Microsoft is scaling back or delaying data centre developments in several countries, including Indonesia, the UK, Australia, and in certain US states, as it reassesses strategy.

According to individuals familiar with the matter, ongoing talks and planned builds have been paused in North Dakota, Illinois, Wisconsin, the UK midlands and Jakarta, Indonesia. The pullback comes amid questions about whether expected demand for AI services can support the pace and cost of Microsoft’s global data centre expansion.

Microsoft has acknowledged changing its strategy but declined to provide details about specific projects. “We plan our data centre capacity needs years in advance to ensure we have sufficient infrastructure in the right places,” a Microsoft spokesperson said. “As AI demand continues to grow, and our data centre presence continues to expand, the changes we have made demonstrates the flexibility of our strategy.”

Some of the shelved plans include a site near Chicago, and a proposed lease near Cambridge in the UK for a facility to host Nvidia hardware. Microsoft has also paused work at a site in Mount Pleasant, Wisconsin, where development has already cost US$262 million, according to documents reviewed by Bloomberg.

In Jakarta, parts of a data centre campus have been placed on hold. Elsewhere, Microsoft has walked away from a proposal to acquire more capacity from cloud infrastructure company CoreWeave. CoreWeave’s CEO Michael Intrator confirmed the decision, but did not specify which locations were affected.

In other cases, negotiations have slowed rather than stopped. At a server farm in North Dakota originally earmarked for Microsoft, discussions stalled until an exclusivity clause lapsed. Applied Digital, the data centre operator, has since found other tenants and secured funding to proceed with development.

At Ada Infrastructure’s Docklands site in London, Microsoft was in talks for about leasing 210-megawatt of capacity, but has is holding off on committing. The site is now being shown to other potential tenants, according to sources familiar with the matter.

Microsoft says it remains committed to key projects, which include a US$3.3 billion facility in Wisconsin and the launch of the Indonesia Central cloud region in mid-2025. It has maintained that it will spend roughly US$80 billion on data centre buildouts in its current fiscal year but signalled a shift in its next fiscal year toward equipping existing sites rather than construction of new data centres.

While Microsoft is re-evaluating, other firms are pressing on with large-scale infrastructure. OpenAI, Oracle, and SoftBank have announced joint venture Stargate, which aims to invest up to US$500 billion in AI infrastructure in the US. Stargate’s first phase includes a US$100 billion deployment in Texas, intended to support large-scale AI development.

The contrast in strategy between competing hyperscalers has drawn attention from investors and analysts. TD Cowen reported that Microsoft has abandoned projects amounting to two gigawatts of electricity capacity across the US and Europe. The firm suggested this may indicate a mismatch between expected demand and Microsoft’s existing capacity. Analysts also speculated that OpenAI may be shifting workloads from Microsoft to Oracle.

The change in infrastructure strategy is also being influenced by developments in the technology. Chinese AI firm DeepSeek claims it can deliver competitive AI performance using fewer resources, raising the possibility that future AI systems may require less computing power than originally anticipated.

At the same time, Microsoft’s adjustments may reflect external constraints. In cities like Dublin and Amsterdam, data centre growth has been met with tighter regulation due to concerns over electricity consumption and environmental sustainability. Dublin has limited new grid connections for data centres, while Amsterdam previously paused all new development to address strain on local resources.

Industry observers say hyperscalers are increasingly shifting focus to projects that can deliver results more quickly and cost-effectively. “You may have initially thought one data centre project would be the fastest speed to market, but then you realise that the labour, supply chain and power delivery wasn’t as quick as you thought,” said Ed Socia, director at datacentreHawk. “Then you would have to shift in the short term to focus on other markets.”

CoreWeave’s Michael Intrator said that Microsoft’s retreat appears to be specific to its situation. “It’s pretty localised, and their relationship with OpenAI has just changed,” he said.

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A growing number of North Korean IT workers are posing as remote freelancers from other countries in an effort to gain access to companies in Europe, raising concerns about potential espionage, data theft, and operational disruption.

According to Google’s Threat Intelligence Group (GTIG), these workers—who refer to themselves as “warriors”—are securing remote roles with foreign organisations to generate revenue for the Democratic People’s Republic of Korea (DPRK). The activity, previously concentrated in the United States, is now increasingly being observed in European countries such as Germany, the United Kingdom, and Portugal.

Since GTIG’s last report on DPRK IT worker activity, recent crackdowns in the US have made it more difficult for these individuals to secure and maintain employment there. According to a blog post by Jamie Collier, lead adviser for Europe at Google’s Threat Intelligence Group, GTIG has observed a rise in operations globally, with particular growth in Europe over the past few months. Countries targeted include Germany, the UK, and Portugal.

