Google to allocate $2 billion for data center and cloud services expansion in Malaysia

Google’s $2 billion investment in Malaysia to develop its first data center and Google Cloud region has sparked excitement and optimism in the country. The move, announced on Thursday, is seen as a significant step towards advancing Malaysia’s digital ambitions and boosting its tech industry.

With Southeast Asia becoming a hotbed for tech investment, Google’s decision to set up its data center and cloud region in Malaysia is a testament to the region’s potential. The country’s young and tech-savvy population of 670 million has been attracting global tech giants like Microsoft, Amazon, Nvidia, and Apple.

The data center, located in Sime Darby Property’s Elmina Business Park in Selangor state, will power essential services such as Search, Maps, and Workspace, as well as deliver AI services. The cloud region, on the other hand, will cater to local firms and public sector organizations, offering a range of services to support digital transformation.

Google’s Chief Financial Officer, Ruth Porat, expressed enthusiasm about the partnership with Malaysia, emphasizing the importance of creating an ecosystem for innovation. This collaboration follows a previous announcement of a joint effort between the government and Google to drive innovation domestically.

The tech industry in Malaysia is booming, with other giants like Microsoft, Amazon, and Nvidia also making significant investments in the region. Microsoft’s CEO recently announced cloud services investments in Malaysia and Indonesia, while YTL’s utilities unit is partnering with Nvidia for a $4.3 billion AI infrastructure project. Amazon, too, has ambitious investment plans in Singapore, Thailand, and Malaysia, further solidifying Southeast Asia’s position as a tech hub.