Google is set to invest the equivalent of US$2 billion in Malaysia to develop its first data center and Google Cloud region in the country. That is the latest move in a wave of expansion by global tech firms into Southeast Asia.
Southeast Asia has been attracting plenty of interest and investment recently from technology giants, given its young tech-savvy population of 670 million, including Microsoft, Amazon, Nvidia, and Apple.
The government said the investment would advance Malaysia’s digital ambitions, and the artificial intelligence (AI) capabilities would help local industry to be more capable and sustainable.
The data center and cloud region will be located in Sime Darby Property’s Elmina Business Park, in central Selangor state.
The data center will power services including Search, Maps and Workspace, and will help deliver AI services, while the cloud center will offer services to local firms and public sector organizations.
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Google’s Chief Financial Officer Ruth Porat said in the statement: “Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation.”
Other tech giants have also been announcing large investments in the region, like Microsoft announcing cloud services investments worth $2.2 billion in Malaysia and $1.7 billion in Indonesia.
Malaysian conglomerate YTL’s utilities unit announced it would partner with Nvidia to develop AI infrastructure in a $4.3 billion investment deal.
Amazon has also announced plans to invest $9 billion in Singapore, $5 billion in Thailand and $6 billion in Malaysia.
Reuters contributed to this report.