The workers often misrepresent their nationalities, claiming to be from countries such as Italy, Japan, Malaysia, Singapore, Ukraine, the United States, and Vietnam. They find jobs through freelance platforms like Upwork and Freelancer, as well as communication channels such as Telegram. Payments are typically made in cryptocurrency or through digital payment platforms including Wise and Payoneer.

Upwork provided a statement following publication, clarifying it did not receive the initial request for comment. The company said:

“Fraud prevention and compliance with US and international sanctions are critical priorities for Upwork. The tactics outlined in this report represent a challenge that affects the entire online work industry, and Upwork is at the forefront of combating these threats. Any attempt to use a false identity, misrepresent location, or take advantage of Upwork customers is a strict violation of our terms of use, and we take aggressive action to detect, block, and remove bad actors from our platform.

Upwork has long invested in industry-leading security and identity verification measures, deploying advanced technology alongside a dedicated team of global professionals across legal, investigations, intelligence, identity risk management, compliance, anti-money laundering, and machine learning detection. These experts work relentlessly to prevent fraudulent activity before it reaches our customers, and quickly respond to new methodologies and trends.

As fraud tactics evolve, Upwork continuously enhances its proactive screening for attempts to bypass geographic restrictions, monitoring for signs of misrepresentation both before and after contracts begin. Our sophisticated detection tools, paired with strong partnerships with law enforcement and regulatory bodies, enable us to take swift and decisive action when fraudulent behaviour is identified.

While no online platform is immune to fraud, Upwork is setting the standard for trust and safety in the industry. We will continue to invest in cutting-edge fraud prevention measures and vendor solutions, collaborate with industry stakeholders, and innovate to protect our customers and uphold the integrity of our marketplace.”

Freelancer, Telegram, Wise, and Payoneer did not respond to requests for comment.

GTIG reports that since October, there has been an uptick in cases where previously terminated workers attempt to extort their former employers by threatening to leak sensitive company information to competitors. Collier suggested that mounting pressure on these workers may be pushing them toward more aggressive tactics to maintain income.

One case in late 2024 involved a North Korean individual operating under at least 12 separate identities while applying to organisations in the defence and public sectors, reportedly using false references. In the UK, North Korean IT workers have been linked to work ranging from standard web development to more advanced projects in blockchain and artificial intelligence.

Google’s research points to risks associated with bring-your-own-device (BYOD) policies, where employees use personal devices to access internal systems. These setups often lack proper security oversight, making it more difficult to detect unauthorised access.

Authorities in the US and UK have issued multiple warnings about these activities. The FBI has advised firms to improve identity verification practices, while the US Treasury in January sanctioned two individuals and four entities accused of generating revenue for the North Korean government. Officials allege the regime withholds up to 90% of wages earned by these workers.

In a separate legal action, a US federal court in Missouri indicted 14 North Korean nationals in December for allegedly participating in an employment scheme that generated US$88 million over six years. Some of these individuals were reportedly employed by US firms for extended periods, earning hundreds of thousands of dollars without detection.

The UK’s Office of Financial Sanctions Implementation has also responded. In September, it recommended employers implement stricter identity checks, including video interviews, and advised against using cryptocurrency for payments.

Collier noted that North Korea has a long history of engaging in cyber operations to fund its regime. “A decade of diverse cyberattacks (encompassing SWIFT targeting, ransomware, cryptocurrency theft, and supply chain compromise), precedes North Korea’s latest surge,” he wrote.

“This relentless innovation demonstrates a longstanding commitment to fund the regime through cyber operations. Given DPRK IT workers’ operational success, North Korea will likely broaden its global reach. With APAC already impacted by these operations, this problem is set to escalate. These campaigns thrive on ignorance and will likely enjoy particular success in areas of APAC with less awareness of the threat.”

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A suspected supply chain cyber incident that includes Oracle Cloud has drawn attention from cybersecurity researchers and enterprise users alike. According to cybersecurity firm CloudSEK, a threat actor identified as “rose87168” claims to have accessed and extracted sensitive data from Oracle Cloud systems, including files and passwords associated with over 140,000 customer environments.

The data—allegedly obtained from Oracle’s Single Sign-On (SSO) and Lightweight Directory Access Protocol (LDAP) systems—includes encrypted credentials, Java KeyStore (JKS) files, and Enterprise Manager JPS keys. CloudSEK says the attack affects tenants across multiple regions and industries, with six million records reportedly compromised.

The activity was first observed in March 2025. In addition to listing the data for sale, the attacker has also used an X account to follow Oracle-related profiles, a move researchers believe may be intended to identify or pressure affected organisations.

Ransom demands and potential exploits

CloudSEK’s report suggests the threat actor has been active since January 2025 and is now demanding payment from companies included in the dataset. The actor is also said to be requesting help to decrypt the credentials in exchange for sharing parts of the data.

