Google to invest $2 billion in Malaysia, build data center to meet AI demand

Porat added that this investment will be the largest ever made by Google in Malaysia in its 13 years of operation.

The data center will power Google’s digital services, such as Search, Maps and Workspace, while the cloud region will provide services to businesses and organizations in the public and private sectors. Google has also launched two AI literacy programs in the country for students and teachers.

These investments and programs are expected to contribute more than $3.2 billion to Malaysia’s GDP and support 26,500 jobs by 2030.

The Malaysia cloud region is the latest addition to Google’s network of 40 regions and 121 zones worldwide, the US tech giant said.

This comes after Microsoft announced earlier this month that it would invest $2.2 billion in Malaysia to advance new cloud and AI infrastructure. It also announced investments in Indonesia and Thailand this year.

Tech giants like Google and Microsoft have pledged billions of dollars to Southeast Asia to capitalize on growing demand for AI and cloud computing services.

The AI ​​boom has driven demand for cloud computing and data center services as large amounts of data are needed to train AI models and the cloud provides access to vast data sets. Data centers are facilities that contain servers and other infrastructure needed to store data and run applications or services.

“Google’s $2 billion investment in Malaysia will significantly advance the digital ambitions outlined in our new Industrial Master Plan 2030,” said Senator YB Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade and Commerce. of Industry, in a press release.

The minister added that Google’s investments will enable manufacturing and service industries to leverage AI and other advanced technologies so they can “climb the ladder of the global chain.”