Google plans to invest $2 billion in Malaysia to develop its first data center and Google Cloud Hub, the US tech giant’s latest major foray into the Southeast Asian country.
The news follows Microsoft’s recent announcement that it will invest $2.2 billion over the next four years to build new cloud and artificial intelligence infrastructure in Malaysia.
Prime Minister Anwar Ibrahim praised Google’s investment as a sign of confidence in the Malaysian government and economy. Anwar said Thursday that the investment is expected to pump $3.2 billion into the economy by 2030 and create 26,500 jobs.
The investment is a coup for Anwar, who wants to consolidate his power against his powerful Islamic opponents.
Google said in a press release that the new hub will be located in a commercial area in the central Malaysian state of Selangor to meet the growing demand for cloud services and artificial intelligence programs for Malaysian students and teachers.
Malaysia will be the 12th country to host a Google data center. The Google Cloud Hub in Malaysia, which serves large enterprises, startups and the public sector, will join 40 regions and 121 zones currently operating around the world.
“This investment builds on our partnership with the government of Malaysia to advance its ‘Cloud First Policy,’ including best-in-class cybersecurity standards,” said Ruth Porat, Alphabet Inc.’s president and chief financial officer.