The breach appears to have involved the “login.(region-name).oraclecloud.com” endpoint, which is usually used to authenticate users on Oracle Cloud platforms. CloudSEK suspects that the attacker exploited an Oracle WebLogic Server vulnerability to access login services across different regions.

While the actor has no prior known history, researchers have noted the use of advanced tactics and an awareness of Oracle’s infrastructure.

CloudSEK has assigned a high-severity rating to the incident, citing risks such as data leaks, unauthorised access, and broader supply chain vulnerabilities if the stolen credentials are decrypted. The exposure of key files could, in theory, allow attackers to compromise systems connected to affected Oracle environments.

In response, CloudSEK has recommended immediate action from organisations using Oracle Cloud. Suggested steps include resetting credentials, conducting forensic investigations, monitoring dark web sources for leaked data, and reinforcing access controls.

Oracle denies any breach of its cloud systems

Following reports of a possible breach, Oracle has responded by stating that no intrusion into its cloud infrastructure has occurred. A company spokesperson told The Register that the credentials circulating online are not linked to Oracle Cloud and that no customer data has been exposed.

“There has been no breach of Oracle Cloud,” the spokesperson said. “The published credentials are not for the Oracle Cloud. No Oracle Cloud customers experienced a breach or lost any data.”

The denial comes after a user claiming to be behind the incident posted on a cybercrime forum, offering what they described as Oracle Cloud customer data for sale. The individual also uploaded a file to one of Oracle’s login servers—specifically login.us2.oraclecloud.com—as apparent proof of access. The file contained an email address tied to the seller and was archived on the Internet Archive’s Wayback Machine earlier this year.

Security researchers explore possible entry points

Security analysts reviewing the claims noted that the affected Oracle Cloud login server appeared to be running Oracle Fusion Middleware 11G as recently as February 2025. CloudSEK believes the server may not have been patched against CVE-2021-35587, a known critical vulnerability in Oracle Access Manager’s OpenSSO Agent.

If unpatched, that vulnerability could allow an attacker to gain access without authentication via a publicly available exploit. Whether this route was used in the alleged intrusion has not been confirmed, and Oracle has not commented further on the security posture of its login servers.

Data listing and extortion attempts surface online

On March 21, a user going by “rose87168” listed six million records for sale on BreachForums, claiming the data included Java KeyStore files, encrypted SSO and LDAP passwords, and Enterprise Manager keys. While the exact number of potentially affected organisations remains unclear, the attacker shared domain names of companies allegedly caught in the exposure and suggested that those wishing to avoid publication could pay for their information to be removed.

No specific asking price has been disclosed publicly, but the attacker reportedly approached Oracle with a demand for more than $200 million in cryptocurrency in exchange for full disclosure of the attack. That request was not accepted.

The forum post also included a call for help in decrypting the credentials. The attacker claimed they were unable to access the full dataset themselves but offered to share portions of it with anyone willing to assist.

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Google plans to acquire cybersecurity company Wiz for $32 billion in its largest-ever acquisition, strengthening the US giant’s position in the highly-competitive cloud computing market. If the deal is approved, Wiz will be integrated into Google Cloud, which generated $43.2 billion in revenue last year, up 64% from 2022.

The deal comes as Google faces antitrust inquiry in the United States, and lawsuits targeting its advertising practices and search engine dominance. Google’s acquisition of Wiz reflects a broader industry trend in which organisations seek to expand their cloud security capabilities in response to growing demand for data-intensive services.

Google’s push into cybersecurity

Google’s proposed acquisition of Wiz aims to strengthen its position in cloud, where it trails in third place behind Amazon and Microsoft.

Wiz, founded in 2020, has quickly become a major player in cloud security, obtaining contracts with large organisations to monitor and manage cloud vulnerabilities.

Wiz CEO Assaf Rappaport said the company shares Google’s goal of making cloud security more accessible and effective. “Wiz and Google Cloud are both fueled by the belief that cloud security needs to be easier, more accessible, more intelligent, and democratised, so more organisations can adopt and use cloud and AI securely,” they said in a blog post. Google CEO Sundar Pichai stated that the acquisition would let the company provide stronger security at a lower cost.

Wedbush analysts have described the deal as a strategic move to compete with Microsoft and Amazon, which have already invested heavily in cybersecurity. Google’s acquisition of Mandiant for $5.4 billion in 2022 helped boost its cloud division’s operating profit to $6.1 billion last year, and Wiz is expected to expand its portfolio of offerings.

High price and market impact

The $32 billion price tag exceeds Google’s previous largest deal – a $12.5 billion acquisition of Motorola Mobility in 2012. According to Mergermarket, the Wiz deal ranks among the 20 most expensive software company acquisitions to date. Investors have responded cautiously, with Alphabet’s shares dropping 2% following the announcement.

