Google will invest $2 billion in Malaysia to develop its first data center and Google Cloud region in the country, Alphabet’s unit said on Thursday, the latest in a wave of expansion by global technology companies into Southeast Asia.
The government said the investment would advance Malaysia’s digital ambitions, and its capabilities for artificial intelligence (AI) and other advanced technologies would help the local industry move up the global value chain.
With a young, tech-savvy population of 670 million people, Southeast Asia has recently attracted a lot of interest and investment from tech giants like Microsoft, Amazon, Nvidia and Apple.
Google said in a statement that the data center and cloud region will be located at Sime Darby Property’s Elmina Business Park in the central state of Selangor.
The data center will power services such as Search, Maps and Workspace and help deliver AI services, while the cloud center will offer services to local businesses and public sector organizations, the report said.
“Malaysia and Google are working together to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation,” Google’s Chief Financial Officer Ruth Porat said in the statement.
Last November, the government and Google announced a partnership to accelerate innovation in their own country.
Other tech giants have also announced major investments in the region. Microsoft CEO Satya Nadella announced investments in cloud services worth $2.2 billion in Malaysia and $1.7 billion in Indonesia during a recent visit to the region.
In December, the utilities division of Malaysian conglomerate YTL announced it would partner with Nvidia to develop AI infrastructure in a $4.3 billion investment deal.
Amazon has announced plans to invest $9 billion in Singapore, $5 billion in Thailand and $6 billion in Malaysia.
