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Google to Invest $2 Billion in Malaysia, Build Data Center

(Bloomberg) -- Google committed to making $2 billion in investments in Malaysia, including developing its first data center and a cloud facility.

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The pledge marks Google’s largest planned investment in the Southeast Asian nation, according to Alphabet Inc. Chief Financial Officer Ruth Porat in a statement Thursday.

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The data center and Google Cloud region facility will support 26,500 jobs across various sectors in the country, with the total economic impact valued at $3.2 billion, according to Malaysia’s trade ministry. The site of the investments will be in Sime Darby Property’s Elmina Business Park in Selangor state, it added.

US tech giants have stepped up their investments in Southeast Asia in recent months, committing billions of dollars as they seek new growth opportunities. The CEOs of Microsoft Corp., Apple Inc. and Nvidia Corp. have all traveled through the region to sketch out strategic plans and meet with heads of state.

Microsoft’s Chief Executive Officer Satya Nadella said this month the company would invest $2.2 billion in Malaysia, in addition to similar pledges for Indonesia and Thailand. Microsoft and Google are competing fiercely for leadership in artificial-intelligence services, seeking customers to adopt their offerings in the burgeoning field.

Google said that, in addition to the development of cloud computing services, it would support AI literacy programs for students and educators.

Read More: Tech Giants Start to Treat Southeast Asia Like Next Big Thing

(Updates with Malaysia Trade Ministry’s comments in third paragraph)

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