KUALA LUMPUR: The Ministry of Investment, Trade & Industry (Miti) has secured a commitment by Google to invest RM9.4 billion (US$2 billion) to house its first Google data centre and Google Cloud region in Malaysia.
The commitment will support 26,500 jobs across various sectors in Malaysia– including in healthcare, education, and finance – with a total economic impact valued at RM15.04 billion (US$3.2 billion).
The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world to meet the growing demand for cloud services locally and globally, as well as artificial intelligence (AI) literacy programs for Malaysian students and educators.
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said Google's latest investment in Malaysia will significantly advance the digital ambitions outlined in its New Industrial Master Plan 2030 (NIMP 2030). He said the Google data centre and Google Cloud region will empower Malaysia's 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 RM15.04 billion.
"We also welcome Google's plan to help us develop a robust talent ecosystem by facilitating the growth of our people's digital skills, businesses, and careers. As this attracts further investments, it will spur innovation and drive growth for organizations of all sizes," he said.
Meanwhile, Alphabet and Google president and chief investment officer/chief financial officer Ruth Porat said Google's first data centre and Google Cloud region is its largest planned investment so far in Malaysia – a place Google has been proud to call home for 13 years. She said this investment builds on its partnership with the Malaysian government to advance its 'Cloud First Policy,' including best-in-class cybersecurity standards.
"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," Porat added.
According to Miti, the site of this most recent investment in Malaysia will be in Sime Darby Property's Elmina Business Park, in Greater Kuala Lumpur.
It said the Google data centrr 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 centres to serve users around the world.
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 organizations, while maintaining the highest security and regulatory compliance standards.
The investment announcement was made after a series of Miti-facilitated engagements involving Prime Minister Datuk Seri Anwar Ibrahim with Porat.
A memorandum of understanding was also signed between Malaysian Investment Development Authority and Google on Nov 14, 2023.