In a significant move to bolster its presence in Southeast Asia, Google has announced plans to invest $2 billion in Malaysia, marking its first data centre and cloud region in the country. The investment, part of Alphabet’s expansion strategy, aims to support Malaysia’s digital ambitions and enhance the capabilities of local industries.
With a burgeoning population of 670 million in Southeast Asia, the region has become a hotspot for tech giants like Microsoft, Amazon, Nvidia, and Apple, all eyeing its tech-savvy demographic. Google’s decision to establish its data centre and cloud region in Malaysia underscores the country’s growing importance as a hub for digital innovation.
According to Google’s statement, the data centre, located in Sime Darby Property’s Elmina Business Park in Selangor state, will power various services such as Search, Maps, and Workspace, while also facilitating the delivery of AI services. The cloud region, on the other hand, will cater to the needs of local businesses and public sector organizations.
“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 Ruth Porat, Google’s Chief Financial Officer, emphasizing the collaborative effort between the tech giant and the Malaysian government.
This investment follows a collaboration between the government and Google announced last November, aimed at accelerating domestic innovation. Other tech giants have also been ramping up their investments in the region, with Microsoft announcing cloud services investments worth $2.2 billion in Malaysia and $1.7 billion in Indonesia.
In a similar vein, Malaysian conglomerate YTL’s utilities unit recently partnered with Nvidia to develop AI infrastructure in a $4.3 billion investment deal. Amazon, too, has announced substantial investments in the region, with plans to invest $9 billion in Singapore, $5 billion in Thailand, and $6 billion in Malaysia, further underscoring the growing importance of Southeast Asia in the global tech landscape.
