Why Is Malaysia The Preferred Destination For Data Centres?

The tech giant plans to invest USD2 billion (~RM9.42 billion).
(credit: Google)

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Google has committed to investing USD2 billion (~RM9.42 billion) in Malaysia, which includes establishing its first data centre and initiating Google Cloud efforts in the region.

This pledge represents Google’s largest planned investment in the Southeast Asian nation, according to Alphabet Inc. Chief Financial Officer Ruth Porat, as per reported by Bloomberg.

In addition to developing cloud computing services, Google stated it would also support artificial intelligence (AI) literacy programs for students and educators.

In recent months, US tech giants have increased their investments in Southeast Asia, committing billions of dollars as they seek new growth opportunities. CEOs of Microsoft, Apple, and Nvidia have travelled through the region to develop strategic plans and meet with heads of state.

Microsoft’s Chief Executive Officer Satya Nadella announced this month that the company would invest around RM10.46 billion in Malaysia in cloud and AI infrastructure, alongside similar pledges for Indonesia and Thailand.

Microsoft and Google are in fierce competition for leadership in AI services, aiming to attract customers to their offerings in this rapidly growing field.

Where will Google set up their data centre?

The Google data centre will be establish in Sime Darby Properties’ Elmina Business Park, in Sungai Buloh, Selangor.

(credit: Google)

Why Malaysia is the preferred destination for data centres? The country is located in a strategic location, political stability, and growing digital economy.

Malaysia also has a well-established telecommunications infrastructure with several undersea cables that provide high-speed internet connectivity to other countries in the region.

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