Google has been in discussions with Wiz for several months, reportedly increasing its offer from a previous $23 billion bid that was rejected in July. Wiz initially planned to pursue an IPO but decided against it owing to market volatility.

Industry-wide impact and antitrust concerns

The acquisition comes as the cybersecurity market continues to grow. Mark Smith, a director at Houlihan Lokey’s Technology Group, said the global cybersecurity market exceeds $50 billion, growing over 10% annually. Cloud security, in particular, is expanding even faster due to increasing threats and regulatory demands. “Strategic acquirers are competing to secure emerging technologies, driving up valuations,” he said. He highlighted AI’s role in shaping security measures and creating more resilient defences.

The Google-Wiz deal raises antitrust concerns. The US Justice Department has already filed cases against Google’s search and advertising businesses, threatening to force the company to divest itself of Chrome and/or Android. It’s thought, therefore, that regulators are expected to scrutinise the Wiz acquisition closely. The Justice Department is also exploring the impact made by Google’s deals to make its search engine the default for Apple and other platforms.

Despite these challenges, Google and Wiz anticipate the deal will close in 2026, pending regulatory approval and completion of other conditions. Analysts at Mergermarket believe the companies would not have agreed to the deal without seeing a clear path to approval under the Trump administration.

Business watchdog group, the Demand Progress Education Fund, has urged regulators to block the deal, arguing it would consolidate too much power in Google’s hands. Emily Peterson-Cassin, the group’s director of corporate power, said the acquisition would undermine competition in the cybersecurity market.

Future of cloud and cybersecurity

The Wiz deal reflects the trend of consolidation in the cybersecurity space. Google, Microsoft, and Amazon are investing heavily in cloud security to address rising threats and meet customer expectations for compliance and protection. According to Wedbush analysts, more deals will likely follow as organisations seek to boost their AI and security capabilities under a receptive US administration.

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The hardware comprises Lenovo’s ThinkSystem V4 servers, which the company says offer better performance.

Lenovo says the ThinkSystem servers can manage tasks from astrophysics to static site web serving. The servers can reportedly achieve up to 6.1 times more than those with the previous generation of processors. Onboard MRDIMM technology doubles memory bandwidth for accelerated data processing in AI applications.

Scott Tease, Vice President of Lenovo Infrastructure Solutions Group and General Manager of the Product Line, said, “The new Lenovo ThinkSystem V4 servers represent the next generation of performance and innovation, achieving higher compute with less energy consumption and delivering AI-powered management that empowers businesses with fast and protected AI deployment across any environment.”

Tease said that the new systems were designed to address challenges related to limited power availability and provide higher performance when handling compute-intensive AI tasks.

The three servers, SR630 V4, SR650 V4, and SR650a V4, are designed for different uses, from generic cloud services, AI workloads, and GPU-intensive tasks.

The SR630 V4 is space-efficient at only 1U high, so can provide high-density computing for the cloud and fintech. The SR650 V4 server offers up to a quarter more software GPU capacity and doubles computation performance compared to previous models at this price point. Lenovo states that it’s suitable for simulation, modelling, engineering, and AI workloads.

The SR650a V4 is designed to deliver maximum AI power, capable of handling GPU-intensive workloads like machine learning and media analytics. The 2U2s platform can support up to four double-width GPUs, and front panel GPU access makes it easy to upgrade cards.

Lenovo’s Neptune liquid-cooling is also capable of freeing up internal space and reduce power use by improving overall thermal efficiency. In turn, this creates room for more resources in existing racks.

Lenovo’s ThinkSystem servers include an optional locking bezel to secure servers and their internal hardware, a bonus in remote settings where physical access may be more vulnerable.

XClarity One, Lenovo’s centralised systems management platform helps deploy, monitor and manage IT infrastructures. It simplifies Lenovo ThinkSystem V4 servers’ operations, and uses AI analytics to monitor the server components’ health.

XClarity One now includes a ‘Federated Directory’ which allows the management of complete systems from a centralised point, rather than separate access controls for each application. The directory uses a unified registry and a single account.

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The experiences of building developers Adarsh Developers at the hands of cloud provider AWS is a cautionary tale for those organisations entrusting their most valuable assets to the cloud.

In May 2023, the company was persuaded to opt for a system upgrade by AWS to increase the security of its cloud-hosted assets. Adarsh Developers hosted its ERP platform, SAP S/4HANA, on AWS. Given that AWS and SAP held data vital to the company (including detailed financial records), the proposed update seemed like a sensible idea.

