Google will invest$2 billion to establish its first data centre and Google Cloud region in Malaysia, marking a significant expansion into Southeast Asia. This investment will be located in Sime Darby Property's Elmina Business Park in central Selangor. It aims to advance Malaysia's digital ambitions, offering AI capabilities and other advanced technologies to enhance the local industry's global competitiveness.

The new data centre will support services like Search, Maps, and Workspace, while the cloud centre will cater to local businesses and public sector organisations. Google's Chief Financial Officer, Ruth Porat, emphasised the partnership's role in fostering an ecosystem for innovation and driving digital transformation in Malaysia. This collaboration builds on a previous agreement announced last November between the Malaysian government and Google to accelerate domestic innovation.

The move is part of a broader trend of global tech giants' significant investments in Southeast Asia. Microsoft has committed$2.2 billion to cloud services in Malaysia and$1.7 billion in Indonesia. Additionally, Malaysian conglomerate YTL is partnering with Nvidia in a$4.3 billion AI infrastructure project, while Amazon plans to invest$9 billion in Singapore,$5 billion in Thailand, and$6 billion in Malaysia.