Key Points
- Oracle plans to invest $6.5 billion in Malaysia for its first public cloud region, surpassing previous tech investments.
- The new cloud region will support Malaysian businesses and government agencies in AI, data analytics, and migration.
- Oracle is expanding its cloud services across Southeast Asia, reflecting a growing demand for AI-driven solutions.
- Microsoft announced $1.7 billion in cloud investments in Indonesia
On Wednesday, Oracle (ORCL.N) announced its plans to invest over $6.5 billion to establish its first public cloud region in Malaysia, marking a significant technology investment. This initiative aligns with a growing trend of global tech giants, such as Microsoft, Nvidia, Google, and ByteDance, making substantial digital investments in Southeast Asia, largely in cloud services and data centers.
These investments, driven by an increasing demand for artificial intelligence (AI), contribute to a regional infrastructure boom. Cloud regions are physical locations where a company’s cloud facilities operate, offering essential services like data storage, computing power, and AI-driven analytics. Oracle’s investment will surpass Amazon Web Services (AWS), which previously announced a $6.2 billion investment in Malaysia, positioning Oracle’s venture as one of the largest single-tech investments in the region.
According to Oracle, the new public cloud region will aid Malaysian businesses and government organizations modernize their applications, migrate workloads to the cloud, and leverage advanced data analytics and AI tools. This localized cloud region will benefit various sectors, including financial institutions, airlines, hospitality, and government agencies, by offering cloud services within Malaysia rather than relying on external facilities.
Garrett Ilg, Oracle’s Executive Vice President for Japan and Asia Pacific, emphasized the importance of this expansion for its Malaysian customers. He noted that clients are turning to Oracle to support their innovation, streamline processes, and achieve cost-efficiency in their operations. The cloud region in Malaysia will be Oracle’s third in Southeast Asia, following its two existing cloud facilities in Singapore. Globally, Oracle currently operates 50 public cloud regions across 24 countries.
Oracle’s ambitious expansion aligns with the company’s optimistic revenue forecasts. Last month, the company raised its fiscal 2026 revenue outlook and aims to surpass $100 billion by fiscal 2029, reflecting the rising demand for cloud services. Oracle also plans to extend its cloud infrastructure across Asia, including projects in Japan, India, New Zealand, and other Southeast Asian countries.
Chris Chelliah, Oracle’s Senior Vice President for Technology and Customer Strategy in Japan and Asia Pacific, highlighted Malaysia’s potential for further AI and data center development growth. This investment follows a broader pattern in Southeast Asia, where Microsoft announced $1.7 billion in cloud investments in Indonesia, and Amazon plans to invest $9 billion in Singapore and $5 billion in Thailand.
