Google has announced a significant investment of US$2 billion in Malaysia to set up its first data center and Google Cloud region in the country. The move is part of a broader trend of global technology companies expanding into the Southeast Asian market. The investment is aimed at boosting Malaysia’s digital and artificial intelligence (AI) capabilities and supporting local industries to climb the global value chain.
The data center, which will be located at Sime Darby Property’s Elmina Business Park in Selangor, is designed to support services such as Search, Maps and Workspace. It will also contribute to the provision of AI services. In addition, the cloud center will provide services to Malaysian companies and public sector organisations.
Ruth Porat, Google’s chief financial officer, highlighted the collaborative nature of the investment, saying, “Malaysia and Google are working together to advance our shared work to create an ecosystem that supports innovation and unlocks the potential of digital transformation.” The partnership follows an earlier announcement in November, where the Malaysian government and Google pledged to promote innovation in the country.
Google’s investment in Malaysia is not an isolated case. Southeast Asia, with its young and increasingly tech-savvy population of 670 million, has become a magnet for investment from tech heavyweights. The CEO of Microsoft (NASDAQ:MSFT) said:MSFT), Satya Nadella revealed that the company is investing $2.2 billion in Malaysia and $1.7 billion in Indonesia for cloud services.
Other tech giants have also been active in the region. In December, YTL’s Malaysian utility unit announced a partnership with Nvidia to develop AI infrastructure, involving a $4.3 billion investment. Amazon has also outlined expansion plans, pledging to invest $9 billion in Singapore, $5 billion in Thailand and $6 billion in Malaysia.
The influx of investment from leading tech companies like Google is a clear indicator of Southeast Asia's growing importance as a hub for technological advancement and innovation.
Source: Investing
