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Google plans a $2 billion investment in a data center and cloud services in Malaysia.
Google plans a $2 billion investment in a data center and cloud services in Malaysia.

Tech

Google plans a $2 billion investment in a data center and cloud services in Malaysia.

KUALA LUMPUR, May 30 (Reuters) – Google has announced a $2 billion investment in Malaysia to establish its first data center and Google Cloud region in the country. This initiative, disclosed on Thursday by Alphabet’s (GOOGL.O) subsidiary, marks the latest move by global tech giants expanding into Southeast Asia. [irp]

The Malaysian government emphasized that this investment aligns with the country’s digital aspirations and that the AI capabilities and advanced technologies involved will help elevate local industries in the global value chain. Southeast Asia, with its youthful and tech-savvy population of 670 million, has recently been a hotbed of interest and investment from major technology companies, including Microsoft (MSFT.O), Amazon (AMZN.O), Nvidia (NVDA.O), and Apple (AAPL.O).

Google’s statement revealed that the new data center and cloud region will be situated in Sime Darby Property’s (SIPR.KL) Elmina Business Park in central Selangor state. The data center will support services like Search, Maps, and Workspace, as well as deliver AI services. Meanwhile, the cloud center will provide services to local businesses and public sector entities.

“Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation,” stated Google’s Chief Financial Officer, Ruth Porat.

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In November, the Malaysian government and Google had already announced a collaboration aimed at boosting domestic innovation.

Other tech giants have also been making significant investments in the region. During a recent visit, Microsoft CEO Satya Nadella unveiled cloud services investments amounting to $2.2 billion in Malaysia and $1.7 billion in Indonesia. In December, Malaysian conglomerate YTL’s utilities unit (YTLP.KL) revealed a $4.3 billion partnership with Nvidia to develop AI infrastructure.

Additionally, Amazon has declared plans to invest $9 billion in Singapore, $5 billion in Thailand, and $6 billion in Malaysia.

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