Oracle is Set to Spend $6.5 Billion in Malaysia's Cloud Construction

Three billion ringgit has been allotted by Oracle for building cloud data centers in Malaysia to improve the local AI infrastructure as well as to stimulate digital transformation of the region.

Oracle is planning to invest more than $6.5bn in building data centers in Malaysia for cloud services. Those efforts are similar to those by other US tech companies investing in AI in Southeast Asia. The new cloud region is meant to help support Malaysian businesses with application modernization, cloud migration, and AI.

This investment will be the third investment Oracle will make in in-focus cloud resources within Southeast Asia. “If we look at the market potential there, it is easy to understand why our multi-billion dollar investment is in Malaysia,” said Garrett Ilg, the executive vice president of Japan and Asia Pacific Regions at Oracle Corporation.

Trading Industry Minister Tengku Zafrul Abdul Aziz had a chat with Malaysia's AI and Cloud Tech for its contribution on essentially making local businesses more competitive. Oracle's plan for a public cloud region in Malaysia had been welcomed by him, as the country was infrastructure ready and had great investment in digital.

Oracle’s pledge comes after other tech giants in the region commit to similar pledges. In Thailand, the firm made a $1 billion outlay for infrastructure in April, and said its first data center in Malaysia, in the state of Sarawak, will cost $2 billion.

In addition, Malaysian Prime Minister Anwar Ibrahim also stated his plans to draft a National Cloud Policy to encourage innovation in public services and the protection of data through, for example, a National Artificial Intelligence Office, as well as coordinating AI projects. Its aim is to transform Malaysia into a global player.