Google is set to invest $2 billion in Malaysia to establish its first data center and Google Cloud region in the country, Alphabet’s (GOOGL.O) unit announced on Thursday. This marks the latest expansion by global tech companies into Southeast Asia.
The Malaysian government stated that this investment will support the nation’s digital goals, with AI capabilities and other advanced technologies boosting local industries’ positions in the global value chain. Southeast Asia, with its young, tech-savvy population of 670 million, has recently attracted significant interest and investment from tech giants like Microsoft (MSFT.O), Amazon (AMZN.O), Nvidia (NVDA.O), and Apple (AAPL.O).
According to Google, the 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 such as Search, Maps, and Workspace, and will also deliver AI services. Meanwhile, the cloud center will provide services to local businesses and public sector organizations.
“Malaysia and Google are collaborating to create a supportive ecosystem for innovation and to unlock the potential of digital transformation,” said Ruth Porat, Google’s Chief Financial Officer, in a statement.
In November, the Malaysian government and Google revealed a partnership aimed at accelerating domestic innovation. Other tech giants have also announced significant investments in the region. Microsoft CEO Satya Nadella recently disclosed cloud services investments of $2.2 billion in Malaysia and $1.7 billion in Indonesia during his visit. In December, Malaysian conglomerate YTL’s utilities unit (YTLP.KL) announced a partnership with Nvidia to develop AI infrastructure with a $4.3 billion investment deal.
