Oracle to fund USD 6.5 billion to Establish cloud facilities in Malaysia

ORACLE intends to establish its initial public cloud region in Malaysia with an investment exceeding US$6.5 billion, as announced by the company on Wednesday (Oct 2), marking a significant investment by a global tech company in the South-east Asian nation.

Microsoft, Nvidia, Alphabet's Google, and ByteDance from China have pledged billions in digital investments in Malaysia for cloud services and data centers, fueling a surge in infrastructure due to the rising need for AI.

A cloud region is where a company's public cloud facilities are physically situated. Oracle's upcoming venture is on track to become one of the biggest individual tech investments to date, surpassing the US$6.2 billion in planned expenditures by Amazon's cloud division AWS that was revealed last year.

The upcoming public cloud region will assist Malaysian organizations in updating their applications, transferring their workload to the cloud, and experimenting with data, analytics, and AI, according to the American company.

Oracle's executive vice-president for Japan and Asia-Pacific, Garrett Ilg, mentioned that it would enable the company's Malaysian clients, such as government agencies, financial institutions, and airline and hospitality firms, to utilize cloud services located within the country instead of abroad.

“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 said.