According to Google, Malaysia’s Investments Will Add $3 Billion to GDP and Generate 26,500 Jobs by 2030
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By Pavethran Batmanathen
On Tuesday, Google announced that its investments in Malaysia would generate 26,500 jobs and contribute over $3 billion to the nation’s economy by 2030, coinciding with the groundbreaking of its new data center and Cloud region in the country. The construction of the $2 billion data center comes on the heels of Monday’s announcement of a multi-year partnership with local technology company Dagang NeXchange Berhad (DNeX) to offer sovereign cloud services.
This announcement also follows Google’s commitment to invest $1 billion in Thailand for a data center and cloud region aimed at addressing the rising demand for cloud services and supporting Artificial Intelligence (AI) adoption across Southeast Asia. Ruth Porat, Google’s President and Chief Investment Officer, stated at an event in Malaysia that the company’s investments are intended to deliver high performance and reliability to meet the increasing demand for cloud and AI services nationwide.
Digital investments have significantly boosted Malaysia’s economy this year, with growth surpassing market expectations in the past two quarters, while the ringgit has emerged as one of the strongest currencies in Asia. Porat highlighted that Google’s initiatives in Malaysia also focus on sustainability efforts, such as enhancing water quality, and on skilling, noting that 355,000 Malaysians have already received training in digital skills since 2019.
Google’s initiatives are part of a broader trend of global tech companies expanding their footprint in Southeast Asia, competing for a larger share of a region with a youthful, tech-savvy population of 670 million. Earlier this year, Microsoft announced investments of $1.7 billion in cloud services in Indonesia, while Amazon plans to invest $9 billion in Singapore, $5 billion in Thailand, and $6.2 billion in Malaysia.
Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade, and Industry, emphasized that data centers would bolster the country’s aspirations to become a regional leader in the technology sector, particularly in AI. He pointed out that the demand for data processing and storage solutions is soaring regionally, positioning Malaysia to effectively meet this growing need.
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