Oracle to Invest More Than US$6.5 Billion in AI and Cloud Computing in Malaysia

Rhea-AI Summary

Oracle has announced plans to invest over US$6.5 billion to open a public cloud region in Malaysia, aiming to meet the growing demand for AI and cloud services in the country. The investment will enable Malaysian organizations to leverage AI infrastructure and services, and migrate critical workloads to Oracle Cloud Infrastructure (OCI).

The upcoming cloud region will offer 150+ infrastructure and SaaS services, including OCI Generative AI Agents, accelerated computing, and OCI Supercluster. This expansion is expected to boost Malaysia's digital economy and drive AI-fueled innovation. The investment aligns with Malaysia's New Industrial Master Plan's vision of creating 3,000 smart factories by 2030.

Oracle's decision underscores Malaysia's infrastructure readiness and its growing position as a premier Southeast Asian destination for digital investments. The cloud region will provide customers with low-latency access to cloud services, helping them meet data residency requirements within Malaysia.

Positive

• Oracle's US$6.5 billion investment in a new cloud region in Malaysia
• Offering of 150+ infrastructure and SaaS services, including advanced AI capabilities
• Alignment with Malaysia's vision of creating 3,000 smart factories by 2030
• Potential to boost Malaysia's digital economy and drive AI-fueled innovation
• Provision of low-latency access to cloud services within Malaysia's borders

Negative

• None.

Insights

Financial Analyst

Oracle's planned $6.5 billion investment in Malaysia represents a significant strategic move to capitalize on the country's rapidly growing cloud and AI market. This expansion aligns with IDC's projection of a 27.2% CAGR for Malaysia's public cloud services market from 2022 to 2027, indicating strong growth potential.

The investment will likely strengthen Oracle's competitive position against other cloud providers in Southeast Asia. By offering a comprehensive suite of 150+ cloud services, including AI infrastructure and SaaS applications, Oracle is positioning itself to capture a larger share of the region's digital transformation initiatives.

For investors, this move signals Oracle's commitment to long-term growth in emerging markets and its focus on high-demand areas like AI and cloud computing. The investment could lead to increased revenue streams from the region, potentially boosting Oracle's overall financial performance in the coming years.

Tech Expert

Oracle's investment in Malaysia is strategically significant from a technological standpoint. By establishing a local cloud region, Oracle addresses critical needs for data sovereignty and low-latency access, which are essential for AI and cloud adoption in regulated industries.

The inclusion of OCI Generative AI Agents and OCI Supercluster with NVIDIA GPU support positions Oracle to compete effectively in the rapidly evolving AI market. The ability to offer up to 131,072 NVIDIA Blackwell GPUs is particularly noteworthy, as it provides the computational power necessary for training and deploying large AI models.

Oracle's unique approach of offering AI and cloud services across public, dedicated and hybrid environments sets it apart from competitors. This flexibility, combined with the comprehensive suite of services, could accelerate enterprise cloud adoption and AI innovation in Malaysia, potentially establishing Oracle as a preferred provider for businesses looking to modernize their IT infrastructure.

Oracle plans to open a cloud region in Malaysia, including 150+ infrastructure and SaaS services, to help boost the country's digital economy and drive AI-fueled innovation  

Organizations across Malaysia can accelerate AI innovation with Oracle Cloud Infrastructure's high performance and built-in security, powerful data, and distributed cloud capabilities

Upcoming cloud region to extend OCI's footprint in Asia Pacific to 12 public cloud regions

AUSTIN, Texas and KUALA LUMPUR, Malaysia, Oct. 1, 2024  /PRNewswire/ -- To meet the rapidly growing demand for its artificial intelligence (AI) and cloud services in Malaysia, Oracle today announced plans to invest more than US$6.5 billion to open a public cloud region in the country. The upcoming cloud region will enable Oracle customers and partners in Malaysia to leverage AI infrastructure and services and migrate mission-critical workloads to Oracle Cloud Infrastructure (OCI).

