It marks the largest planned investment Google has made in the Southeast Asian country.
ADVERTISEMENTGoogle will develop a data centre and cloud hub in Malaysia as part of a $2 billion (€1.8 billion) investment.
The move comes after a similar announcement from Microsoft which said it would invest $2.2 billion (€2 billion) over the next four years to build new cloud and artificial intelligence (AI) infrastructure in Malaysia.
Prime Minister Anwar Ibrahim hailed the investment as a sign of faith in Malaysia’s governance and economy.
The investment is estimated to contribute $3.2 billion (€2.9 billion) to the country's GDP and create some 26,500 jobs by 2030.
Google said in a statement that the new hubs will be developed at a business park in central Malaysia's Selangor state.
The data centre will power services like Search and Maps.
It will also help to foster AI literacy for students and educators in the country, which will be the 12th to house a Google data centre.
The Malaysian Google Cloud hub, which will deliver services to large enterprises, startups and the public sector, will join 40 regions and 121 zones currently in operation around the world, it said.
"This investment builds on our partnership with the government of Malaysia to advance its ‘Cloud First Policy,’ including best-in-class cybersecurity standards," said Ruth Porat, Alphabet Inc.'s president and chief financial officer.
Anwar met with Porat and other business leaders during visits to the US last year.
The investments are a coup for Anwar as he seeks to consolidate his strength against a strong Islamic opposition.
