Oracle to invest $6.5 billion in cloud services data centres in Malaysia
On Wednesday, tech giant Oracle announced its plan to invest over $6.5 billion in cloud services data centres in Malaysia, marking a significant move in expanding its cloud infrastructure business globally.
Implications of Oracle’s Investment
- Helps organisations in Malaysia modernise their applications
- Allows for migration of workloads to the cloud
- Facilitates innovation with data, analytics, and artificial intelligence
Oracle’s Expansion Strategy
The company aims to surpass $100 billion in revenue by fiscal 2029, driven by the increasing demand for cloud services. Malaysia’s new cloud region will be Oracle’s third in Southeast Asia, following two existing facilities in Singapore.
Malaysia’s Growth Opportunities
Garrett Ilg, Oracle’s executive vice president for Japan and Asia Pacific, highlighted Malaysia’s unique growth opportunities for organisations seeking to accelerate their expansion with digital technologies.
Government Support and Initiatives
Malaysia’s Investment, Trade, and Industry Minister Tengku Zafrul Abdul Aziz welcomed Oracle’s investment, emphasizing its potential to enhance firms’ global competitiveness with cutting-edge AI and cloud technologies.
Global Tech Giants’ Investments in Southeast Asia
Oracle joins other global tech giants like Google, Amazon, and Microsoft in announcing major digital investments in Southeast Asia. This trend reflects the region’s growing importance in the global digital landscape.
Malaysia’s National Cloud Policy and AI Initiatives
Malaysian Prime Minister Anwar Ibrahim recently announced plans to develop a National Cloud Policy, focusing on enhancing public service innovation, efficiency, user trust, and data security. The establishment of a National Artificial Intelligence Office aims to position Malaysia as a competitive player in the global AI landscape.
Analysis
Oracle’s substantial investment in Malaysia’s cloud services data centres signifies a strategic move to tap into the region’s growth opportunities and support organisations in their digital transformation journey. This development not only enhances Malaysia’s infrastructure readiness but also solidifies its position as a premier destination for digital investments in Southeast Asia.
Furthermore, the government’s initiatives to develop a National Cloud Policy and establish a National Artificial Intelligence Office demonstrate Malaysia’s commitment to leveraging advanced technologies for economic growth and global competitiveness. By fostering innovation and strengthening data security, Malaysia aims to position itself as a key player in the evolving digital landscape, attracting investments from leading tech companies and driving sustainable development.