Google to invest US$2 billion in Malaysia's digital future

Google has announced a significant investment in Malaysia, committing US$2 billion to drive the nation's digital transformation. This initiative includes the establishment of Google's first data centre in Malaysia and a new Google Cloud region. This ambitious plan aims to cater to the increasing demand for cloud services and to support AI literacy programmes for students and educators.

The new data centre will be located in Sime Darby Property's Elmina Business Park in Greater Kuala Lumpur. Once operational, the data centre will support popular Google services such as Search, Maps, and Workspace, serving billions of users worldwide, including those in Malaysia. This development marks Malaysia as the 12th country to house a Google data centre.

The Google Cloud region is designed to deliver high-performance, low-latency cloud services to diverse clientele, including large enterprises, startups, and public sector organisations. Customers will benefit from advanced controls ensuring high security, data residency, and compliance standards. This new cloud region will be supported by existing Google Cloud Dedicated Cloud Interconnect locations in Cyberjaya and Kuala Lumpur. It will join Google's network of 40 cloud regions and 121 zones globally.

Ruth Porat, President, Chief Investment Officer, and Chief Financial Officer of Alphabet and Google, expressed enthusiasm about the venture, stating that it marks the largest planned investment in Malaysia by Google, a testament to Malaysia's importance as a growth market. She highlighted the partnership with the Malaysian government aimed at advancing the nation's 'Cloud First Policy,' which includes implementing best-in-class cybersecurity standards.

YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Malaysia's Minister of Investment, Trade, and Industry, praised Google's investment, noting its alignment with the New Industrial Master Plan 2030 (NIMP 2030). He emphasised the potential of the new data centre and cloud region to empower Malaysia's industries by leveraging AI and advanced technologies. This initiative is expected to foster a robust talent ecosystem and stimulate innovation, driving growth across various sectors.

Google's investment also aligns with Malaysia's energy transition goals. YAB Dato' Sri Fadillah Yusof, Deputy Prime Minister and Minister of Energy Transition and Water Transformation, lauded the establishment of a state-of-the-art data centre prioritising efficiency, sustainability, and clean energy.

In the education sector, Google has launched two AI literacy programmes in line with the Ministry of Education's National Digital Education Policy. The Gemini Academy, which began its pilot phase in November 2023, focuses on helping educators use generative AI tools to improve productivity. The programme has benefitted over 600 educators and aims to reach 15,000 by the end of 2024. Another initiative, Experience AI, was launched last month in collaboration with Google DeepMind, Raspberry Pi Foundation, and Penang Science Cluster. This programme aims to train 1,000 educators and impact 10,000 students aged between 11 and 14 in AI-related subjects.

The strategic collaboration between the Malaysian government and Google, formalised in November 2023, seeks to create inclusive growth opportunities for Malaysians and local companies through AI and cloud technologies. According to a Google-commissioned evaluation by AlphaBeta, the investments and programmes announced are expected to contribute more than US$3.2 billion to Malaysia's GDP and generate 26,500 jobs by 2030.

Google's commitment to Malaysia highlights the nation's growing prominence in the global technology landscape. This investment is anticipated to benefit multiple sectors, including healthcare, education, agriculture, manufacturing, and logistics. Malaysian officials and industry leaders have welcomed Google's initiative, acknowledging its role in reinforcing Malaysia's digital infrastructure, cybersecurity, and technological advancement.