Google has announced plans to invest RM9.4 billion in Malaysia to establish its inaugural data centre and Google Cloud region in the country. The Ministry of Investment, Trade and Industry (MITI) revealed that this substantial investment is projected to generate 26,500 employment opportunities across various sectors, encompassing healthcare, education, and finance, with an estimated total economic impact of RM15.04 billion.
According to a statement by MITI, the Malaysian cloud region will become part of Google’s extensive network, which currently spans 40 regions and 121 zones worldwide, addressing the escalating demand for cloud services both locally and internationally. Additionally, Google intends to implement artificial intelligence (AI) literacy initiatives for Malaysian students and educators.
This investment materialized following deliberations facilitated by MITI between Prime Minister Anwar Ibrahim and Alphabet’s Ruth Porat, culminating in a memorandum of understanding inked with the Malaysian Investment Development Authority on November 14 last year.
Tengku Zafrul Aziz, overseeing MITI, underscored the significance of Google’s investment, stating, “The investment aligns with Malaysia’s digital progression under the New Industrial Master Plan 2030.” He also lauded Google’s commitment to enhancing the nation’s talent ecosystem by fostering the development of digital skills, businesses, and careers.
“We are confident that Google’s collaboration and sustained investment will expedite our nation’s digital transformation, thereby contributing to the Madani vision of a more prosperous, technologically advanced Malaysia,” added Aziz.
Ruth Porat, President and Chief Investment Officer of Alphabet Inc. and Google, emphasized the magnitude of this investment, stating, “Google’s inaugural data centre and Google Cloud region in Malaysia represent our largest planned investment in the country to date.” Porat highlighted the collaboration with the Malaysian government to advance its ‘Cloud First Policy’, integrating top-tier cybersecurity standards, with the goal of cultivating a supportive environment for innovation and unlocking the full potential of digital transformation.
Situated in Sime Darby Property’s Elmina Business Park in Greater Kuala Lumpur, the new data centre will support Google’s array of digital services, including Search, Maps, and Workspace. Additionally, it will facilitate the delivery of AI benefits to users and customers across Malaysia, once operational, making Malaysia one of the 11 countries worldwide where Google operates data centres.
Google’s Cloud region in Malaysia is poised to offer high-performance, low-latency services to a diverse clientele, comprising large enterprises, startups, and public sector organizations. The integration of this new Cloud region with Google Cloud’s existing Dedicated Cloud Interconnect locations in Cyberjaya and Kuala Lumpur will ensure seamless and secure connectivity.
This substantial investment is forecasted to contribute over RM20.8 billion to Malaysia’s GDP and generate 26,500 jobs by 2030, as per an evaluation commissioned by Google from AlphaBeta. This initiative aligns with the Malaysian government’s strategic partnership with Google to foster inclusive growth and technological advancement.
Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Dato’ Sri Fadillah Yusof, emphasized the synergy between Google’s investment and Malaysia’s energy transition objectives. “This data centre prioritises efficiency, sustainability, and the utilisation of clean energy, setting a new benchmark for responsible digital infrastructure development.”
Minister of Digital, YB Gobind Singh Deo, hailed Google’s strategic investment, highlighting its potential to position Malaysia as a regional hub for secure data flows, cloud computing, and AI innovation. “This investment complements our initiatives to strengthen Malaysia’s digital economy and society, empowering every Malaysian to thrive in the digital era.”
He also emphasized the transformative impact of Google’s investment on Malaysia’s digital and reiterated the government’s commitment to creating an enabling environment for technological innovation and entrepreneurship, fostering a vibrant ecosystem where businesses can thrive and individuals can access opportunities for growth and development.
The partnership between Google and Malaysia holds promise for advancing research and development initiatives in emerging technologies such as artificial intelligence, machine learning, and data analytics. By leveraging Google’s expertise and resources, Malaysia aims to strengthen its position as a leader in digital innovation and technology-driven economic 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.
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