Google will invest $2 billion in Malaysia to build its first data center and Google Cloud region in the country, as announced by Alphabet’s unit on Thursday.
This move follows a trend of global tech companies expanding into Southeast Asia, which boasts a young, tech-savvy population of 670 million.
The Malaysian government sees this investment as a boost to the country’s digital ambitions, enhancing local industries with advanced technologies like artificial intelligence (AI).
The data center and cloud region will be situated in Elmina Business Park, central Selangor, developed by Sime Darby Property.
Google’s data center will support services such as Search, Maps, and Workspace, and will deliver AI services.
The cloud center will serve local businesses and public sector organizations.
Google’s CFO Ruth Porat emphasized the partnership with Malaysia to foster innovation and digital transformation.
Other tech giants have also announced significant investments in the region recently. Microsoft committed $2.2 billion for cloud services in Malaysia and $1.7 billion in Indonesia.
In December, Malaysian conglomerate YTL partnered with Nvidia on a $4.3 billion AI infrastructure project.
Amazon has planned investments of $9 billion in Singapore, $5 billion in Thailand, and $6 billion in Malaysia.
