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Tech giant, Oracle, has announced a massive $6.5 billion investment in cloud services data centers in Malaysia. The move places Oracle among a growing number of American tech giants racing to establish a strong AI infrastructure in the region.
The firm said the cloud region would help organizations in the country modernize their applications, migrate their workload to the cloud and innovate with data, analytics and artificial intelligence. Oracle is working to expand its cloud infrastructure business globally. The company recently projected it will surpass $100 billion in revenue in fiscal 2029, driven by increasing demand for cloud services.
Malaysia's new cloud region will be the firm's third in Southeast Asia, following two facilities in neighbouring Singapore.
"Malaysia offers unique growth opportunities for organisations looking to accelerate their expansion with the latest digital technologies," Garrett Ilg, Oracle's executive vice president for Japan and Asia Pacific, said in a statement.
"Our multi-billion dollar investment affirms our commitment to Malaysia as a regional gateway for cloud infrastructure as well as a comprehensive suite of software as a service applications deployed within Malaysia."
The statement also quoted Malaysia's Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz as welcoming the investment, saying it would help firms with innovative and cutting-edge AI and cloud technologies to boost their global competitiveness.
Oracle is the latest global tech giant to announce major digital investments in Southeast Asia. Google-parent Alphabet said in May it would invest $2 billion to house the firm's first data center in Malaysia.
Malaysian Prime Minister Anwar Ibrahim on Tuesday unveiled plans for a National Cloud Policy, aimed at propelling the country to the forefront of the global AI landscape. The policy will focus on four key areas: enhancing public service efficiency and innovation, boosting user trust, strengthening data security, and establishing a National Artificial Intelligence Office to oversee AI initiatives.
This strategic move signals Malaysia's ambition to become a leading player in the rapidly evolving AI arena.
Lewis Musonye
