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Home Feature News

Reasons why Google prefers to invest in Malaysia over Indonesia

According to Google, numerous policies in Malaysia have driven the growth of data centers in the country. The Malaysian government offers many incentives to data center operators.

Haris Sunandar by Haris Sunandar
June 7, 2024
in Feature News, News
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Google revealed several reasons behind its decision to invest in Malaysia over Indonesia. Credit: Google

Google revealed several reasons behind its decision to invest in Malaysia over Indonesia. Credit: Google

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Heaptalk, Jakarta — Tech giant Google reportedly invest trillions of rupiahs in Malaysia to build data centers and cloud facilities. According to Google, numerous policies in Malaysia have driven the growth of data centers in the country. The Malaysian government offers many incentives to data center operators and focuses on areas designated as special economic zones in the digital sector by providing tax incentives. Moreover,  the additional incentives are offered for companies using green technology,.

The Malaysian government has streamlined bureaucracy, making it easier for business investments to enter the country. “For instance, in Malaysia, they can use only a high-level design to obtain building permits. Meanwhile, in Indonesia, it requires detailed engineering designs, which means more time and higher costs,” explained Google.

In a press release, Google announced the completion of its data center and cloud facility expansion in Singapore. With this project completed, Google has invested US$5 billion (Rp81 trillion) in technical infrastructure in Southeast Asia.

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Meanwhile, last week, the company committed to an investment of US$2 billion (Rp32.5 trillion) in Malaysia. This investment will be used to build the first data center and cloud region in the country, in line with the growing demand for artificial intelligence (AI) and regional cloud services. Malaysia’s regional cloud is an addition to Google’s network, which includes 40 regions and 121 zones worldwide.

Tags: cloud facilitiesdata centergooglemalaysia

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