Google has announced a $2 billion investment in Malaysia to develop AI infrastructure, a data center, and a cloud hub. This investment is expected to create 26,500 jobs and add $3.2 billion to Malaysia's GDP. The data center will be located in Elmina Business Park, Greater Kuala Lumpur, and will be Google's first data center and cloud facility in the country. The investment will also cover two AI training programs for Malaysian youth, including students and educators.

Google's investment is the largest planned investment in Malaysia to date and will help reduce latency in services across the country. The data center will be connected to Google's existing interconnect locations in Kuala Lumpur and Cyberjaya, providing connection access to businesses' on-premise network and the company's global network of 40 regions and 121 zones.

Malaysia's Minister of Investment, Trade and Industry, Zafrul Tengku Abdul Aziz, said that Google's $2 billion investment is in line with Malaysia's New Industrial Master Plan 2030. He added that the partnership will further advance Malaysia's digital ambitions and support the nation's service and manufacturing-based industries.

Google's investment comes after Microsoft announced a $2.2 billion investment in Malaysia. Tech giants such as Google, Microsoft, and Amazon have pledged billions of dollars of investments in countries like Thailand, Indonesia, Myanmar, Singapore, and Vietnam. The Southeast Asian region is emerging as a new business ground for AI advancement due to its educated talent pool and growing economy.

The investment will also help develop a robust talent ecosystem by facilitating the growth of digital skills, businesses, and careers. Google's partnership and continued investment will accelerate Malaysia's digital transformation, contributing to the Madani vision toward a more prosperous and technologically advanced Malaysia.

In addition to Google's essential services, the cloud side will provide services to clients, including different firms and organizations in the private and public sectors. The investment will also cover two AI training programs for Malaysian youth, including students and educators.

Google's investment is expected to add $3.2 billion to Malaysia's GDP and create 26,500 jobs by 2030. Jobs will be created in healthcare, finance, and education. The investment will also help develop a robust talent ecosystem by facilitating the growth of digital skills, businesses, and careers.

Google's announcement comes several weeks after rival Microsoft said it would invest $2.2 billion in artificial intelligence and cloud computing in Malaysia. US tech giants have been ramping up investment in Southeast Asia, home to a young computer-literate population of 670 million people and one of the fastest-growing regional economies.

Amazon earlier this month said it would invest $9 billion in Singapore to expand cloud infrastructure in the city-state, following earlier announcements of multibillion-dollar investments in Malaysia and Thailand. The Southeast Asian region is emerging as a new business ground for AI advancement due to its educated talent pool and growing economy. Western tech giants also consider the region an alternative to China, with whom US relations are tense.

Google's investment in Malaysia is a significant milestone in the company's expansion in Southeast Asia. The investment will help develop a robust talent ecosystem, facilitate the growth of digital skills, businesses, and careers, and contribute to Malaysia's digital transformation. The investment is also expected to add $3.2 billion to Malaysia's GDP and create 26,500 jobs by 2030.