Fast forward to January 9th this year, and the company discovered that as of 10:48am, the entire SAP S/4HANA platform had been wiped from AWS disks, thus bringing the business to a complete halt. With no customer data, supplier details, financial information – everything, in fact – it was as if Adarsh Developers no longer existed on AWS. According to The Hindu, the company has since estimated its losses at ₹5 crores (around US$576,500) per day since Jan 9.

The Indian police have raised an FIR (first information report) against AWS under the IT Act, citing fraud and impersonation. Adarsh Developers states its financial losses due to the data outage are in excess of ₹100 crores (US$11.5 million), quoting this figure in the filing.

The company’s SAP integration and consultancy partner, SAVIC, has investigated the massive data loss, and placed the blame at the doors of AWS, and/or its reseller, the Redington Group. The company claims in the FIR that the deletion of Adarsh Developers’ data was invoked “at root level” (meaning by an account with superuser privileges) by Redington personnel.

AWS India, via a spokesperson to The Hindu, stated: “The claims against AWS are false. AWS operated as designed and is not responsible for the deletion […].” All the parties involved (SAVIC, Redington, AWS, and Adarsh Developers) have to submit technical data to back their stories.

The case and the issues surrounding massive data loss from cloud providers throw into relief several issues that are continuing concerns of data professional, operations managers, cybersecurity personnel, and systems providers.

• Any complexity in an IT supply chain increases the chances of data loss, and delays the identification of the root causes of critical issues (and therefore, their remediation),
• Service centralisation in terms of computing platforms (using an ERP as opposed to multiple point-products) comes with inherent risk,
• Provisioning a single cloud provider can create another point of failure.

If there is one lesson to be learned from the experience of Adarsh Developers, it is that cloud providers are not responsible for maintaining the integrity nor even continuing existence of data stored with them, and, therefore, are not responsible any client’s business continuity. Although companies like AWS, Microsoft, and Google are household names, there is no guarantee that a business’s assets kept by them are inviolable. Even such ‘givens’ as Office 365 email continuing reliably have to be questioned, and companies should take steps to ensure their own data is quickly recoverable, regardless of hosting and platform(s).

Whatever the eventual outcome of the Indian court proceedings, the victim in this case can’t hope to achieve enough compensation for its loss of business, reputation, and time. Cloud services are merely ‘someone else’s computer’. The realisation of the implications of centralisation, and in some cases, the high cost of cloud services is leading many organisations to adopt multi-cloud strategies, or take at least some of their critical systems back on-premise.

Human error is the most likely cause of the disaster that has befallen Adarsh Developers, and the culprit being established is moot, apart from giving Adarsh a possible source of compensation. Mistakes, misconfiguration, or security lapses will happen, and investment in appropriate recovery processes is (or should be) as central to modern businesses as email and internet access.

The most-publicised data losses stem from the activities of bad actors, either externally or in the guise of insider threats such as disgruntled employees. Simple human error gets little coverage.

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AirTrunk, a leading name in hyperscale data centres across Asia Pacific & Japan (APJ), is strengthening its foothold in Malaysia with plans for JHB2—its second cloud and AI-ready data centre in Johor’s Iskandar Puteri region. Once fully operational, JHB2 will offer over 270 megawatts (MW) of capacity, meeting the growing needs of global cloud and tech giants setting up shop in the area.

The announcement comes only months after AirTrunk launched JHB1, its first data centre in Johor, which went live in July 2024 with over 150MW. The two projects represent a massive RM9.7 billion (A$3.5 billion) investment, pushing AirTrunk’s total capacity in Malaysia to more than 420MW.

Powering Malaysia’s digital future

JHB2 is set to sit within a key availability zone and will offer seamless cross-border connectivity for customers operating across Malaysia and Singapore. The project supports Malaysia’s digital transformation goals while aligning with the Johor-Singapore Special Economic Zone (JS-SEZ)—a joint initiative aimed at driving regional growth.

Malaysia is positioning itself as the next big data centre hub in Asia, drawing global companies with land incentives and resources, especially as firms look beyond land-scarce Singapore. The approach is working—Johor was recently named Southeast Asia’s fastest-growing data centre market in 2024, driven partly by Singapore’s temporary pause on new data centres.

However, this rapid growth has brought challenges. Johor rejected nearly 30% of data centre applications in 2024, as authorities moved to protect local resources like water and electricity.

AirTrunk’s success in securing JHB2 despite this increasingly selective approval process highlights the company’s reputation and commitment to responsible, sustainable development.

Built for AI, built for the future

Like JHB1, JHB2 is built with AI in mind. It will feature advanced liquid cooling technology, allowing it to handle high-density AI workloads efficiently, all while keeping energy consumption in check.

