Oracle announces $6.5 billion investment for establishing cloud facilities in Malaysia

Oracle plans to invest $6.5 billion to establish cloud facilities in Malaysia.

Oracle announces $6.5 billion investment for establishing cloud facilities in Malaysia
On Wednesday, Oracle announced its intention to invest over $6.5 billion to establish its first public cloud region in Malaysia, marking a significant investment from a global technology company in the Southeast Asian nation.

Several major tech firms, such as Microsoft, Nvidia, Alphabet's Google, and China's ByteDance, have made substantial digital investments in Malaysia over the past year, primarily focusing on cloud services and data centers. This influx is driving an infrastructure boom, largely fueled by the increasing demand for artificial intelligence.

A cloud region refers to the physical location of a company's public cloud facilities. Oracle's investment will stand as one of the largest tech investments to date, surpassing the $6.2 billion planned by Amazon Web Services (AWS) revealed last year.

The upcoming public cloud region aims to support Malaysian organizations in modernizing their applications, migrating workloads to the cloud, and innovating with data, analytics, and AI, as stated by the U.S. company.

Moreover, this expansion will enable Oracle’s Malaysian clients—including government agencies, financial institutions, and airline and hospitality firms—to utilize cloud services located within the country rather than relying on external services, according to Garret Ilg, Oracle's Executive Vice President for Japan and Asia Pacific.

"Those customers look to Oracle to support their innovation... to move into standardized processes to be faster, to be more controlled and be more cost-effective," Ilg remarked in an interview with Reuters.

This new cloud region will mark Oracle’s third in Southeast Asia, following two existing facilities in Singapore. The company operates a total of 50 public cloud regions across 24 countries, according to its website.

Recently, Oracle raised its revenue forecast for fiscal 2026 and anticipates exceeding $100 billion in revenue by fiscal 2029, showcasing the growing demand for its cloud services.

Oracle is also looking to expand further across Asia, with plans for additional data centers and infrastructure projects "from Japan all the way down to New Zealand... all the way to India," as stated by Ilg.

Chris Chelliah, Oracle's senior vice president for technology and customer strategy in Japan and Asia Pacific, mentioned that Malaysia represents significant growth potential and market opportunities for the company in its broader AI and data center development strategy within Southeast Asia.

In the past year, Microsoft has unveiled cloud services investments totaling $1.7 billion in Indonesia, while Amazon has plans for $9 billion in Singapore and $5 billion in Thailand.

Additionally, Google recently commenced construction on a $2 billion data center in Malaysia, part of investments projected to contribute over $3 billion to the Malaysian economy by 2030.

Anna Muller for TROIB News