- Google to invest $2 billion in Malaysia to establish its first data centre and Google Cloud region.
- Investment expected to enhance Malaysia’s digital ambitions and AI capabilities, boosting local industry.
- Other tech giants like Microsoft, Amazon, and Nvidia also expanding their presence in Southeast Asia.
Google has announced a landmark investment of $2 billion in Malaysia to establish its first data centre and Google Cloud region in the country. This strategic move marks the latest wave of expansion by global tech giants into Southeast Asia, a region characterised by its youthful, tech-savvy population and burgeoning digital economy. The investment is set to bolster Malaysia’s digital transformation ambitions and enhance the local industry’s position in the global value chain.
Google investment announcement
Google, a unit of Alphabet, announced on Thursday its plan to invest $2 billion in Malaysia to develop its first data centre and Google Cloud region in the country. This move is part of a broader trend of global tech firms expanding into Southeast Asia. Google stated that the new data centre and cloud region will be located in Sime Darby Property’s Elmina Business Park in central Selangor state. The data centre will power services like Search, Maps, and Workspace, while the cloud centre will cater to local firms and public sector organisations, delivering advanced AI services.
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Government and industry impact
The Malaysian government welcomed the investment, noting that it would support the nation’s digital ambitions and enhance local industry capabilities. Google’s Chief Financial Officer Ruth Porat highlighted the partnership between Malaysia and Google, aimed at fostering an innovation-friendly ecosystem and unlocking the potential of digital transformation. Last November, Google and the government announced a collaboration focused on accelerating domestic innovation, underscoring the long-term commitment to the region’s digital growth.
Broader tech expansion in southeast Asia
Southeast Asia, with its young, tech-savvy population of 670 million, has been attracting significant interest and investment from global technology giants. Besides Google’s substantial investment, other major companies have also announced large-scale projects in the region.
Microsoft CEO Satya Nadella recently disclosed cloud services investments worth $2.2 billion in Malaysia and $1.7 billion in Indonesia. Similarly, Malaysian conglomerate YTL’s utilities unit partnered with Nvidia on a $4.3 billion AI infrastructure project. Amazon also revealed plans to invest $9 billion in Singapore, $5 billion in Thailand, and $6 billion in Malaysia, highlighting the region’s growing importance in the global tech landscape.
