Google Pledges $2B Investment To Build Data Center in Malaysia

Google has committed to investing $2 billion in Malaysia, including the construction of its first data center, a new Google Cloud region, and further development of artificial intelligence.

This marks Google’s largest planned investment in the Southeast Asian nation, as announced by Ruth Porat, chief financial officer of Google’s parent company, in a statement on Thursday.

The move comes as US tech giants ramp up their investments in ASEAN countries, aiming to capitalize on new growth opportunities.

Microsoft, Apple, and Nvidia are some of the leading tech companies that have recently announced their plans to significantly invest in the region.

The CEOs of these companies have traveled to ASEAN countries to outline their strategic plans and meet with leaders of these nations.

Microsoft’s Chairman and CEO, Satya Nadella, announced this month a US$2.2 billion investment in Malaysia, in addition to similar commitments for Indonesia and Thailand.

The competition between Microsoft and Google in the artificial intelligence (AI) services sector is heating up, with both companies vying for customers in this rapidly growing field.

In addition to developing cloud computing services, Google has pledged to support AI literacy programs for students and educators throughout Malaysia. These efforts highlight the company’s commitment to fostering technological innovation and education in the region.

Earlier this month, Satya Nadella revealed Microsoft’s plan to establish a data center in Thailand, aiming to capitalize on the burgeoning AI-driven transformation in Southeast Asia.

He shared the news at the “Microsoft Build: AI Day in Bangkok” event on May 1, which was attended by the Thai Prime Minister Srettha Thavisin, as well as about 2,000 developers, business, and technology leaders.

A source familiar with Microsoft revealed that the planned data center in Thailand would be situated in the Eastern Economic Corridor (EEC), with an investment estimated at $1 billion. This center will join the ranks of around 300 Microsoft data centers globally.