On Thursday, Alphabet said that it would invest $2 billion in Malaysia to build its first data center and Google Cloud region, the latest tech company expansion into Southeast Asia
According to the government, the investment would facilitate the progress of Malaysia’s digital aspirations. At the same time, using advanced technologies such as artificial intelligence (AI) would aid domestic industry in ascending the global value chain.
Recently, technology titans such as Amazon (AMZN.O), Microsoft (MSFT.O), Nvidia (NVDA.O), and Apple (AAPL.O) have shown considerable interest and investment in Southeast Asia, which is home to a youthful population of 670 million individuals who are well-versed in technology.
Google stated that the data center and cloud region will be in Elmina Business Park, central Selangor State, owned by Sime Darby Property (SIPR.KL).
It was stated that the data center would enable services such as Workspace, Search, and Maps and assist in delivering AI services.
In contrast, the cloud center would provide services to local businesses and public sector organizations.
“Google and Malaysia are collaborating to foster an environment conducive to innovation and to realize the full potential of digital transformation,” a statement from Google’s chief financial officer, Ruth Porat, explained.
The government and Google announced a partnership in November of last year to foster innovation at the domestic level.
Additional technology behemoths have declared substantial investments in the area as well.
During a recent visit to the region, Satya Nadella, the CEO of Microsoft, unveiled investments in cloud services amounting to $1.7 billion in Indonesia and $2.2 billion in Malaysia.
The utilities division of Malaysian conglomerate YTL, which opens a new tab, disclosed in December that it would invest $4.3 billion in Nvidia to develop AI infrastructure in partnership.
Amazon intends to allocate $6 billion in Malaysia, $5 billion in Thailand, and $9 billion in Singapore.