JAKARTA - Microsoft is expanding its Southeast Asia operations with two large AI and cloud infrastructure investments in Singapore and Thailand.

The Redmond-based tech giant said on April 1 it is on track to spend US$5.5 billion from 2025 through 2029 on cloud and AI infrastructure and ongoing operations in Singapore.

Microsoft’s VP Brad Smith told a packed crowd at the Asia Tech x Inspire event when he announced the investment, “Our ongoing investment in cloud and AI infrastructure reflects Microsoft’s long-term confidence in Singapore as a global digital leader.”

The package also includes Microsoft Elevate programs that will give every tertiary student in Singapore free access to Microsoft 365 Premium with Copilot for 12 months, while teachers and nonprofit leaders will receive AI training.

A day earlier, on March 31, Smith announced that Microsoft will invest more than US$1 billion over the next two years in Thailand following a meeting with Thai Prime Minister Anutin Charnvirakul in Bangkok.

The investment will go toward building and operating cloud and AI data centers in Thailand and includes programs to train the local workforce in digital and AI skills.

“Our ambition is for Thailand to grow as a regional driving force in Asia’s digital and AI economy. To achieve this, we are focusing on building stronger foundations for the years to come,” said PM Charnvirakul, who was sworn into office in September 2025.

According to Microsoft’s AI diffusion data last year, Singapore stands out as a global leader. The country ranked second worldwide in the second half of 2025, with 60.9% of its working-age population using generative AI, far ahead of regional peers.

Elsewhere, adoption remains significantly lower but is trending upward. Vietnam reached 23.5%, while Malaysia recorded 19.7% and the Philippines 18.3%. Indonesia, Southeast Asia’s largest economy, lagged behind at 12.7%, though still up from 11.7% in the first half of the year.

Lower-income Southeast Asian markets remain at an earlier stage of adoption. Thailand saw usage rise to 10.7%, while Myanmar reached 9.1%, and Cambodia just 5.1%.

Recruitment data from Singapore’s Ministry of Manpower and hiring pulse reports show that demand for AI‑capable professionals such as AI engineers, data scientists and cybersecurity specialists is among the strongest in the country’s 2026 labour market.