In a significant move to bolster its cloud infrastructure, Oracle Corporation is set to invest a staggering $6.5 billion in building a state-of-the-art cloud services hub in Malaysia. This strategic decision makes Oracle the latest global tech giant to tap into Southeast Asia’s burgeoning artificial intelligence (AI) infrastructure market.
The US-based company plans to establish a cutting-edge cloud region in Malaysia, comprising a network of advanced data centers designed to provide top-tier services to corporate clients. Notably, this infrastructure will also offer access to high-performance Nvidia Corp. chips, specifically engineered to accelerate the development of generative AI applications.
Oracle’s substantial investment in Malaysia is part of a larger trend, as Southeast Asia emerges as a prime destination for cloud services due to its abundance of land, supportive government policies, and rapidly expanding markets. Other tech behemoths, such as Alphabet Inc.’s Google, Amazon.com Inc., and Microsoft Corp., have also announced significant investments in the region, totaling billions of dollars.
As the global AI market is projected to reach a staggering $990 billion by 2027, according to Bain & Co. estimates, Oracle’s move is seen as a strategic bid to expand its cloud infrastructure business and capitalize on the growing demand for AI-driven solutions. While details on the project’s timeline and specifics remain under wraps, Oracle’s commitment to Malaysia underscores its ambition to become a major player in the global AI landscape.
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