Oracle has announced a significant investment of over $6.5 billion to establish its first public cloud region in Malaysia. This move marks the latest major commitment by a global tech giant to Southeast Asia, signaling a robust infrastructure boom fueled by the rising demand for artificial intelligence (AI).
Since last year, technology leaders such as Microsoft, Nvidia, Alphabet’s Google, and China’s ByteDance have poured billions into Malaysia’s digital landscape, primarily focusing on cloud services and data centers. Oracle’s investment is set to be one of the largest single expenditures in the sector, surpassing Amazon’s $6.2 billion investment in its cloud unit AWS announced the previous year.
A cloud region refers to the physical and geographic location of a company's public cloud facilities. Oracle's new region in Malaysia will empower local organizations to modernize their applications, migrate workloads to the cloud, and innovate using data, analytics, and AI. According to Garret Ilg, Oracle Executive Vice President for Japan and Asia Pacific, the investment will enable Malaysian customers, including government agencies, financial institutions, and companies in the airline and hospitality sectors, to utilize locally based cloud services.
\"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 stated in an interview with Reuters.
This new cloud region will be Oracle’s third in Southeast Asia, following two existing facilities in Singapore. Globally, Oracle operates 50 public cloud regions across 24 countries. The company recently raised its fiscal 2026 revenue forecast, projecting to exceed $100 billion in revenue by fiscal 2029, highlighting the growing demand for its cloud services.
Oracle plans to continue its expansion across Asia, eyeing more data centers and infrastructure projects from Japan to New Zealand and India. Chris Chelliah, Oracle's Senior Vice President for Technology and Customer Strategy in Japan and Asia Pacific, emphasized Malaysia's growth potential as part of a broader push for AI and data center development in the region.
In addition to Oracle, Microsoft's $1.7 billion investment in Indonesia, Amazon's $9 billion in Singapore and $5 billion in Thailand, and Google's recent groundbreaking of a $2 billion data center in Malaysia are contributing to an estimated $3 billion boost to Malaysia's economy by 2030.
Reference(s):
Oracle to invest $6.5 billion to set up cloud facilities in Malaysia
cgtn.com