JHB2’s design emphasises efficiency and sustainability. The facility will operate with a low Power Usage Effectiveness (PUE) of 1.25 and will provide customers with renewable energy options. However, since the proliferation of data centres in Malaysia raises concerns about water scarcity, JHB2 is addressing the resource challenge directly.

Addressing water scarcity with alternative solutions

Malaysia’s data centre expansion is putting pressure on public water supplies, particularly in Johor. The National Water Services Commission (SPAN) has warned that demand from data centres in key states far exceeds availability, forcing the regulator to write new guidelines requiring operators to use alternative water sources such as reclaimed, rainwater, or treated wastewater.

These rules are expected to be enforced by mid-2025, with a target to eliminate data centres’ reliance on potable water within three years.

AirTrunk is already ahead of the curve. The company is exploring the use of treated greywater for cooling at both JHB1 and JHB2, aligning with the government’s push for alternative water sources.

Insiders confirm that AirTrunk’s sustainability plans will ensure both facilities are well-prepared to meet SPAN’s upcoming requirements.

Driving the clean energy transition

AirTrunk’s Net Zero 2030 target is more than just talk—the company is taking real steps to reduce its carbon footprint:

• One of Southeast Asia’s largest onsite solar installations is already up and running at JHB1.
• Malaysia’s first Virtual Power Purchase Agreement (VPPA) has secured 30MW of renewable energy through the Corporate Green Power Programme.

At JHB2, AirTrunk is working with Malaysia’s utility provider, Tenaga Nasional Berhad (TNB), to fast-track high-voltage power supply within 12 months under TNB’s Green Lane Pathway for Data Centres.

The company is also providing land for a new substation, which will assist to improve the region’s power infrastructure.

Investing in local talent

AirTrunk’s involvement is more than just infrastructure; it’s also about people. Malaysia’s workforce is 90% local, with employees earning above-market salaries and having access to career development programs.

The company is supporting digital literacy initiatives and funding STEM scholarships at Universiti Teknologi Malaysia (UTM) to build up Malaysia’s future tech talent pipeline.

Pei Jet Lim, AirTrunk’s Country Head for Malaysia, summed it up this way:

“Combining long-term investment with high value local employment, training and social impact initiatives is central to our approach. As with JHB1, we have also continued to pioneer sustainable practices with JHB2, in line with our commitment to achieving Net Zero by 2030.”

Support from local leaders

The Menteri Besar of Johor, Dato’ Onn Hafiz Ghazi, praised AirTrunk’s continued commitment, emphasising its positive impact on jobs, skill development, and digital infrastructure:

“Ensuring high value employment and training opportunities, like those offered by AirTrunk, alongside the economic contribution of digital infrastructure also ensures a positive legacy for Johor. This will surely help in achieving the vision of Maju Johor by 2030.”

Expanding across Asia Pacific

With JHB2, AirTrunk’s regional footprint grows to 12 data centres across Australia, Hong Kong, Japan, Malaysia, and Singapore—bringing total capacity to nearly 1.8 gigawatts (GW).

For Malaysia, this expansion is about more than building data hubs. It’s fueling cloud and AI innovation while delivering long-term value to the economy, workforce, and environment.

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Alibaba Cloud is expanding its footprint in Thailand, launching its second data centre to meet the country’s growing demand for cloud services and support the region’s push toward digital transformation.

The new facility will strengthen Alibaba Cloud’s local capacity, enhancing disaster recovery capabilities and improving performance for businesses adopting cloud and AI technologies – especially those exploring generative AI applications.

“Our latest data centre strengthens our commitment to providing reliable, secure, and high-performance cloud services tailored to the needs of local businesses,” said Sean Yuan, Vice President of International Business at Alibaba Cloud Intelligence.

“With enhanced local infrastructure, we aim to empower enterprises to use the full potential of cloud technology, especially in generative AI applications.”

Expanding presence in Southeast Asia

The opening of the second Thai data centre brings Alibaba Cloud’s global infrastructure to 86 availability zones across 28 regions, further cementing its position as one of the leading cloud provider in Southeast Asia.

The first Thai data centre opened in 2022, and this latest expansion reflects growing demand from businesses in sectors like fintech, retail, and public services.

Alibaba Cloud isn’t alone in ramping up its investment in Thailand. Tencent operates two availability zones in Bangkok, while Amazon Web Services (AWS) launched its first Thailand region in January 2024. Meanwhile, Microsoft and Google are also building data centres, with Microsoft unveiling plans in May 2024 and Google following in September.

Tailored solutions for Thai businesses

With two local data centres, Alibaba Cloud is expanding its range of services to support businesses navigating digital transformation.

The company offers elastic computing, storage, databases, security, networks, AI-powered tools, and data analytics platforms, designed to help businesses tackle industry-specific challenges.

