Google has unveiled plans to invest $2 billion in Malaysia, marking a significant milestone in the country's digital transformation journey.

The Alphabet-owned tech giant said that it aims to establish its inaugural data centre and Google Cloud region within the nation's borders, positioning Malaysia as a strategic hub for its operations.

The Malaysian government lauded the investment as a catalyst for advancing the country's digital aspirations. The introduction of cutting-edge artificial intelligence (AI) capabilities and other advanced technologies is expected to propel local industries up the global value chain, unlocking new realms of innovation and competitiveness.

Southeast Asia, with its burgeoning tech-savvy population of 670 million, has emerged as a coveted destination for global technology giants. Titans such as Microsoft, Amazon, Nvidia, and Apple have been actively investing in the region, recognising its immense potential.

According to Google's statement, the data centre and cloud region will reside within the Elmina Business Park in central Selangor state, a development by Sime Darby Property Berhad. The data centre will power essential services like Search, Maps, and Workspace, while also enabling the delivery of AI services. Concurrently, the cloud centre will cater to the needs of local firms and public sector organisations.

Ruth Porat, Google's chief financial officer, said: "Malaysia and Google are partnering to advance our shared work in creating a supportive ecosystem for innovation and unlocking the potential of digital transformation."

This announcement follows a collaboration between the Malaysian government and Google last November, aimed at accelerating domestic innovation.

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