Google to invest RM9.4 billion for first data centre, cloud region in M’sia

The investment, trade and industry ministry (Miti) has announced that Google will invest RM9.4 billion to establish its first data centre and Google Cloud region in Malaysia.

The ministry said the investment would support 26,500 jobs across various sectors, including healthcare, education, and finance, with a total economic impact valued at RM15.04 billion.

“The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world to meet the growing demand for cloud services locally and globally, as well as artificial intelligence (AI) literacy programmes for Malaysian students and educators,” it said in a statement.

The investment follows Miti-facilitated discussions between Prime Minister Anwar Ibrahim and Alphabet Inc chief financial officer Ruth Porat, and a memorandum of understanding signed with the Malaysian Investment Development Authority on Nov 14 last year.

Tengku Zafrul Aziz, who heads Miti, said the investment supports Malaysia’s digital advancement under the New Industrial Master Plan 2030.

“We also welcome Google’s plan to help us develop a robust talent ecosystem by facilitating the growth of our people’s digital skills, businesses, and careers,” he said.

“We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the Madani vision towards a more prosperous, technologically advanced Malaysia.”

Meanwhile, Porat said Google’s first data centre and Google Cloud region in Malaysia marked its largest planned investment in the country, where it has been present for 13 years.

“This investment builds on our partnership with the Malaysian government to advance its Cloud First Policy, including best-in-class cybersecurity standards,” she said.

“With today’s announcement, Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation.”

Google’s data centre will be located in Sime Darby Property’s Elmina Business Park and will support various Google services. However, its operational timeline remains unknown.

Once it is operational, Malaysia will join 11 countries where Google has built and currently operates data centres to serve users globally.

US tech giants are investing more in Southeast Asia, pouring billions of dollars into the region for growth.

Last month, Microsoft Corp’s CEO Satya Nadella announced the company’s plan to invest RM10.5 billion in cloud and AI infrastructure in Malaysia over the next four years.

This news was first published on FMT

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