One such option is AnalyticDB’s cloud-native vector engine, which enables Thai fintech and retail businesses to build retrieval-augmented generation (RAG) applications.

The AI solutions assist businesses creating dedicated knowledge bases, managing structured and unstructured data, and developing chatbots and personalised customer experiences.

Alibaba Cloud has also introduced the Container Compute Service (ACS), which uses Kubernetes for workload management.

Building local partnerships and nurturing talent

Alibaba Cloud is actively collaborating with Thai companies and partners to advance digital transformation. The company has partnered with 70 local firms, including Cloud HM, Kaopanwa, Softdebut, Thai Data Cloud, and True IDC, to deliver cloud services and drive cloud adoption across industries.

Thai businesses like True Digital Group – part of True Corporation – are already using Alibaba Cloud’s database and container technologies to enhance the scalability of its energy platform.

Meanwhile, software company Codium has teamed with Alibaba Cloud to offer digital workplace solutions, strengthening the country’s cloud ecosystem. Alibaba Cloud collaborates with universities, including Chulalongkorn University, King Mongkut’s University of Technology Thonburi, Prince of Songkla University, and Bangkok University, offering cloud computing and AI training.

In late 2023, Alibaba Cloud launched its first global skills centre at Chulalongkorn University, providing free courses, boot camps, and AI competitions to help students and professionals build their careers.

A secure and resilient cloud platform

The company holds over 140 security and compliance certifications globally to enhance cyber protection and resilience. With two data centres now in place, businesses in Thailand can use Alibaba Cloud’s scalable platform for workloads that comply with local regulations.

Alibaba Cloud’s expansion in Thailand is part of a broader growth strategy. The company has announced plans to expand in Mexico, the Philippines, and South Korea.

Thailand is emerging as a hub for cloud infrastructure in Southeast Asia. Alibaba’s investment reflects its confidence in the region, and by expanding its presence, the company is offering businesses some of the tools they need to innovate and scale.

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Alibaba Cloud is the latest of the world’s tech giants to jump onto the DeepSeek bandwagon, offering the Chinese AI startup’s models to its customers. The move isn’t surprising – Microsoft, Amazon, Huawei, and others have already started offering DeepSeek’s open-source AI models to their users, signalling a growing industry trend.

In a WeChat post, Alibaba Cloud pointed out how “effortless” it is for users to train, deploy, and run AI models – with no coding required. The company claims the approach streamlines AI development, making it faster and more accessible for businesses and developers.

Alibaba Cloud users can now explore DeepSeek’s AI models in the PAI Model Gallery, a collection of open-source LLMs. The models can be used for everything from text generation to complex reasoning tasks. DeepSeek’s flagship models, DeepSeek-V3 and DeepSeek-R1, are particularly noteworthy, being designed to deliver high performance at a fraction of the cost and computing power typically required by industry heavyweights.

The Gallery also offers distilled versions of the larger model, like DeepSeek-R1-Distill-Qwen-7B, which provide similar capabilities while being more resource-efficient.

For those less familiar, LLMs power generative AI tools like the well-known ChatGPT from OpenAI. Open-source models give developers greater flexibility to tweak and refine AI capabilities, while model distillation – training smaller models to mimic the performance of larger ones – helps cut running (and training) costs without necessarily sacrificing too much performance.

Alibaba Cloud’s decision to incorporate DeepSeek’s models comes shortly after the company introduced its own Qwen 2.5-Max model, a direct competitor to DeepSeek-V3. Huawei’s decision to offer DeepSeek is part of a broader by major cloud providers.

Huawei staff worked through the Lunar New Year holidays with AI infrastructure startup SiliconFlow to integrate DeepSeek’s V3 and R1 models into its Ascend cloud service. Huawei claims that the DeepSeek models perform as well as those running on premium global GPUs.

As reported by South China Morning Post, SiliconFlow, which hosts the DeepSeek models, is offering discounted access to V3 at 1 yuan (US$0.13) per 1 million input tokens and 2 yuan for 1 million output tokens, while R1 access is priced at 4 yuan and 16 yuan, respectively.

Huawei’s Ascend cloud service uses its proprietary hardware, including self-developed server clusters, AI modules, and accelerator cards, indicative of China’s push to reduce reliance on foreign technology in the face of US trade restrictions.

Tencent is also on board, offering DeepSeek’s R1 model on its cloud computing platform, where users can get up and running with just a three-minute setup, the company claims. Meanwhile, Nvidia has added DeepSeek-R1 to its NIM microservice, emphasising its advanced reasoning capabilities and efficiency across tasks like logical inference, maths, coding, and language understanding.

Other tech giants are making similar moves, including AWS, the world’s largest provider of remote compute. Microsoft, a key investor in OpenAI, recently introduced R1 support on its Azure cloud and GitHub platforms, allowing developers to build AI applications that run locally on Copilot+ PCs.

