Google announces US$2 billion investment in Malaysia, while government hails 26,500 jobs | Technology

The technology giant claims that investment in the Southeast Asian country “will pave the way for delivering the transformative power of AI.”

Google has announced that it will invest US$2 billion in Malaysia to establish its first data center and “cloud region” in the Southeast Asian country.

“This investment is not just about infrastructure; it’s about unlocking new possibilities for businesses, educators and all Malaysians,” said Farhan S Qureshi, country director of Google Malaysia, in a blog post on Thursday.

Qureshi said the Google data center would power services like Google Search and Google Maps and “pave the way to delivering the transformative power of AI to users and customers across the country.”

The Google Cloud region will offer “high-performance, low-latency cloud services to enterprises, startups, and public sector organizations, along with key controls that will enable them to maintain the highest standards of security and compliance, including specific data storage requirements ,” said Qureshi. .

Malaysian Prime Minister Anwar Ibrahim said the investment would add $3.2 billion to the country’s economy and create 26,500 jobs by 2030.

“The investment related to Google’s first data center in Malaysia and the development of the Google Cloud region is proof that the government’s clear planning, in addition to the country’s economic strength and resources, are attractive to new and existing investors,” said Anwar in an X post.

“Without a doubt, this places Malaysia as one of the leading countries in the use and support of digital technology-based services.”

Google’s announcement comes several weeks after rival Microsoft announced it would invest US$2.2 billion in artificial intelligence and cloud computing in Malaysia.

US tech giants have been increasing investment in Southeast Asia, home to a young, computer-savvy population of 670 million people and one of the fastest-growing regional economies.

Global consulting firm Kearney has estimated that AI could contribute nearly $1 trillion to Southeast Asia’s gross domestic product by 2030.

Amazon announced earlier this month that it would invest US$9 billion in Singapore to expand cloud infrastructure in the city-state, following previous announcements of multibillion-dollar investments in Malaysia and Thailand.