KUALA LUMPUR (May 30) – The Ministry of Investment, Trade and Industry (Miti) has announced that Google has committed to a US$2 billion (RM9.4 billion) investment to establish the first Google data centre and Google Cloud region in Malaysia. This significant development will be located at Sime Darby Property Bhd’s Elmina Business Park in Greater Kuala Lumpur.
The new data centre will support Google’s widely-used digital services, such as Search, Maps, and Workspace, while also enabling Google to deliver artificial intelligence (AI) benefits to users across Malaysia. In a statement released on Thursday, Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz emphasized the importance of this investment for the country’s digital infrastructure.
“When operational, Malaysia will join the 11 countries where Google has built and currently operates data centres to serve users around the world,” said Tengku Zafrul. “The Google Cloud region, on the other hand, will deliver high-performance and low-latency cloud infrastructure, analytics, and AI services to large enterprises, start-ups, and public-sector organisations, while maintaining the highest security and regulatory compliance standards.”
Miti highlighted that Google’s initiative is expected to support 26,500 jobs across various sectors in Malaysia, including healthcare, education, and finance. The total economic impact of this investment is valued at RM15.04 billion.
- Job Creation: 26,500 jobs across healthcare, education, and finance
- Economic Impact: RM15.04 billion
- Location: Elmina Business Park, Greater Kuala Lumpur
This initiative will further strengthen Malaysia’s position in the global cloud services market. The Malaysian cloud region will join 40 regions and 121 zones currently in operation around the world, meeting the growing demand for cloud services both locally and globally.
The announcement follows a series of engagements facilitated by Miti, including discussions between Prime Minister Datuk Seri Anwar Ibrahim and Alphabet and Google President, Chief Investment Officer, and Chief Financial Officer Ruth Porat. Alphabet is Google’s parent company.
A memorandum of understanding (MoU) was previously signed between the Malaysian Investment Development Authority (Mida) and Google in November last year. This MoU laid the groundwork for the current investment and collaboration.
| Country | Number of Data Centres |
|---|---|
| United States | Multiple |
| Singapore | 1 |
| Belgium | 1 |
| Ireland | 1 |
| Netherlands | 1 |
| Finland | 1 |
| Taiwan | 1 |
| Chile | 1 |
| Denmark | 1 |
| Hong Kong | 1 |
| Malaysia | 1 (Upcoming) |
Tengku Zafrul stated that the RM9.4 billion investment will significantly advance the digital ambitions outlined in Malaysia’s New Industrial Master Plan 2030. “The Google data centre 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,” he said.
Ruth Porat expressed her enthusiasm for the project, noting that it represents Google’s largest planned investment in Malaysia to date. “This investment builds on our partnership with the Malaysian government to advance its ‘cloud first policy’, including best-in-class cybersecurity standards,” 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.”
The market responded positively to the announcement, with shares in Sime Darby Property gaining four sen or 3.33% to RM1.24, giving the company a market capitalization of RM8.43 billion. This reflects investor confidence in the potential benefits that the new data centre and cloud region will bring to the Malaysian economy.
The establishment of the Google Cloud region is not only a commercial venture but also a significant step towards enhancing AI literacy and innovation in Malaysia. The project includes plans for AI literacy programs aimed at students and educators, ensuring that the next generation is equipped with the necessary skills to thrive in a digital economy.
- Infrastructure Development: Establishment of advanced data centres and cloud regions.
- Job Creation: Support for 26,500 jobs across various sectors.
- Economic Impact: Contribution of RM15.04 billion to the economy.
- AI and Cloud Services: High-performance and low-latency cloud infrastructure for enterprises and public-sector organisations.
- Educational Initiatives: AI literacy programs for students and educators.
A crucial aspect of the new data centre and cloud region is the focus on cybersecurity and regulatory compliance. Google’s investment will bring best-in-class cybersecurity standards to Malaysia, ensuring that data and digital services are secure and reliable. This aligns with the Malaysian government’s ‘cloud first policy’, which prioritizes cloud-based solutions for public sector and enterprise use.
The commitment by Google to invest US$2 billion in Malaysia marks a significant milestone in the country’s digital transformation journey. The new data centre and cloud region will not only enhance the technological capabilities of Malaysian industries but also create substantial economic and job opportunities. With strong government support and a focus on innovation and education, this investment will help propel Malaysia to the forefront of the global digital economy.
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Featured Image courtesy of KLSE Screener