Alibaba Cloud, Equinix back Malaysia’s RM2b Sovereign AI Cloud, pledging data sovereignty and compliance.
PETALING JAYA: As Malaysia allocates RM2 billion under Budget 2026 to develop a Sovereign AI Cloud, major foreign cloud operators have pledged to comply with local data-governance rules, while emphasising that control over hosted data rests with clients.
Alibaba Cloud and Equinix, two of the largest international providers operating locally, said their Malaysian data centres are subject to national law and do not grant them access to customer information.
Alibaba Cloud Malaysia general manager Kun Huang said the company’s three local data centres, including one launched in July, are built to meet national cybersecurity and data-sovereignty standards.
“We work with local partners to ensure that our cloud services are secure and compliant with national data-sovereignty regulations.”
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He added that Alibaba Cloud supports government initiatives such as the Sovereign AI Cloud and the National Centre for Cybersecurity and Cryptology Development, adding that demand for secure, locally governed infrastructure continues to grow.
Although Alibaba Cloud is not part of the federal Cloud Framework Agreement, which governs how sensitive government data is hosted, the company continues to collaborate with state-level agencies and local enterprises under programmes such as the Selangor Multi-Cloud Services initiative.
Equinix Malaysia managing director Cheam Tat Inn said the company’s facilities in Kuala Lumpur and Johor are also designed to meet Malaysian regulatory standards.
“Equinix does not own, manage or access customer data. That authority remains entirely with the data owner.
If a foreign entity were to request access, the decision would rest with the data controller, not Equinix.”
Cheam said digital sovereignty should not be defined solely by ownership, but by operational transparency and compliance.
“Digital trust is built on transparency, security and interoperability. By combining sovereign control with globally consistent infrastructure, Malaysia could scale its AI ambitions while safeguarding the integrity of its data.”
