In the latest move in a string of international tech companies’ expansion into Southeast Asia, Google (GOOGL.O) announced on Thursday that it will invest $2 billion in Malaysia to build its first data center and Google Cloud region in the nation.
The government said that the investment would help Malaysia achieve its digital goals and that the latest technology, including artificial intelligence (AI), will assist in propelling local business up the global value chain. Southeast Asia, home to 670 million youthful, internet-savvy people, has recently drawn significant interest and investment from major tech companies such as Microsoft (MSFT.O), Amazon (AMZN.O), Nvidia (NVDA.O), and Apple (AAPL.O).
Google stated in a statement that the Elmina Business Park in central Selangor state, owned by Sime Darby Property (SIPR.KL), will house the data center and cloud region.
According to the statement, the cloud center will provide services to regional businesses and public sector organizations, while the data center will power applications like Workspace, Maps, and Search and assist in delivering AI capabilities.
Ruth Porat, Google’s Chief Financial Officer, stated in the release, “Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation.”
Google and the government formed a partnership in November of last year with the goal of boosting innovation in the country.
Large investments in the region have also been announced by other tech firms. During a recent tour to the area, Microsoft CEO Satya Nadella announced investments in cloud services worth $1.7 billion in Indonesia and $2.2 billion in Malaysia.
The utilities division of Malaysian conglomerate YTL (YTLP.KL) declared in December that it would collaborate with Nvidia to create AI infrastructure as part of a $4.3 billion investment agreement.