
Microsoft emphasizes that a multi-region cloud strategy provides organizations with greater flexibility, resilience, and scalability. By distributing services across multiple Asian datacenters, businesses can optimize performance, maintain high service levels, and respond rapidly to evolving demands in a dynamic digital landscape.
