PETRONAS and Microsoft signed a Memorandum of Understanding, further extending their strategic collaboration in multiple areas across innovation and sustainability to support the development of an Artificial Intelligence enabled economy and ecosystem in Malaysia, while advancing efforts toward energy transition in Asia.

At the signing ceremony held on the sidelines of Energy Asia 2025, PETRONAS was represented by its Senior Vice President of Projects, Technology & Health, Safety, Security & Environment (PT&HSSE), Ir Ts Mohd Yusri Mohamed Yusof and Vice President of Group Technology & Commercialisation, Izwan Ismail. Microsoft Malaysia was represented by its Managing Director, Laurence Si.

Ir Ts Mohd Yusri said, “At PETRONAS, innovation goes beyond technology – it is about shaping a future where energy is smarter, cleaner, and sustainable for not only the organisations involved, but also the nation and its people.

“Our collaboration with Microsoft is driven by a shared commitment to meaningful innovation and sustainable progress. By harnessing our joint expertise in innovation and sustainability, we are steadfast in advancing adoption of AI and Cloud capabilities in a manner that promotes sustainable energy practices, in support of Malaysia’s aspirations of building an AI economy with a robust ecosystem in which everyone thrives,” he added.

Si said, “As a trusted technology partner to PETRONAS, we are thrilled to strengthen our collaboration to help advance their digital and AI transformation. With Microsoft’s new cloud region in Malaysia, we are committed to supporting PETRONAS with secure, scalable, and sustainable cloud solutions that will drive growth and innovation in Malaysia’s energy sector.”

The collaboration will focus on fostering an ecosystem in Malaysia that enables organisations to harness AI’s potential for economic advancement and societal benefit. With nation building at heart, the companies will support Malaysia’s efforts to build regional leadership in AI capabilities and develop a strong local AI ecosystem through joint programmes.

Under the collaboration, PETRONAS and Microsoft will explore further initiatives to intensify AI and energy innovation leveraging Microsoft’s newly launched Malaysia West cloud region. They will look into entrenching Agentic AI, Microsoft Copilot, data analytics, cloud computing and cybersecurity among other technologies, to unlock new levels of operational efficiency and sustainability performance across its value chain.

The parties will also explore a holistic collaboration across industries to promote sustainable energy and policy alignment.