Google’s announcement of a $2 billion investment in Malaysia to develop its first data and cloud centers in the country has sparked excitement and optimism for economic growth. The investment is expected to create around 26,500 jobs by the year 2030. This move by Google is part of a larger trend of U.S. tech giants expanding their digital infrastructure in Southeast Asia, with Amazon and Microsoft also making significant investments in the region.
The data center and cloud region will be located in Sime Darby Property’s Elmina Business Park near Kuala Lumpur, joining other major U.S. tech companies in establishing a presence in Malaysia. The data center will be responsible for powering various digital services such as Search, Maps, and Workspace, while the cloud region will cater to large companies, startups, and public sector organizations in maintaining security, data residency, and compliance standards.
Google’s investment in Malaysia aligns with the country’s digital ambitions outlined in the New Industrial Master Plan 2030. The government of Malaysia has welcomed Google’s decision, seeing it as a significant step towards advancing the country’s ‘Cloud First Policy’ and cybersecurity standards. Additionally, Google’s commitment to developing a talent ecosystem by enhancing digital skills, businesses, and careers of the Malaysian people has been highly praised.
In an effort to promote AI literacy and make digital skills more accessible to Malaysians, Google announced two programs aimed at students and teachers. The Gemini Academy program will assist teachers in utilizing generative AI tools, while the Experience AI program will focus on educating students aged 11 to 14 about artificial intelligence. This initiative is part of Google’s collaboration with the Malaysian government, established last November to create growth opportunities for locals and companies through the use of AI and cloud technologies.
Not only is Google making a significant investment in Malaysia, but local tycoons are also actively involved in developing data centers in the country. Engineering and construction company Gamuda, led by Lin Yun Ling, has secured contracts to build a data center at Elmina Business Park. Sime Darby Property and its partner Pearl Computing are collaborating on a data center project within the business park, while YTL Power, in partnership with Nvidia, is working on an AI-powered data center in Johor, Malaysia.
Overall, Google’s investment in Malaysia marks a major milestone in the country’s digital transformation journey. The development of data and cloud centers, coupled with initiatives to enhance AI literacy and digital skills, will not only drive economic growth but also position Malaysia as a key player in the tech industry. With the support of global tech giants and local tycoons, Malaysia is poised to thrive in the digital era and seize opportunities for innovation and advancement.