But amid all the hype, not everyone is convinced that DeepSeek as revolutionising AI. Some experts argue that the startup’s claimed cost savings may be overstated. Fudan University computer science professor Zheng Xiaoqing pointed out that DeepSeek’s reported low training costs don’t account for earlier research and development expenses.

In an interview with National Business Daily, he said that DeepSeek’s advantage is based on engineering optimisations rather than groundbreaking AI innovation, meaning that the company’s engineering methods may not shake up the AI chip industry as much as some predict.

For now, though, DeepSeek’s models are quickly gaining traction, with major cloud providers racing to integrate them. The long-term impact of this trend on the AI industry remains to be seen, but one thing is certain: the competition for AI dominance is heating up.

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Two major initiatives were announced at the launch of Malaysia’s National AI Office (NAIO), marking a significant step forward in integrating generative AI into public services.

The initiatives are part of Google’s broader partnership with the Malaysian government, which includes a US$2 billion investment in a new Google data centre and Cloud region in Selangor’s Elmina Business Park. Construction on the facilities has been underway since October 2024.

Introducing ‘AI at Work’: A productivity boost for public officers

The first initiative, ‘AI at Work,’ is a collaboration between the Ministry of Digital and Google Cloud. The programme will integrate Gemini for Google Workspace into public officers’ daily routines, beginning with a pilot program at the Ministry of Digital. The goal is to enhance productivity by leveraging AI for tasks like report writing and meeting summaries, allowing officers to focus on strategic projects.

Gemini for Google Workspace is designed to be an “always-on” AI collaborator that streamlines workflows, creates visualisations, and improves communication in teams. Built with enterprise-grade protections, it ensures that sensitive data stays inside trusted boundaries.

Public officers using Gemini will gain access to a suite of productivity apps, like Gmail, Drive, Docs, Sheets, Slides, Meet, and Chat. Furthermore, NotebookLM, a personalised AI research assistant included as an add-on, enhances how public officers interact with legislative and policy documents.

NotebookLM: Transforming how public officers access information

NotebookLM stands out by allowing users to upload and query documents, extracting insights to support decision-making. For example, a public officer can upload files such as Google Docs, PDFs, or URLs and ask questions about their content. NotebookLM gives accurate answers with inline citations to ensure transparency. Aside from Q&A, the tool can generate summaries, briefing documents, timelines, and audio overviews, making it a useful assistant for public service personnel.

Google has also introduced new tools to enhance productivity and improve access to enterprise data. Google Agentspace, for instance, uses AI capabilities to help employees tackle tasks such as planning, research, and content creation. By combining Gemini’s reasoning abilities, search, and enterprise data, Agentspace enables employees to work more efficiently, regardless of where data is hosted.

NotebookLM is also being expanded for enterprises with a feature called NotebookLM Plus. Employees can use the tool to upload data, synthesise information, and extract insights, supporting more dynamic methods of engaging with content, such as Audio Overviews, which are similar to podcast-style summaries.

NotebookLM Plus prioritises security and privacy for organisational use, and an experimental version of Gemini 2.0 Flash is being integrated to improve the capabilities.

Serene Sia, Country Director for Malaysia and Singapore at Google Cloud, highlighted the importance of this initiative: “In alignment with NAIO’s goal of promoting AI innovation through collaboration, the AI at Work initiative by the Ministry of Digital and Google Cloud will empower public officers with secure and best-in-class AI tools to drive efficiency, innovation, and citizen-centric service delivery.”

Collaboration for responsible AI adoption

The second initiative focuses on policy and education. Google and NAIO are establishing an ‘AI Policy and Skilling Lab’ in Malaysia. The lab will serve as a hub for policymakers, industry experts, and other stakeholders to collaborate on AI-related challenges and opportunities. Through think tank discussions and workshops, the Lab aims to develop frameworks and best practices for the responsible use of AI.

Su Ann Lim, Head of Government Affairs and Public Policy for Google Cloud’s Southeast Asia Cluster, emphasised the Lab’s role: “The AI Policy and Skilling Lab aligns with the Malaysia government’s goals of operationalising safe and responsible AI. By fostering collaboration and knowledge sharing, this initiative will establish clear guidelines for AI adoption, ensuring its benefits are realised while mitigating potential risks. This will not only elevate Malaysia’s standing as a leader in the region for AI development and adoption but also attract investment and create new economic opportunities for Malaysians – especially ahead of the country’s ASEAN Chairmanship in 2025.”

Together, the initiatives highlight Malaysia’s ambitions to use AI for national development, demonstrating how technology and strategic partnerships can drive meaningful change in public service and beyond.

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