Google to invest $2 bn in data center and cloud services in Malaysia 

Google has announced that it will invest $2 billion in building and developing its first data center and cloud region in Malaysia.  

The cloud giant has already selected a site for developing data centers described as ” state-of-the-art” and to prioritize sustainability and utilize clean energy. With a young tech-savvy population of 670 million, Southeast Asia has been attracting plenty of interest and investment recently from technology giants, including Amazon, Nvidia, Microsoft, and Apple.   

Google said in a statement that the data center and cloud region will be located in Sime Darby Property’s Elmina Business Park in Central Selangor State. This data center will power services, including search, Maps, and Workspace, and will help deliver AI services, while the cloud center will provide services to local firms and public sector organizations.

Also, “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.  

Also, as per Google’s announcement, the development will bring around 26,500 jobs to the area by 2030. In addition, Google and the Malaysian Government strategically collaborated in November 2023 to create growth opportunities in the country by utilizing AI and cloud technologies. This latest investment is hoped to support more than $3.2bn in contribution to Malaysia’s GDP. 

Also, earlier this month, reports emerged that an “unnamed tech company” was leasing a 49-acre site for 20 years in the Elmina Business Park. Also, the project is set to break ground in Q2 2024 for a 2026 completion. 

Sime Darby will manage the development, design, infrastructure planning, and construction management. Also, the company associated with this development is “Pearl Computing,” which is stated as a wholly-owned subsidiary of an unnamed multinational technology company. Also, the report in Edge Malaysia stated that Pearl is a Wholly-owned unit of Singapore-based Raiden APAC Pte Ltd, Which is part of a tech company headquartered in the US, likely Google.   

In 2022, Google first announced plans for a cloud region. In 2023, AWS announced that it was planning a cloud region in the country along with $6bn in investment by 2037.   

In addition, Microsoft first shared its intention to develop a cloud region in Kuala Lumpur in 2021, but it has yet to launch; it acquired land in Johor earlier this year. The company recently committed to investing $2.2 billion in cloud computing and artificial intelligence (AI) services in Malaysia over the next four years.