Google, a unit of Alphabet Inc., has announced its plan to invest $2 billion in Malaysia to develop its first data centre and Google Cloud region in the country.
This move is part of a broader trend of global tech firms expanding into Southeast Asia.
In a statement released on Thursday, Google revealed that the new data centre and cloud region will be situated in Sime Darby Property's Elmina Business Park in Selangor.
The data centre will support services like Search, Maps, and Workspace, and will facilitate AI service delivery. The cloud centre is intended to provide services to local businesses and public sector organizations.
The Malaysian government stated that this investment aligns with its digital ambitions and will leverage artificial intelligence (AI) capabilities and other advanced technologies to enhance local industries' positions in the global value chain.
Southeast Asia, with its youthful, tech-savvy population of 670 million, has recently been attracting substantial interest and investment from technology giants such as Microsoft, Amazon, Nvidia, and Apple.
"Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation," said Google's Chief Financial Officer, Ruth Porat, in the statement.
In November, the Malaysian government and Google announced a collaboration to accelerate domestic innovation.
Other tech giants have also made significant investment announcements in the region.
Microsoft CEO Satya Nadella recently declared cloud services investments of $2.2 billion in Malaysia and $1.7 billion in Indonesia. Additionally, Malaysian conglomerate YTL's utilities unit announced a $4.3 billion partnership with Nvidia to develop AI infrastructure.
Amazon has outlined plans to invest $9 billion in Singapore, $5 billion in Thailand, and $6 billion in Malaysia, further emphasizing the growing interest of global tech firms in Southeast Asia.