Google announced a $2 billion investment commitment in Malaysia on May 30. The funds will be used to build the country's first data center and Google Cloud region. This is the largest investment Google has made in Malaysia in its 13 years in the country.
The construction of the data center and cloud services aims to meet the growing demand for AI and cloud services in Malaysia. Google's data center in Malaysia will support digital services such as search, maps and workspace. Meanwhile, the cloud region will provide services to businesses and organizations in both the public and private sectors.
These facilities will be built in a business park in Selangor, central Malaysia. In addition, Google is launching two AI literacy programs for students and educators in Malaysia. With this investment, Malaysia becomes the 12th country to host a Google data center, joining 40 regions and 121 zones currently in operation worldwide.
Previously, Microsoft also announced its $2.2 billion investment in Malaysia to build cloud and AI infrastructure, alongside investments in Indonesia and Thailand.
Accompanied by a surge in demand for AI and cloud computing services in Southeast Asia, tech giants such as Google and Microsoft are pouring billions of dollars into the region. The increased use of AI has driven the need for robust data centers and cloud computing services, as AI models require large data sets for training, and cloud computing provides easy access to these data sets.
The Malaysian government welcomed Google's investment, believing that it will advance the country's digital ambitions. The presence of this advanced infrastructure is expected to help local industries improve their AI capabilities and other cutting-edge technologies, enabling them to compete globally.
Prime Minister Anwar Ibrahim noted that Google's investment is a vote of confidence in Malaysia's governance and economy. It is estimated that this investment will contribute $3.2 billion to the economy and create 26,500 new jobs by 2030.
