Google announced today that it will invest $2 billion in Malaysia, with a portion of the money going towards constructing the nation’s first data centre and cloud region in response to the growing demand for artificial intelligence and cloud services.
TakeAway Points:
- Google said that it will establish its first data centre and cloud region in Malaysia with a $2 billion investment.
- According to the report, because AI models need large amounts of data to be trained, and because the cloud gives users access to enormous datasets, the AI boom has increased demand for cloud computing services and data centres.
- In a statement, Alphabet and Google’s president, CFO, and CIO, Ruth Porat, stated that this will be Google’s largest investment in Malaysia in the company’s 13 years of existence.
Google’s Data Centre and Cloud Region in Malaysia
Google on Thursday said it will invest $2 billion in Malaysia, with part of the funds going towards building its first data center and cloud region in the country, as the demand for AI and cloud services rises.
“This investment builds on our partnership with the Government of Malaysia to advance its ‘Cloud First Policy,’ including best-in-class cybersecurity standards,” Ruth Porat, president, CFO, and CIO at Alphabet and Google, said in a statement.
According to Porat, this will be Google’s biggest investment in Malaysia in the company’s 13 years of existence.
The cloud region will offer services to businesses and organisations in the public and private sectors, while the data centre will power Google’s digital services, including Workspace, Maps, and Search. Additionally, Google introduced two AI literacy initiatives for educators and students throughout the nation.
Google stated that by 2030, these initiatives and investments are anticipated to support 26,500 jobs and add more than $3.2 billion to Malaysia’s GDP.
According to the American tech giant, Google has expanded its global network of 40 regions and 121 zones to include the Malaysia cloud area.
Microsoft’s Artificial Intelligence and Cloud Infrastructure in Malaysia
This follows Microsoft’s announcement earlier this month that it will invest $2.2 billion in Malaysia to develop new artificial intelligence and cloud infrastructure. This year, it also disclosed investments in Thailand and Indonesia.
To take advantage of the growing demand for AI and cloud computing services in Southeast Asia, tech behemoths like Google and Microsoft have committed billions of dollars to the region.
Because AI models need large amounts of data to be trained and because the cloud gives users access to enormous datasets, the AI boom has increased demand for cloud computing services and data centres. Servers and other infrastructure required to store data and run programmes or services are housed in data centres.
“Google’s $2 billion investment in Malaysia will significantly advance the digital ambitions outlined in our New Industrial Master Plan 2030,” YB Senator Tengku Datuk Seri Utama Zafrul Aziz, minister of investment, trade and industry, said in a press release.
In order to “move up the global chain,” the minister continued, Google’s investments will make it possible for the manufacturing and service-based sectors to take advantage of AI and other cutting-edge technology.
