Google Announces $2 Billion Investment in Malaysia To Build Data Center and Cloud Hub

In this post:

  • Google announced a $2 billion investment in Malaysia for AI infrastructure development.
  • The investment will be used to develop a data center, cloud hub and AI literacy programs.
  • Malaysia says that the investment will create 26500 jobs and add $3.2 billion to the country’s GDP.

Google pledged to invest $2 billion (RM 9.48 billion) in Malaysia to develop its first data center and cloud facility in the country. Today’s investment announcement is the latest of the series of pledges made by tech giants in Southeast Asia.

Google said that it will develop a data center in Malaysia, which will power its world-leading search tool, Google Maps, and cloud services. The data center will be capable of handling artificial intelligence computing tasks.

Google Will Develop Its First Data Center in Malaysia

Alphabet’s unit Google said that in addition to its essential services mentioned above and workspace, the cloud side will provide services to clients, including different firms and organizations in the private and public sectors.

Also read: Southeast Asia Is Turning Into an AI Hub as Tech Giants Are Rushing to the Region

Along with the artificial intelligence infrastructure, the investment will also cover two AI training programs for Malaysian youth, including students and educators. Ruth Porat, president, CIO, and CFO at Alphabet and Google, said in a statement that,

“This investment builds on our partnership with the Government of Malaysia to advance its ‘Cloud First Policy,’ including best-in-class cybersecurity standards.”

Porat also added,

“With today’s announcement, Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation.” Source.

The data center will be located in Elmina Business Park of Sime Darby Property Bhd, in Greater Kuala Lumpur. Google has been operating its business for the past 13 years in Malaysia which it also calls a home.

Google’s Investment Is the Largest in Malaysia to Date

Porat said that the data center and cloud region is the largest planned investment of Google in Malaysia uptill now. When completed and operational, Malaysia will be among the 11 countries from where Google runs its technical business operations through data centers. The data center will also help reduce latency in services across the country to millions of people and sprawling startups.

Google Announces $2 Billion Investment in Malaysia to Build Data Center and Cloud Hub
Google data center in The Dalles, Oregon. Source: Wikipedia.

Google Cloud will also be connected to Google’s existing interconnect locations in Kuala Lumpur and Cyberjaya. The existing interconnects provide connection access to businesses’s on-premise network and the company’s global network of 40 regions and 121 zones. 

Malaysia’s Minister of Investment, Trade and Industry, Zafrul Tengku Abdul Aziz, said that Google’s $2 billion investment is in line with Malaysia’s New Industrial Master Plan 2030. He said,

“As this attracts further investments, it will spur innovation and drive growth for organizations of all sizes. We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the Madani vision toward a more prosperous, technologically advanced Malaysia.”

Abdul Aziz highlighted that the partnership will further advance Malaysia’s digital ambitions. He said that the Google Cloud region in Kuala Lumpur will support the nation’s service and manufacturing-based industries. Businesses will be able to leverage AI and advanced technologies to move with global trends.

Google’s Investment Will Create Jobs

The investments in digital infrastructure and artificial intelligence literacy programs are expected to add $3.2 billion to Malaysia’s GDP and create 26500 jobs by 2030. According to Malaysian Minister Abdul Aziz, jobs will be created in healthcare, finance, and education. He said that,

“We also welcome Google’s plan to help us develop a robust talent ecosystem by facilitating the growth of our people’s digital skills, businesses, and careers. “

Google’s investment came after Microsoft announced at the start of May that it would invest $2.2 billion in Malaysia. As part of its heavy investments in the Southeast Asian region, Microsoft will also invest in the AI infrastructure and cloud sector.

Also read: Google Core Algorithm Updates and AI Overviews Are Reducing Publishers’ Traffic

Tech giants such as Google, Microsoft, and Amazon have pledged billions of dollars of investments in countries like Thailand, Indonesia, Myanmar, Singapore, and Vietnam. The Southeast Asian region is emerging as a new business ground for AI advancement because of its educated talent pool and growing economy. Western tech giants also consider the region an alternative to China, with whom US relations are tense.

Cryptopolitan reporting by Aamir Sheikh

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