Kuala Lumpur: Google will invest $2 billion (RM9.4 billion) in Malaysia. It will develop its first data centre in the country and will work on the Google Cloud project in the region.
The goal is to meet the growing demand for cloud services locally and globally. Additionally, the tech giant aims to provide artificial intelligence (AI) literacy to students and educators in the country.
Google’s Largest Planned Investment So Far In Malaysia
Ruth Porat, president and chief investment officer at Alphabet Inc and Google’s chief financial officer, said this was the group’s largest planned investment to date in Malaysia, a place Google has been proud to call home for 13 years. Alphabet is Google’s holding company.
“This investment builds on our partnership with the Malaysian government to advance its ‘Cloud First Policy’, including best-in-class cybersecurity standards,” she said in a statement.
“With today’s announcement, Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation,” she added.
Google said its investment is expected to generate more than $3.2 billion (RM15.04 billion) in positive economic impact and 26,500 jobs by 2030.
What Will Google’s Data Centre Do?
The data centre will support the company’s popular digital services such as Search, Maps and Workspace, which are used every day by billions of people and organizations around the world, including in Malaysia.
“It (the data centre) will also play an essential role in enabling Google to deliver the benefits of Al to users and customers across the country.
“When operational, Malaysia will join the 11 countries where Google has built and now operates data centres serving users around the world,” it said.
Google Cloud’s Benefits
Regarding Google Cloud, the company said it will provide high-performance, low-latency services to big enterprises, startups, and public sector organizations.
Google Cloud customers would benefit from key controls that enable them to maintain the highest standards of data security, retention, and compliance, including specific data storage requirements.
“The cloud region will be complemented by Google Cloud’s existing Dedicated Cloud Interconnect locations in Cyberjaya and Kuala Lumpur, which provide direct connections between an organisation’s on-premises network and Google Cloud’s global network.
“The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world,” it said.
Malaysia’s Digital Ambitions
Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz commented on the announcement, saying Google’s US$2 billion investment significantly advances the digital ambitions outlined in Malaysia’s New Industrial Master Plan 2030 (Nimp 2030).
He said the data center and Google Cloud will enable the country’s manufacturing and service sectors to leverage AI and other advanced technologies to boost the global value chain.
“We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the Madani vision toward a more prosperous, technologically advanced Malaysia,” he said.
The government and Google entered into a strategic collaboration in November 2023, which aimed at creating inclusive growth opportunities for more Malaysians and local businesses through the use of artificial intelligence and cloud technologies.
