Following Microsoft's and Apple's expansion into Southeast Asia, Google has announced a US$2 billion investment in Malaysia, as reported by Commercial Daily News on May 31. The plan includes building its first data center in the country, creating a new Google Cloud region, and further developing artificial intelligence (AI) capabilities. This move makes Google the latest American tech giant, after Microsoft and Apple, to expand its footprint in Southeast Asia.
Backed by the Malaysian government to support its cloud-first policy, the new data center will support Google's services, including Search, Maps, and Workspace. Meanwhile, the new cloud region will provide related services to private enterprises and government agencies.
Several American tech giants have recently accelerated their expansion into Southeast Asia. For instance, Microsoft announced a US$2.2 billion investment in early May to enhance Malaysia's latest cloud and AI infrastructure, along with additional investments in Indonesia and Thailand.
Global server shipment volume is estimated to reach 13.486 million units in 2024, up 5.1% year-on-year, according to the Market Intelligence & Consulting Institute (MIC), a division of the Institute for Information Industry (III) and one of Taiwan's leading institutes. The growth is attributed to a resurgence driven by factors such as generative AI and the expansion plans of several major American companies, including AWS, Microsoft, Google, and Meta, which are increasing their capital expenditures in data centers this year. MIC also predicts that the global proportion of AI server shipments will continue rising, growing from 16.2% in 2024 to 21.5% in 2027.