Google commits RM9.4bil for Google data centre and cloud region in Malaysia

Thursday, 30 May 2024

KUALA LUMPUR: Google will invest RM9.4bil (US$2bil) to house its first Google data centre and Google Cloud region in Malaysia, which is expected to support 26,500 jobs across various sectors and have an economic impact of about RM15.04bil, said the Ministry of Investment, Trade and Industry (Miti).

The project, the technology giant’s largest planned investment in Malaysia, will be located in Sime Darby Property‘s Elmina Business Park in Greater Kuala Lumpur.

According to Miti, the Google date centre will power Google’s popular digital services, such as Search, Maps, and Workspace, while also playing an essential role in enabling Google to deliver the benefits of Al to users across the country.

“When operational, Malaysia will join the 11 countries where Google has built and currently operates data centers to serve users around the world,” it said.

The Google Cloud region, on the other hand, will deliver high-performance and low-latency cloud infrastructure, analytics, and AI services to large enterprises, startups, and public sector organisations, while maintaining the highest security and regulatory compliance standards.

Investment, Trade and Industry Minister Tengku Zafrul Aziz said Google’s investment will significantly advance the digital ambitions outlined in the New Industrial Master Plan 2030 (NIMP 2030).

“The Google data center and Google Cloud region in Greater Kuala Lumpur will empower our manufacturing and service-based industries to leverage AI and other advanced technologies to move up the global value chain, with an estimated economic impact valued at RM15.04bil,” he said in a statement.

He added that the plan to develop a robust talent ecosystem will facilitate the growth of the digital skills, businesses and careers of Malaysians.

By attracting further investments, it will also spur innovation and drive growth for organisations of all sizes, he said.

According to Miti, Google’s commitment represents a key milestone in the Madani government’s vision to attract more digital investors to the country to help build a strong and safe digitally enabled economy.

“The increased capacity of and reliability on cloud services will support various sectors – including healthcare, education, and finance – to foster a more connected and resilient world,” it said.

The announcement comes after a series of Miti-facilitated engagements involving Prime Minister Datuk Seri Anwar Ibrahim and Ruth Porat, the president and chief investment officer and chief financial officer of Alphabet and Google.

Said Porat: “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.”

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