TLDR:
- Oracle plans to invest $6.5 billion in a new public cloud region in Malaysia
- The investment aims to meet growing demand for AI and cloud services
- Malaysian customers will have access to Oracle’s advanced AI and cloud technologies
- This move aligns with Malaysia’s goal of creating smart factories by 2030
- The investment is expected to boost technological innovation in Southeast Asia
Oracle has announced plans to invest over $6.5 billion to establish a new public cloud region in Malaysia. This significant investment aims to meet the increasing demand for artificial intelligence (AI) and cloud services in the country and the broader Southeast Asian region.
The new cloud region will be Oracle’s twelfth in the Asia Pacific area and will allow Oracle customers and partners in Malaysia to access advanced AI infrastructure and services.
Organizations will be able to modernize their applications, move critical workloads to Oracle Cloud Infrastructure (OCI), and innovate using data analytics and AI technologies.
Customers in Malaysia will have access to a wide range of Oracle services, including OCI Generative AI Agents, which use retrieval-augmented generation (RAG) capabilities.
The investment will also bring OCI Supercluster to the region, which Oracle describes as the largest AI supercomputer in the cloud. This powerful infrastructure will include up to 131,072 NVIDIA Blackwell GPUs and other high-performance components.
Oracle will offer over 150 cloud services to Malaysian customers. These include the Oracle Autonomous Database, MySQL Database Service HeatWave, Oracle Cloud VMware Solution, OCI Kubernetes Engine, and the Oracle Fusion Cloud Applications Suite. This comprehensive suite of services aims to provide infrastructure, platform, and software-as-a-service (SaaS) solutions to meet diverse business needs.
The investment has been welcomed by Malaysian officials. YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Malaysia’s Minister of Investment, Trade, and Industry, expressed enthusiasm for the project.
He highlighted its potential to empower local businesses, particularly small and medium enterprises, with cutting-edge AI and cloud technologies.
The minister also noted that Oracle’s expansion confirms Malaysia’s growing appeal as a digital investment hub in Southeast Asia.
Oracle’s investment aligns with Malaysia’s goal of creating smart factories by 2030 and underscores the country’s readiness for digital investments. Garrett Ilg, Executive Vice President and General Manager for Japan & Asia Pacific at Oracle, emphasized Malaysia’s potential for growth with digital technologies and reiterated the company’s commitment to the region.
The International Data Corporation (IDC) predicts significant growth in Malaysia’s public cloud services market. Franco Chiam, Vice President of Cloud, Data Centre and Future Digital Infrastructure at IDC, noted that the market is projected to grow at a 27.2% compound annual growth rate (CAGR) from 2022 to 2027.
This growth forecast highlights the importance of Oracle’s new cloud region for technological innovation and development in Southeast Asia.
Oracle’s cloud architecture is designed for rapid deployment of public cloud regions, ensuring consistent performance, service level agreements (SLAs), and global pricing. The upcoming public cloud region in Malaysia will provide customers with low-latency access to cloud services, helping them maximize the value of their data and comply with data residency regulations within the country.
The new cloud region will also foster an environment conducive to NVIDIA AI infrastructure services. Dennis Ang, NVIDIA’s Senior Director for the ASEAN and ANZ region, expressed excitement about the collaboration.
He stated that it will enable organizations in Malaysia to leverage NVIDIA’s platform for AI development and deployment on OCI.
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