Tencent Cloud, the cloud business of technology giant Tencent Holdings (HKG:0700), plans to establish its first cloud region in Malaysia, according to a statement released on Tuesday.

Tencent's shares were up nearly 1% in Wednesday's trade.

The proposed region, which will comprise up to three availability zones in Johor, will help to connect Malaysia to Tencent Cloud's global network of 66 Availability Zones across 23 regions.

Tencent Cloud will also partner with Universiti Teknologi Malaysia (UTM) to develop over 1,000 digital and AI talents with industry-relevant skills over the coming years.

The expansion is expected to boost Tencent Cloud's infrastructure presence in Malaysia by providing local enterprises in Malaysia with the secure, resilient foundation needed for AI-powered workflows, data-heavy applications, and the delivery of digital services at scale.