Yahoo Finance Oracle to Invest $6.5 Billion in Malaysia AI, Cloud Services Hub
(Bloomberg) -- Oracle Corp. plans to spend $6.5 billion building a cloud services center in Malaysia, becoming the latest global tech name to invest in Southeast Asian AI infrastructure.
Most Read from Bloomberg
Singapore Ends 181 Years of Horse Racing to Make Way for Homes
Mexico City Restricts Airbnb Rentals to Curb ‘Gentrification’
For a Master of Brutalist Provocations, a Modest Museum Appraisal
NYC Schools Reverse Course on Cell-Phone Ban After Parents Balk
The US company will establish a cloud region in the country, essentially a network of data centers that provide services to corporate clients. That includes access to Nvidia Corp. chips that can be used to accelerate generative AI development, it said in a statement.
Oracle’s pledge marks the latest major outlay by a major US tech company in Southeast Asia, which is fast becoming a center for cloud services because of ample land, government support and rapidly growing markets.
Alphabet Inc.’s Google said Monday it aims to invest $1 billion to build data centers in Thailand — on top of similar projects for Malaysia — while Amazon.com Inc. unveiled its own $9 billion investment plan in Singapore in May. Microsoft Corp. has also talked about spending some $4 billion building data centers and other infrastructure for the region.
Oracle, which is trying to expand its cloud infrastructure business globally to vie for a slice of the AI pie, didn’t offer timeframes or specifics on what it intended to build in Malaysia. The global market for AI-related products could hit $990 billion by 2027, as the technology’s adoption disrupts companies and economies, Bain & Co. estimates.
Most Read from Bloomberg Businessweek
Rotting Rice in India Fuels Discontent About Modi’s Food Policy
How a Short Seller’s Attack Threatens This Spanish Family Company
Elon Musk’s Role in Reanimating the Far-Right Term ‘Remigration’
©2024 Bloomberg L.P.
