Google Commits RM9.4 Billion Investment In Malaysia For Data Centre

In its goal to accelerate digital transformation in Malaysia, Google has committed an investment of RM9.4 billion (USD2 billion) for the development of its first Google data centre and Google Cloud in the region to meet the growing demand for cloud services locally and around the world, and build on Al literacy programmes for Malaysian students and educators.

The site of the Malaysia investments will be in Sime Darby Property’s Elmina Business Park, in Greater Kuala Lumpur.

The Google data centre will power Google’s popular digital services, such as Search, Maps, and Workspace, that billions of people and organisations worldwide, including those in Malaysia, use every day.

It will also play an essential role in enabling Google to deliver the benefits of Al to users and customers across the country. When operational, Malaysia will join the 11 countries where Google has built and now operates data centres serving users around the world, Google said in a statement today.

The Google Cloud region will deliver high-performance and low-latency services to large enterprises, startups, and public sector organisations. Google Cloud customers will benefit from key controls that allow them to maintain the highest security, data residency, and compliance standards, including specific data storage requirements.

The cloud region will be complemented by Google Cloud’s existing Dedicated Cloud Interconnect locations in Cyberjaya and Kuala Lumpur, which provide direct connections between an organization’s on-premises network and Google Cloud’s global network. The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world.

Ruth Porat, President and Chief Investment Officer; Chief Financial Officer of Alphabet and Google, said: “Google’s first data centre and Google Cloud region is our largest planned investment so far in Malaysia – a place Google has been proud to call home for 13 years. This investment builds on our partnership with the Government of Malaysia 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.”

Minister of Investment, Trade, and Industry (MITI) Tengku Zafrul Abdul Aziz, said: “Google’s USD2 billion investment in Malaysia will significantly advance the digital ambitions outlined in our New Industrial Master Plan 2030 (NIMP 2030). The Google data centre and Google Cloud region in Greater Kuala Lumpur, in particular, will empower our manufacturing and service-based industries to leverage AI and other advanced technologies to move up the global value chain.

“We also value 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 organisations of all sizes. We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the MADANI vision toward a more prosperous, technologically-advanced Malaysia.”

Deputy Prime Minister and Minister of Energy Transition and Water Transformation Dato’ Sri Fadillah Yusof, said: “We are proud to be supporting Google’s investment into Malaysia, which includes the establishment of a state-of-the-art data centre that prioritises efficiency, sustainability, and the use of clean energy.

“Google’s investment today aligns with Malaysia’s energy transition goals, and we are confident that it will set a new benchmark for responsible development in digital infrastructure, fostering a resilient digital ecosystem that benefits both Malaysia’s economy and environment.”

Meanwhile, Minister of Digital Gobind Singh Deo said: “The Ministry of Digital welcomes Google’s strategic investment and cloud region into Malaysia. This investment decision aligns with our vision to establish Malaysia as a regional hub for secure data flows, cloud computing, and Al innovation.

“We look forward to a progressive partnership with Google—particularly in the sectors of healthcare, education, agriculture, manufacturing, and logistics—which will complement our initiatives in strengthening Malaysia’s digital government, digital economy, and digital society, where every Malaysian will be empowered to succeed in the digital future.”

Investing in programs to foster Al literacy

As AI continues to transform various industries, it is crucial for educators to be equipped with the relevant knowledge and tools to prepare students for the future. In alignment with the Ministry of Education’s (MOE) National Digital Education Policy, Google has launched two programs to foster AI literacy for both students and educators. These programs expand Google’s ongoing commitment toward making digital skills more accessible to Malaysians.

Gemini Academy: Designed to help educators safely and responsibly use generative AI tools, such as Gemini, to boost productivity, the Gemini Academy has benefitted more than 600 educators in Malaysia since the launch of its pilot phase in November 2023. MOE is now formally expanding the program to more educational institutions, with the goal of benefiting 15,000 educators by the end of 2024.

Experience AI: Launched last month in Malaysia by Google DeepMind, the Raspberry Pi Foundation, and the Penang Science Cluster, Experience AI is designed to increase educators’ knowledge and confidence in delivering lessons about AI to students aged 11 to 14, by providing them with in-person training and equipping them with interactive lesson materials and tutorials. The program has an initial goal of training 1,000 educators in order to reach 10,000 students across Malaysia.

Supporting economic growth and a vibrant technology ecosystem

In November 2023, the Government of Malaysia and Google entered into a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies using Al and cloud technologies. The investments and programs announced today further advance Google’s work in Malaysia.

They are estimated to support more than US$3.2 billion in contributions to Malaysia’s GDP and 26,500 jobs by 2030, according to a Google-commissioned evaluation by AlphaBeta (part of Access Partnership). Google is proud to support the country’s continued digital transformation of its economy, in line with the MADANI Economy Framework and NIMP 2030.

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