Oracle investing $6.5 billion in Malaysia

Malaysia Investment

Oracle is investing more than $6.5 billion to develop artificial intelligence and cloud computing infrastructure in Malaysia. The company plans to open a cloud region in the country that will offer over 150 infrastructure and cloud services, including Oracle’s AI offerings. Customers in Malaysia will have access to Oracle Cloud Infrastructure generative AI agents and OCI Supercluster, Oracle’s AI supercomputer in the cloud.

The OCI Supercluster has up to 131,072 Nvidia Blackwell GPUs with Nvidia ConnectX-7 NICs for RoCEv2 networking, liquid cooling, and Nvidia Quantum-2 InfiniBand networking. YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Malaysia’s minister of investment, trade, and industry, said, “We warmly welcome Oracle’s $6.5 billion investment in Malaysia, which represents yet another expansion of their 36-year footprint in Malaysia. This investment will empower Malaysian entities, especially small and medium-sized enterprises, with innovative and cutting-edge AI and cloud technologies to enhance their global competitiveness.

It is also a significant step towards realizing the country’s New Industrial Master Plan’s ambitious vision of creating 3,000 smart factories by 2030.”

Garrett Ilg, executive vice president and general manager, Japan and Asia Pacific, Oracle, added, “Malaysia offers unique growth opportunities for organizations looking to accelerate their expansion with the latest digital technologies.

Oracle expands Malaysia cloud infrastructure

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.”

The exact location for the cloud region has not been disclosed, but much of Malaysia’s data center market is split between Johor and Kuala Lumpur.

In August 2024, Advanced Info Service announced plans to launch a cloud service using Oracle Alloy. Earlier this year, two major Malaysian companies migrated to OCI. Malaysia has become a significant data center market in the Asia Pacific, especially since neighboring Singapore established a moratorium on data center developments.

Although Singapore is starting to ease restrictions around new data center developments, Malaysia continues to see spillover developments from the neighboring city-state. At the start of October 2024, a new data center broke ground in Kuala Lumpur, Malaysia, shortly after announcing a partnership to offer sovereign cloud services in the country. Amazon and Microsoft have also announced plans to establish cloud regions in Malaysia, with Microsoft planning an Azure region in Kuala Lumpur, which is yet to open.

This investment highlights Malaysia’s growing prominence as a data center hub in the Asia Pacific region.