Google Disburses IDR 32.4 Trillion To Build Data Center And Google Cloud In Malaysia

Google's Chief Financial Officer, Ruth Porat (photo: dock. wall street)

JAKARTA - Google, a unit from Alphabet, announced on Thursday 30 May that it will invest $2 billion in Malaysia to develop its first data center and Google Cloud region in the country. This investment, as part of a wave of expansion by global technology companies into Southeast Asia.

The Malaysian government stated that this investment will boost the country's digital ambitions, and the capabilities of artificial intelligence (AI) and other advanced technologies will help local industries rise in the global value chain. With a young population proficient in technology of 670 million, Southeast Asia has attracted a lot of interest and investment recently from tech giants including Microsoft, Amazon, Nvidia, and Apple.

Google said in a statement that the data center and cloud area would be located at Sime Darby Property's Elmina Business Park in the central state of Selangor.

The data center will support services such as Search, Maps, and Workspace, as well as will help provide artificial intelligence services (AI), while cloud centers will offer services to local companies and public sector organizations.

"Malaysia and Google are partnering to advance our cooperation in creating an ecosystem that supports innovation and opens up the potential for digital transformation," Google's Chief Financial Officer, Ruth Porat, said in the statement.

Last month, the Malaysian government and Google announced a collaboration aimed at accelerating innovation in the country. Other technology companies have also announced large investments in the region.

Microsoft CEO Satya Nadella announced investment in $2.2 billion worth of cloud services in Malaysia and $1.7 billion in Indonesia in a recent visit to the region. In December, Malaysia's conglomerate utility unit, YTL, announced it would partner with Nvidia to develop artificial intelligence infrastructure in an investment deal worth 4.3 billion.

Apart from Amazon, Amazon has also announced plans to invest $9 billion in Singapore, USD 5 billion in Thailand, and USD 6 billion in Malaysia. It is not yet known whether Indonesia will get a similar investment from Amazon.