San Francisco, May 30, 2024, The Europe Today: Google announced on Thursday that it will invest $2 billion in Malaysia to establish its first data centre and Google Cloud region in the country. This marks the latest expansion by global tech firms into Southeast Asia, an increasingly attractive market due to its burgeoning tech-savvy population and economic potential.
The Malaysian government welcomed the investment, emphasizing that it aligns with the nation’s digital aspirations. The integration of artificial intelligence (AI) and other advanced technologies will aid local industries in ascending the global value chain. With a youthful population of 670 million, Southeast Asia has been drawing substantial interest and investment from technology giants such as Microsoft, Amazon, Nvidia, and Apple.
According to a statement from Google, the new data centre and cloud region will be situated in Sime Darby Property’s Elmina Business Park in Selangor state. The data centre is set to support a range of services including Search, Maps, and Workspace, and will enhance the delivery of AI services. Concurrently, the cloud region will provide services to 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, in the statement.
This announcement follows a collaboration between the Malaysian government and Google, initiated last November, aimed at accelerating domestic innovation.
Other technology giants are also making significant investments in the region. During a recent visit to Southeast Asia, Microsoft CEO Satya Nadella announced cloud services investments worth $2.2 billion in Malaysia and $1.7 billion in Indonesia. Additionally, in December, Malaysian conglomerate YTL’s utilities unit revealed a partnership with Nvidia to develop AI infrastructure, involving a $4.3 billion investment deal.
These substantial investments highlight the growing importance of Southeast Asia as a hub for technological advancement and digital transformation. Google’s investment in Malaysia is expected to play a pivotal role in enhancing the country’s digital infrastructure and driving economic growth.
