[Source – economictimes.indiatimes.com]
Major Investment in Southeast Asia
Oracle Corporation has announced plans to invest more than $6.5 billion to establish its first public cloud region in Malaysia, marking one of the largest tech investments in the country. This significant move follows a wave of digital investments in Malaysia by global technology firms such as Microsoft, Nvidia, Google, and ByteDance, with most focusing on cloud services and data centers. The demand for these services has surged due to the growing importance of artificial intelligence (AI) and related technologies.
The planned public cloud region will be a crucial part of Malaysia’s expanding digital infrastructure, helping organizations modernize their operations and harness the power of AI, data, and analytics. Oracle’s investment surpasses the $6.2 billion commitment made by Amazon Web Services (AWS) last year, signaling strong competition in the Southeast Asian tech market.
Benefits for Malaysian Businesses
The establishment of a public cloud region will enable Oracle’s Malaysian customers, including government agencies, financial institutions, and companies in the airline and hospitality sectors, to access cloud services locally. Oracle’s Executive Vice President for Japan and Asia Pacific, Garrett Ilg, emphasized that the new cloud region will offer improved speed, control, and cost-effectiveness for customers looking to innovate and streamline their processes.
“Customers rely on Oracle to support their innovation and help them move towards more standardized, efficient operations,” Ilg said in an interview with Reuters. By keeping cloud services within Malaysia, companies can benefit from enhanced security and regulatory compliance.
Expanding Oracle’s Footprint in Southeast Asia
This new venture will be Oracle’s third public cloud region in Southeast Asia, following two existing facilities in Singapore. Globally, Oracle operates 50 public cloud regions across 24 countries and is actively expanding its infrastructure across the Asia-Pacific region. The company has ambitious growth plans, projecting revenue to exceed $100 billion by fiscal 2029, driven by increasing demand for cloud services.
Oracle sees Southeast Asia, particularly Malaysia, as a vital area for future growth, and the company’s senior vice president for technology and customer strategy in Japan and Asia Pacific, Chris Chelliah, highlighted Malaysia’s potential as a key market. Oracle’s investment aligns with other major tech companies making significant contributions to the region, including Microsoft’s $1.7 billion investment in Indonesia and Google’s $2 billion data center in Malaysia.
Rising Competition in the Region
Oracle’s investment is helping to position Malaysia as rapidly becoming a hub for tech investments, with numerous global giants setting their sights on the country. Google, for instance, recently broke ground on a $2 billion data center, contributing to an expected $3 billion boost to the Malaysian economy by 2030. The country’s strategic location and growing tech ecosystem make it an attractive destination for these large-scale digital investments.
