Oracle has announced a major investment of over US$6.5 billion to establish a public cloud region in Malaysia, signaling its commitment to meet the growing demand for artificial intelligence (AI) and cloud services in the country. This strategic move will enable Oracle’s clients and partners in Malaysia to migrate mission-critical workloads to Oracle Cloud Infrastructure (OCI) and access AI infrastructure, marking a significant step in the nation’s digital evolution.
With the upcoming cloud region, Malaysian organizations will gain access to advanced data, analytics, and AI capabilities. These tools will support companies in modernizing their applications and migrating various workloads to the cloud. The planned infrastructure includes the OCI Supercluster, which is one of the largest AI supercomputers in the cloud. It boasts up to 131,072 NVIDIA Blackwell GPUs, NVIDIA ConnectX-7 NICs for RoCEv2 networking, and NVIDIA GB200 NVL72 rack solutions featuring liquid cooling and NVIDIA Quantum-2 InfiniBand networking. This technology will also facilitate access to accelerated computing and generative AI services, ensuring that sovereign AI models remain within Malaysia’s borders.
Oracle plans to offer more than 150 cloud services in Malaysia, encompassing platform, infrastructure, and software as a service (SaaS) offerings. Some of the key services include Oracle Autonomous Database, HeatWave MySQL Database Service, Oracle Cloud VMware Solution, OCI Kubernetes Engine, and Oracle Fusion Cloud Applications Suite. This diverse range of services is designed to cater to the needs of Malaysian enterprises seeking cloud and AI-driven innovations.
The announcement has been well-received by Malaysian officials. YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Malaysia’s Minister of Investment, Trade, and Industry, praised the investment as a significant milestone in Oracle’s 36-year presence in the country. According to him, the US$6.5 billion commitment will empower Malaysian businesses, especially small and medium-sized enterprises (SMEs), to compete on the global stage by utilizing advanced AI and cloud technologies. This development is also aligned with Malaysia’s New Industrial Master Plan, which aims to establish 3,000 smart factories by 2030.
Garrett Ilg, Oracle’s executive vice president and general manager for Japan & Asia Pacific, emphasized the importance of Malaysia as a regional hub for cloud infrastructure and services. He noted that Oracle’s investment reaffirms the company’s commitment to the country as a gateway for deploying digital technologies across Southeast Asia. This move positions Oracle to support organizations looking to accelerate growth through cutting-edge digital infrastructure.
Public Cloud Services Market in Malaysia
The establishment of the Oracle cloud region is timely, considering the increasing demand for AI services in Malaysia. Franco Chiam, vice president of cloud, data center, and future digital infrastructure at IDC for Asia Pacific, pointed out that the growing need for AI services is driving the development of data centers that can store vast amounts of data and provide the computational power necessary to train and deploy AI models. IDC FutureScape predicts that the public cloud services market in Malaysia will grow at a compound annual growth rate (CAGR) of 27.2% between 2022 and 2027. This expansion underscores Malaysia’s potential as a hub for technological innovation in Southeast Asia.
Oracle’s OCI would offer customers the latest AI infrastructure products and a robust, scalable cloud foundation within Malaysian borders. As a global hyperscaler, Oracle is capable of delivering AI alongside more than 150 cloud services across public, dedicated, and hybrid cloud environments. OCI’s unique architecture would allow Oracle to rapidly establish new cloud regions and even deploy dedicated cloud services within customer data centers, ensuring flexibility and reliability for clients.
One of the key advantages of the new public cloud region in Malaysia would be the low-latency access to cloud services. This would enable Oracle’s customers to derive more value from their data while ensuring compliance with local regulations related to data residency. The sovereign AI capabilities of OCI would provide clients with enhanced control over the location and management of their data, ensuring that their AI usage complies with digital sovereignty requirements.
NVIDIA’s involvement in the new Oracle Cloud Malaysia Region would further enhance the capabilities available to customers. Local organizations will gain access to NVIDIA’s advanced AI infrastructure services, including NVIDIA DGX Cloud, NVIDIA Omniverse, and NVIDIA AI Enterprise. Dennis Ang, senior director of enterprise business for ASEAN and ANZ regions at NVIDIA, highlighted that this partnership will help Malaysian businesses harness AI’s power through Oracle’s secure and scalable platform for AI development and deployment.
