Oracle announced plans to invest more than $6.5 billion to set up its public cloud region in Malaysia.
Franco Chiam, vice president, cloud, data center and future digital infrastructure, Asia Pacific, IDC, said Malaysia’s public cloud services market is expected to grow by 27.2 percent CAGR from 2022 to 2027.
Oracle’s footprint in Asia Pacific will reach 12 public cloud regions, Garrett Ilg, Oracle’s Executive Vice President for Japan and Asia Pacific, said in a news statement. Oracle did not reveal the timeframe for its investment in Malaysia.
Another research report said the public cloud market in Malaysia is expected to reach $1.96 billion in 2024.
In April, Oracle revealed plans to invest $8 billion over 10 years to meet the demand for cloud and AI infrastructure in Japan.
In recent years, Malaysia has attracted significant investments from tech giants such as Microsoft, Nvidia, Google, and ByteDance. These companies have committed billions toward cloud services and data centers, fueling an infrastructure boom powered by the growing demand for artificial intelligence (AI).
Oracle said its investment in public cloud region will help Malaysian organizations modernize their applications, migrate workloads to the cloud, and leverage advanced data, analytics, and AI technologies.
The investment will allow local customers, including government agencies, financial institutions, airlines, and hospitality companies, to utilize cloud services within the country, enhancing data security and compliance.
Malaysia’s Growing Role in Southeast Asia’s Cloud Boom
Oracle’s Malaysian cloud region will be the company’s third in Southeast Asia, following two existing facilities in Singapore. The investment surpasses the $6.2 billion planned by Amazon Web Services (AWS) last year and reflects Oracle’s expansion strategy in the region, Reuters news report said.
Oracle’s move into Malaysia aligns with its broader ambition to expand across Asia. The company already operates 50 public cloud regions across 24 countries and aims to continue building data centers from Japan to India and New Zealand.
Chris Chelliah, Oracle’s Senior Vice President for Technology and Customer Strategy in Japan and Asia Pacific, highlighted the potential for growth in Malaysia, noting that the country offers promising market opportunities for cloud infrastructure and AI advancements.
The surge in cloud investments across Southeast Asia underscores the region’s increasing importance as a hub for digital infrastructure.
Microsoft’s $1.7 billion investment in Indonesia, Amazon’s $9 billion plan for Singapore, and Google’s recent groundbreaking on a $2 billion data center in Malaysia are all part of a larger push to capitalize on the booming demand for cloud and AI services.
Google’s investment alone is expected to contribute more than $3 billion to Malaysia’s economy by 2030, further positioning the country as a critical player in the global tech landscape.
Baburajan Kizhakedath
