Oracle to invest $6.5 billion in cloud services centre in Malaysia
Big tech firms such as Microsoft, Nvidia, Google and ByteDance have announced billions of dollars worth of investments into Malaysia in the past year, with a focus on cloud services and data centers.
Oracle plans to spend USD 6.5 billion building a cloud services center in Malaysia, the latest major tech company to invest in AI infrastructure in Southeast Asia.
The US company will establish a network of data centers that provide services to corporate clients, Bloomberg reports.
That includes access to Nvidia chips that can be used to boost generative AI development, Oracle said in a statement.
Oracle is expanding its cloud infrastructure business globally. It recently projected it will surpass USD 100 billion in revenue in fiscal 2029, thanks to growing demand for cloud services.
Big tech firms such as Microsoft, Google, Nvidia and ByteDance have announced billions of dollars worth of investments into Malaysia in the past year, with a focus on cloud services and data centers.
“We warmly welcome Oracle’s US$6.5 billion investment in Malaysia, which represents yet another expansion of their 36-year footprint in Malaysia,” said YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, minister of investment, trade and industry (MITI), Malaysia. “This investment will empower Malaysian entities, especially small and medium-sized enterprises, with innovative and cutting-edge AI and cloud technologies to enhance their global competitiveness.”
“Malaysia offers unique growth opportunities for organizations looking to accelerate their expansion with the latest digital technologies,” said Garrett Ilg, executive vice president and general manager, Japan & Asia Pacific, Oracle. “Our multi-billion dollar investment affirms our commitment to Malaysia as a regional gateway for cloud infrastructure as well as a comprehensive suite of SaaS applications deployed within Malaysia.”
Southeast Asia is fast turning into a hub for cloud services due to ample land, government support and rapidly growing markets.
This week Google said it was aiming to invest USD 1 billion to build data centers in Thailand. Google also broke ground on a USD 2 billion data centre in Malaysia. Amazon unveiled a USD 9 billion investment plan in Singapore in May. Microsoft has also pledged a USD 4 billion investment in building data centers and other infrastructure in the region.
The global market for AI-related products is expected to reach USD 990 billion by 2027, according to Bain & Co.
