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Oracle to invest $6.5 billion to set up cloud facilities in Malaysia
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Oracle to invest $6.5 billion to set up cloud facilities in Malaysia
Oct 2, 2024 10:42 PM

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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.

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