If I had a nickel every time a huge corporation has invested in Malaysia for AI-related reasons this year, I’d have three nickels—which isn’t a lot, but it’s weird that it happened thrice.
Alright, not weird per se, but certainly noteworthy. It seems like we’re witnessing Malaysia’s emersion as a data centre powerhouse.
In case you missed it, here’s a recap of the three global giants that have announced planned investments into the country’s AI capabilities.
1. Microsoft
On May 2, 2024, Microsoft Chairman and CEO Satya Nadella announced that the company will be investing US$2.2 billion (RM10.5 billion) in Malaysia—the single largest investment Microsoft has made in Malaysia.
To be dispersed over the next four years, the investment will go towards advancing cloud and AI technology.
Specifically, the investment will focus on:
- Building cloud and AI infrastructure in Malaysia
- Creating AI skilling opportunities for an additional 200,000 people in Malaysia
- Strengthening its partnership with the Malaysian government to establish a national AI Centre of Excellence and enhance the nation’s cybersecurity capabilities
- Supporting the growth of Malaysia’s developer community
The investment size: US$2.2 billion
What it’s for: Cloud and AI infrastructure, AI skilling opportunities, a national AI Centre of Excellence, growth for the developer community
2. Google
On May 30, Google announced that it’s planning a US$2 billion investment (RM9.4 billion) to develop its first data centre and Google Cloud region in Malaysia. It will be located in Sime Darby Property’s Elmina Business Park in Greater Kuala Lumpur.
For context, cloud regions are the actual geographic locations where your public cloud resources are located. Google Cloud infrastructure services are available in locations across the globe, and these locations are divided into regions and zones.
This new setup in Malaysia will be part of Google’s global network of 40 regions and 121 zones.
Beyond the new infrastructure, Google also announced two key programmes that’ll boost AI literacy among students and teachers in Malaysia.
One is Google’s Gemini Academy that helps teachers use generative AI tools, while the other is Experience AI, which aims to increase teachers’ confidence in teaching AI concepts to kids.
The investment size: US$2 billion
What it’s for: Building Google’s first data centre and Google Cloud region in Malaysia
3. ByteDance
On June 7, it was reported that the parent company of TikTok, ByteDance, is planning to invest around RM10 billion (US$2.13 billion) into Malaysia. This was according to Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade, and Industry.
With that investment, the Chinese company intends to turn Malaysia into an AI hub.
Tengku Zafrul pointed out that TikTok, through ByteDance System Sdn Bhd, has developed a data centre at Sedenak Tech Park in Kulai, Johor.
The minister also stated that the company has taken future requirements into considerations, and thus plans to invest an additional RM1.5 billion to expand its data centre facilities.
The investment size: US$2.13 billion
What it’s for: Turning Malaysia into an artificial intelligence hub
Growing the size of the pie
Beyond these three recent investments, there are many more global companies who have been investing in Malaysia.
For instance, late last year, it was announced that NVIDIA would be partnering with Malaysian conglomerate YTL’s utilities unit (YTL Power) for a US$4.3 billion AI development project.
NEXTDC, an Australian Securities Exchange 100-listed tech company, also announced last year that it plans to invest RM3 billion over the next five to 10 years in the development of Kuala Lumpur 1 (KL1), a Tier IV-certified data facility in Petaling Jaya.
During KL20 Summit, one common theme that we heard was about Malaysia’s geopolitical advantages.
Besides our geographical location that places us in the centre of Southeast Asia, Malaysia’s foreign policy has always hinged on neutrality, which makes us quite a strategic nation to invest in.
This seems to be true, especially considering that both American and Chinese companies are continuing to put their money into Malaysia.
Bolstered by these foreign investments, we’re excited to see our local economy continue to thrive and further develop.
- Read articles we’ve written about Malaysian startups here.
Featured Image Credit: ByteDance / Microsoft / Anthony Quintano
