(Bloomberg) — Oracle Corp. plans to spend $6.5 billion to build a cloud services center in Malaysia, becoming the latest global tech name to invest in AI infrastructure in Southeast Asia.
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The American company will establish a cloud region in the country, essentially a network of data centers providing services to enterprise customers. This includes access to Nvidia Corp. chips. which can be used to accelerate the development of generative AI, he said in a statement.
Oracle’s commitment marks the latest major spending by a major U.S. technology company in Southeast Asia, which is rapidly becoming a cloud services hub due to its vast landmasses, government support and its rapidly growing markets.
Alphabet Inc.’s Google announced plans on Monday to invest $1 billion to build data centers in Thailand – in addition to similar projects in Malaysia – while Amazon.com Inc. unveiled its own plan to $9 billion investment in Singapore in May. Microsoft Corp. also talked about spending some $4 billion to build data centers and other infrastructure for the region.
Oracle, which is trying to expand its cloud infrastructure business globally to compete for a piece of the AI pie, did not offer timelines or details on what it plans to build in Malaysia . The global market for AI-related products could reach $990 billion by 2027 as adoption of the technology disrupts businesses and economies, Bain & Co estimates.
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