Google to pour $2 billion into data center and cloud services in Malaysia

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

With Southeast Asia’s young and tech-savvy population of 670 million, global tech giants like Google, Microsoft, Amazon, Nvidia, and Apple have been increasingly drawn to the region. Google’s decision to establish its data centre and cloud region in Selangor state’s Elmina Business Park is expected to power services such as Search, Maps, and Workspace, while also delivering AI services to local firms and public sector organizations.

Google’s Chief Financial Officer Ruth Porat expressed enthusiasm about the partnership with Malaysia, stating that it aims to create a supportive ecosystem for innovation and unlock the potential of digital transformation. This investment comes on the heels of a collaboration announced last November between the Malaysian government and Google to drive innovation domestically.

The tech industry in Southeast Asia is experiencing a surge of investments from various global players. Microsoft CEO Satya Nadella recently announced significant cloud services investments in Malaysia and Indonesia, while Malaysian conglomerate YTL’s utilities unit partnered with Nvidia in a $4.3 billion deal to develop AI infrastructure. Amazon has also unveiled plans to invest billions in Singapore, Thailand, and Malaysia.

Overall, Google’s investment in Malaysia is a testament to the country’s growing importance in the tech landscape and its potential to become a hub for innovation and digital transformation in the region.