Google, a subsidiary of Alphabet, announced that it will invest $2 billion to develop its first data center and Google Cloud region in Malaysia. This investment is part of a wave of expansion by global tech firms into Southeast Asia.
Advancing Malaysia’s digital ambitions
The Malaysian government stated that this investment will advance the country’s digital ambitions and that the artificial intelligence (AI) capabilities and other advanced technologies will help local industries move up the global value chain. Southeast Asia, with its young and tech-savvy population of 670 million, has been attracting significant interest and investment from technology giants, including Microsoft, Amazon, Nvidia, and Apple.
Location and services of the new facilities
Google’s data center will be located in Sime Darby Property’s Elmina Business Park in central Selangor state. This data center will power services such as Search, Maps, and Workspace, and will help deliver AI services. The cloud center will offer services to local firms and public sector organizations.
Partnership to drive innovation
“Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation,” said Google’s Chief Financial Officer, Ruth Porat, in the statement.
Collaboration and investments by other tech firms
In November 2023, the Malaysian government and Google announced a collaboration aimed at accelerating domestic innovation. Other tech giants have also been announcing large investments in the region, such as Microsoft’s cloud services investments worth $2.2 billion in Malaysia and $1.7 billion in Indonesia, and YTL’s partnership 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.
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