Oracle Corporation has revealed plans to invest over $6.5 billion to establish its first public cloud region in Malaysia, marking a significant move in the ongoing tech investment trend in the Southeast Asian country.
The announcement, made on Wednesday, comes as major technology firms increasingly look to enhance digital infrastructure in Malaysia, a hub for cloud services and data centers driven by the surging demand for artificial intelligence (AI).
The investment will create a network of data centers designed to help organizations in Malaysia modernize applications, migrate workloads to the cloud, and utilize advanced data analytics and AI capabilities. Oracle’s Executive Vice President for Japan and Asia Pacific, Garrett Ilg, stated that the new cloud region would allow local customers—including government agencies and financial institutions—to access cloud services hosted domestically rather than relying on external providers.
“This investment affirms our commitment to Malaysia as a regional gateway for cloud infrastructure and a comprehensive suite of software-as-a-service (SaaS) applications deployed within the country,” Ilg said.
The upcoming cloud region in Malaysia will be Oracle’s third in Southeast Asia, complementing its existing facilities in Singapore. The company operates 50 public cloud regions across 24 countries, aiming to expand its footprint further in Asia with additional data centers planned across the region.
In the past year, Malaysia has witnessed significant investment from various tech giants. Microsoft recently announced cloud service investments totaling $1.7 billion in Indonesia, while Amazon plans to invest $9 billion in Singapore and $5 billion in Thailand. Furthermore, Google has begun constructing a $2 billion data center in Malaysia, which is projected to contribute more than $3 billion to the country’s economy by 2030.
Franco Chiam, Vice President for Cloud and Data Center at IDC Asia Pacific, noted that the growing demand for AI services is driving the need for more data centers that can handle large volumes of data and computational power necessary for training AI models.
As Oracle continues to expand its cloud infrastructure globally, this investment highlights Malaysia’s potential as a burgeoning hub for technological innovation in Southeast Asia. With a projected global market for AI-related products reaching $990 billion by 2027, companies are increasingly recognizing the importance of robust digital infrastructure to support future growth and development.
