Google to invest RM9.4 billion in Malaysia, support over RM15.04 billion in positive economic impact

KUALA LUMPUR - Technology giant Google is set to invest US$2 billion (RM9.4 billion) in Malaysia, including the development of its first Google data centre and Google Cloud region to meet the growing demand for cloud services locally and around the world, and artificial intelligence (Al) literacy programmes for students and educators.

Ruth Porat, president and chief investment officer, and chief financial officer of Alphabet and Google, said Google’s first Malaysian data centre and Google Cloud region is the group’s 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 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,” she said in a statement today.

Alphabet is the holding company of Google.

Google said its investment is estimated to support more than US$3.2 billion (RM15.04 billion) in positive economic impact and 26,500 jobs by 2030.

It said the data centre will power its popular digital services, such as Search, Maps, and Workspace, that billions of people and organisations worldwide use every day, including those in Malaysia.

"It (the data centre) 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,” it said.

Concerning the Google Cloud region, Google said it will deliver high-performance and low-latency services to large enterprises, startups, and public sector organisations.

It said 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 organisation’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,” it said.

Commenting on the announcement, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Google’s US$2 billion investment will significantly advance the digital ambitions outlined in Malaysia’s New Industrial Master Plan 2030 (NIMP 2030).

He said the Google data centre and Google Cloud region in Greater Kuala Lumpur, in particular, will empower the country’s manufacturing and service-based industries to leverage AI and other advanced technologies to move up the global value chain.

"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,” he said.

In November 2023, the government and Google entered into a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies using AI and cloud technologies.

Meanwhile, Malaysian Investment Development Authority (Mida) chief executive office Sikh Shamsul Ibrahim Sikh Abdul Majid said Google’s decision to establish its first data centre in Malaysia demonstrates its confidence in Malaysia’s robust infrastructure, skilled workforce, and favourable business climate.

"This data centre will not only bring Google’s advanced cloud, data analytics, and AI services closer to local businesses, educational institutions, and the rakyat, it will also solidify Malaysia’s position as a regional innovation hub, empowering users and ecosystem players alike to harness cutting-edge technology for their growth and development,” he said.

Sikh Shamsul Ibrahim added that Mida remains committed to facilitating further investments and supporting Google’s continued growth in Malaysia. - BERNAMA