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Partnership Aims To Foster Innovation And Digital Transformation

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Malaysia and Google collaborate to enhance AI capabilities, fostering innovation and enabling digital transformation, creating a robust ecosystem for growth.

Google, an American multinational technology company, is set to invest $2 billion in Malaysia to develop its first data center and Google cloud region. Google said that the data centre will power digital services including Search, Maps, and Workspace. 

It will also help deliver AI services. The cloud region meanwhile will offer high-performance and low-latency cloud infrastructure, analytics and AI services to the public and private sectors. While maintaining the highest security and regulatory compliance standards

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This is the latest in a wave of expansion by global tech firms into Southeast Asia  Microsoft, Amazon, Nvidia, and Apple have recently announced new projects in the region.

The Ministry of Investment, Trade and Industry, Miti said that the site will be located Sime Darby Property’s Elmina Business Park in Greater Kuala Lumpur. The investments will support 26,500 jobs across various sectors including healthcare, education, and finance with the total economic impact valued at RM 15.04 billion.

Miti Minister, Tengku Datuk Seri Zafrul Abdul Aziz said that this investment will significantly advance the digital ambitions outlined in the country’s New Industrial Master Plan 2030.

Fahmi Fadzil, Malaysia’s Minister of Communications and Multimedia has expressed optimism that this development would spur economic growth and bring digital transformation.

Ruth Porat, Google’s Chief Financial Officer, said in a statement that the collaboration of Google with Malaysia will bring advancement in the work culture to create a supportive ecosystem for innovation and unlock the potential of digital transformation.

Last November, Malaysia’s government and Google announced a collaboration to unlock the potential of domestic innovation.

Microsoft CEO Satya Nadella revealed plans for cloud services investments worth US$2.2 billion in Malaysia and US$1.7 billion in Indonesia. Malaysian conglomerate YTL’s utilities unit partnered with Nvidia to develop AI infrastructure, committing US$4.3 billion

Amazon has also been actively investing in the region, with announced plans to invest US$9 billion in Singapore, US$5 billion in Thailand, and US$6 billion in Malaysia. These investments highlight the growing significance of Southeast Asia in the global tech landscape. In the year 2021, Microsoft first shared its intention to develop a cloud region in Kuala Lumpur in that still hasn’t launched. The company recently committed to investing $2.2 billion in cloud computing and artificial intelligence (AI) services in Malaysia over the next four years.

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