Google invests RM9.4 billion in Malaysia for new data centre and cloud region

Google has announced a substantial investment of RM9.4 billion (approximately US$2 billion) to establish its first data centre and Google Cloud region in Malaysia. This initiative, which marks Google's largest planned investment in the country, is set to significantly enhance Malaysia's digital landscape and economic growth.

The new data centre will be strategically located in Sime Darby Property's Elmina Business Park in Greater Kuala Lumpur. This location is poised to become a hub for technological innovation and digital services, supporting Google's popular platforms such as Search, Maps, and Workspace. The Ministry of Investment, Trade and Industry (Miti) highlighted that this project is expected to support 26,500 jobs across various sectors and have an economic impact of about RM15.04 billion.

"When operational, Malaysia will join the 11 countries where Google has built and currently operates data centers to serve users around the world," Miti stated. This development underscores Malaysia's growing importance in the global digital economy and its potential to attract further high-tech investments.

The Google Cloud region will deliver high-performance and low-latency cloud infrastructure, analytics, and AI services to a diverse range of clients, including large enterprises, startups, and public sector organizations. This infrastructure will adhere to the highest security and regulatory compliance standards, ensuring robust and reliable service delivery.

Investment, Trade and Industry Minister Tengku Zafrul Aziz emphasized the transformative impact of Google's investment on Malaysia's digital ambitions as outlined in the New Industrial Master Plan 2030 (NIMP 2030). "The Google data center 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, with an estimated economic impact valued at RM15.04 billion," he said.

The initiative is also expected to foster a robust talent ecosystem, enhancing digital skills and creating new business opportunities for Malaysians. "The increased capacity of and reliability on cloud services will support various sectors – including healthcare, education, and finance – to foster a more connected and resilient world," Miti added.

This investment is a testament to Malaysia's strategic position in the global digital economy and its commitment to advancing technological innovation. As Google continues to expand its footprint in the region, Malaysia is set to become a pivotal player in the digital transformation landscape, driving growth and innovation across multiple sectors.