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Oracle's investment set to be one of the largest in
Malaysia
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Cloud region to help Malaysian organizations modernize and
innovate with AI
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Oracle says planning further expansion across Asia
By Danial Azhar
KUALA LUMPUR, Oct 2 (Reuters) - Oracle plans to
invest more than $6.5 billion to set up its first public cloud
region in Malaysia, the company said on Wednesday, the latest
major investment by a global tech firm into the Southeast Asian
country.
Technology giants including Microsoft ( MSFT ), Nvidia ( NVDA )
, Alphabet unit Google and China's ByteDance
have announced billions of dollars worth of digital investments
into Malaysia since last year, mostly in cloud services and data
centres, powering an infrastructure boom driven by growing
demand for artificial intelligence (AI).
A cloud region is the physical, geographic location
where a company's public cloud facilities are located. Oracle's
venture is set to be one of the largest single tech investments
so far, outpacing the $6.2 billion planned spending by Amazon's ( AMZN )
cloud unit AWS announced last year.
The planned public cloud region will help organisations in
Malaysia modernise their applications, migrate their workload to
the cloud, and innovate with data, analytics and AI, the U.S.
firm said in a statement.
It would also allow the firm's Malaysian customers which
include government agencies, financial institutions, and airline
and hospitality companies, to use cloud services based in the
country, rather than those based externally, said Oracle's
Executive Vice President for Japan and Asia Pacific Garrett
Ilg.
"Those customers look to Oracle to support their innovation
... to move into standardised processes to be faster, to be more
controlled and be more cost-effective," Ilg told Reuters in an
interview.
The cloud region in Malaysia would be Oracle's third in
Southeast Asia, after its two existing facilities in Singapore.
It currently has 50 public cloud regions across 24 countries,
according to its website.
Oracle last month raised its fiscal 2026 revenue forecast
and said it expects to cross $100 billion in revenue in fiscal
2029, indicating rising demand for its cloud services.
The company also wants to continue its expansion across
Asia, with more data centres and infrastructure projects planned
"from Japan all the way down to New Zealand... all the way to
India," Ilg said.
Chris Chelliah, Oracle's senior vice president for
technology and customer strategy in Japan and Asia Pacific, said
Malaysia provided further growth potential and market
opportunities for the company as part of a broader AI and data
centre development push in Southeast Asia.
In the past year, Microsoft ( MSFT ) has announced cloud services
investments worth $1.7 billion in Indonesia, while Amazon ( AMZN ) has
announced plans to invest $9 billion in Singapore and $5 billion
in Thailand.
Google on Tuesday broke ground on a $2 billion data centre
in Malaysia, part of investments that it said would contribute
more than $3 billion to the country's economy by 2030.