Google by Alphabet GOOGL GOOG, has declared a $2 billion investment plan to establish its inaugural data center and Google Cloud region in Malaysia.
What Happened: This initiative is the latest in a series of expansions by tech giants into Southeast Asia, home to a young, tech-savvy population of 670 million, Reuters reported on Thursday. The Malaysian government has embraced the investment, which it believes will propel the country’s digital aspirations.
The data and cloud centers will be positioned in the Elmina Business Park, in central Selangor state, owned by Sime Darby Property. The data center will facilitate services such as Search, Maps, and Workspace, while the cloud center will provide services to local businesses and public sector organizations.
According to Google’s CFO Ruth Porat, this partnership between Malaysia and Google aims to “create a supportive ecosystem for innovation and unlock the potential of digital transformation.”
Why It Matters: This move aligns with Malaysia’s recent ambitious $107 billion investment plan to bolster its semiconductor sector, which was announced just two days prior.
Furthermore, Malaysia has been attracting many tech giants lately. Google’s investment follows Microsoft’s MSFT $2.2 billion pledge earlier this month to boost Malaysia’s cloud and AI services, marking the company’s most significant investment in the country in over three decades.
Meanwhile, Apple AAPL is set to open a new store in Kuala Lumpur in June, signaling further growth in Southeast Asia. Other tech giants, such as Amazon AMZN and Nvidia NVDA, have also made substantial investments in the region.
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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