(CTN News) – Google has announced a $2 billion investment in Malaysia to establish its inaugural data center and Google Cloud region in the country, as Alphabet’s unit reported on Thursday. This move marks the latest in a series of expansions by global tech firms into Southeast Asia.
The Malaysian government views this investment as a significant step towards advancing the nation’s digital aspirations. The development of artificial intelligence (AI) capabilities and other advanced technologies is expected to propel local industries onto the global stage.
With a young, tech-savvy population of 670 million, Southeast Asia has become a focal point for major technology companies, including Microsoft, Amazon, Nvidia, and Apple, which are also increasing their presence and investments in the region.
Google’s Investment in Malaysia’s Digital Infrastructure
Google has confirmed that its data centre and cloud region will be situated in Sime Darby Property’s Elmina Business Park in central Selangor state, as stated in their announcement.
The data centre will support key services like Search, Maps, and Workspace, and will facilitate the delivery of AI services. Meanwhile, the cloud region will cater to local businesses and public sector organizations.
Ruth Porat, Google’s Chief Financial Officer, emphasized the partnership between Malaysia and Google in advancing their mutual goal of fostering an ecosystem supportive of innovation and unlocking the potential of digital transformation.
This announcement follows a collaboration agreement made public last November between the Malaysian government and Google aimed at accelerating domestic innovation. The region has seen significant investments from other tech giants as well.
Microsoft’s CEO Satya Nadella recently announced cloud service investments totaling $2.2 billion in Malaysia and $1.7 billion in Indonesia during his visit to the area.
Additionally, Malaysian conglomerate YTL’s utilities unit announced a partnership with Nvidia to develop AI infrastructure in a $4.3 billion investment deal in December.