Petronas & Microsoft team up to boost AI in energy sector

Petronas and Microsoft entered into a memorandum of understanding (MoU) to enhance their strategic partnership, with the goal of promoting artificial intelligence (AI), digital innovation, and renewable energy solutions in Malaysia and throughout Asia.

The deal, unveiled at Energy Asia 2025, is in line with Malaysia's national aspiration to be an AI-enabled economy. The collaboration will combine Microsoft's technology expertise and Petronas' strengths in energy innovation to speed up digital transformation and operational sustainability in the energy industry.

“We believe that this partnership is a demonstration of our mutual interests to drive AI for significant and long-term progress. With the use of AI and digital technologies, we are able to create more value and efficiency in our operations.” Said Ir Ts Mohd Yusri Mohamed Yusof, Petronas Senior Vice President of Projects, Technology & Health, Safety, Security & Environment.

Key Highlights:

• Petronas and Microsoft sign MoU to accelerate AI and digital innovation in energy
• Partnership supports Malaysia’s vision of becoming an AI-enabled economy
• Focus on AI tools, cloud, cybersecurity, and building a local AI ecosystem

Key focus areas include the application of AI tools, cloud computing, data analytics, and cybersecurity to strengthen performance and environmental responsibility throughout Petronas’ operations.

Laurence Si, Managing Director Microsoft Malaysia highlighted the strategic significance of the collaboration, noting, “With the launch of our Malaysia West cloud region, we’re enabling scalable and secure digital transformation in the energy industry.”

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Apart from integrating technology, the collaboration will also support a robust local AI ecosystem. With collective development initiatives and cross-sector initiatives, Petronas and Microsoft are looking to establish Malaysia as an AI hub in the region.

"Wider cooperation across sectors will promote sustainable energy development and facilitate policy convergence," said both companies jointly.