Oracle Building $6.5 Billion Data Center In Malaysia Amid AI Boom

Oracle—U.S. tech giant cofounded by billionaire Larry Ellison—plans to invest more than $6.5 billion to develop a data center in Malaysia amid booming demand for artificial intelligence applications and cloud services across the region.

The data center will power a new public cloud region in Malaysia to help businesses upgrade their applications, move various workloads to the cloud, and leverage data, analytics, and AI, according to a release by the company on Wednesday.

“Malaysia offers unique growth opportunities for organizations looking to accelerate their expansion with the latest digital technologies,” Garrett Ilg, executive vice president and general manager, Japan & Asia Pacific, Oracle said in the statement. “Our multi-billion dollar investment affirms our commitment to Malaysia as a regional gateway for cloud infrastructure as well as a comprehensive suite of SaaS applications deployed within Malaysia.”

Malaysia is currently a hotbed for data center development. Yesterday, Google announced that it had started constructing its $2 billion data center project at Elmina Business Park in Selangor, north of Kuala Lumpur. YTL Power, the company owned by Malaysian tycoon Francis Yeoh, also has partnered with billionaire Jensen Huang's Nvidia to construct an AI-powered data center in Johor, a southern Malaysian state located north of Singapore. Global tech giants including Amazon, Infineon and Microsoft have also been ramping up capacity in the country.

The impending launch of an Oracle cloud region in Malaysia signals the country's promising potential to emerge as a hub for technological innovation and growth across Southeast Asia. “Rapidly growing demand for AI services prompts calls for more data centers that store large amounts of data and computational power to train and deploy AI models,” Franco Chiam, vice president, cloud, data center and future digital infrastructure, Asia Pacific of IDC said in the statement.

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