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IT Home reported on November 4 that Alphabet-owned Google said on Wednesday local time that it plans to invest $15 billion in Malaysia (IT Home note: approximately 100.261 billion yuan at current exchange rates) to expand its data center and cloud computing operations there. As the artificial intelligence boom continues to drive demand for digital infrastructure, Google is increasing its investment in the sector.
According to a statement from Google, the company will build new computing centers and invest in improving local water security, electricity supply, and skills training for Malaysian residents. The investment plan will be implemented during 2027 and 2028.
Google is not the only global technology company expanding its operations in Malaysia. With relatively low operating costs, reliable infrastructure, and a location near business hubs such as Singapore, the country is attracting a growing number of technology giants.
Malaysia has become Southeast Asia's most important data center hub, attracting companies including Oracle, Amazon, Alibaba Group, and ByteDance. These companies all need to keep expanding their data storage and processing capacity to meet demand driven by the growing number of users of data-intensive AI services.
Google said the construction phase of the new campus over the next two years is expected to contribute $1.1 billion (approximately 7.352 billion yuan at current exchange rates) to Malaysia's economy and support more than 37,000 local jobs each year.
Once the data center begins operations, it is expected to sustain more than 9,000 local jobs each year, including positions for technicians, mechanical and electrical engineers, logistics managers, and security managers.
Alphabet Chief Investment Officer Ruth Porat said at an event in Kuala Lumpur that the investment “reflects our confidence in the strength of Malaysia's leadership, its skilled workforce, and its enthusiasm for advancing digital transformation.” Malaysian Prime Minister Anwar Ibrahim also attended the event.
Anwar said Google's investment both respects Malaysia's resource conditions and reflects confidence in its people. He said, “Our country has a stable environment, outstanding talent, and great ambitions, and has the ability to become a leading digital economy powerhouse in Southeast Asia.”
Earlier this week, Google also announced that it would provide $160 million (approximately 1.069 billion yuan at current exchange rates) in funding for shared water infrastructure in the Malaysian state of Negeri Sembilan, which lies south of Kuala Lumpur. The projects are intended to secure water supplies for Google's planned data center operations while also benefiting local communities.