The planned public cloud region will help organizations in Malaysia modernize their applications, migrate all types of workloads to the cloud, and innovate with data, analytics, and AI. Customers can have access to OCI Generative AI Agents with retrieval-augmented generation (RAG) capabilities; accelerated computing and generative AI services to help keep sovereign AI models within country borders; and OCI Supercluster, the largest AI supercomputer in the cloud—orderable with up to 131,072 NVIDIA Blackwell GPUs with NVIDIA ConnectX-7 NICs for RoCEv2 networking or NVIDIA GB200 NVL72 rack solutions using liquid cooling and NVIDIA Quantum-2 InfiniBand networking. In addition, 150+ services, including Oracle Autonomous Database, HeatWave MySQL Database Service, Oracle Cloud VMware Solution, OCI Kubernetes Engine, and Oracle Fusion Cloud Applications Suite will also be available, offering customers infrastructure, platform, or SaaS services.

"We warmly welcome Oracle's US$6.5 billion investment in Malaysia, which represents yet another expansion of their 36-year footprint in Malaysia," said YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, minister of investment, trade and industry (MITI), Malaysia. "This investment will empower Malaysian entities, especially small and medium-sized enterprises, with innovative and cutting-edge AI and cloud technologies to enhance their global competitiveness. It is also a significant step towards realising the country's New Industrial Master Plan's ambitious vision of creating 3,000 smart factories by 2030. Oracle's decision to establish a public cloud region in Malaysia underscores Malaysia's infrastructure readiness, and its growing position as a premier Southeast Asian destination for digital investments." 

"Malaysia offers unique growth opportunities for organizations looking to accelerate their expansion with the latest digital technologies," said Garrett Ilg, executive vice president and general manager, Japan & Asia Pacific, Oracle. "Our multi-billion dollar investment affirms our commitment to Malaysia as a regional gateway for cloud infrastructure as well as a comprehensive suite of SaaS applications deployed within Malaysia."

"Rapidly growing demand for AI services prompts calls for more data centers that store large amounts of data and computational power to train and deploy AI models," said Franco Chiam, vice president, cloud, data center and future digital infrastructure, Asia Pacific, IDC. "According to IDC FutureScape 'The Infrastructure and Cloud Impact 2024 Predictions', Malaysia's public cloud services market is expected to grow by 27.2 percent CAGR from 2022 to 2027. The upcoming Oracle cloud region in Malaysia, therefore, signals the country's potential to become a hub for technological innovation and growth in Southeast Asia."

OCI Provides Customers with the Latest AI Infrastructure Offerings and a Resilient and Scalable Cloud Foundation Running Within Malaysia's Borders

Oracle is the only hyperscaler capable of delivering AI and a full suite of 150+ cloud services across public, dedicated, and hybrid cloud environments, anywhere in the world. OCI's unique cloud architecture enables Oracle to launch more public cloud regions faster by starting with an optimal footprint and scaling as needed, and deploy dedicated cloud regions with hyperscale cloud services inside customer data centers. This approach helps meet the needs of all countries and markets without compromising cloud capabilities, while also providing the consistent performance, SLAs, and global pricing for which OCI has become known.

With the planned public cloud region in Malaysia, customers and partners can gain low-latency access to cloud services to help them derive better value from their data and securely store data and run applications to help address regulations and requirements for data residency within Malaysia. In addition, OCI's sovereign AI capabilities provide customers with increased control over where they locate their data and computing infrastructure and how they manage it. As a result, customers can achieve AI sovereignty by gaining the assurance that their use of AI is aligned with digital sovereignty frameworks.

Customers in Malaysia Welcome the Upcoming Public Cloud Region

Several NVIDIA AI infrastructure services will be available to customers, including NVIDIA AI Enterprise, NVIDIA Omniverse, and NVIDIA DGX Cloud.

"NVIDIA underpins the world's largest AI models for training and inferencing, and Oracle's continued expansion in Malaysia will help organizations across the country harness the power of AI," said Dennis Ang, senior director, enterprise business (ASEAN and ANZ region), NVIDIA. "With the new Oracle Cloud Malaysia Region, customers in Malaysia will gain local access to NVIDIA's accelerated, secure, and scalable platform for end-to-end AI development and deployment on OCI, helping accelerate the development of generative AI applications."

About Oracle Distributed Cloud

Oracle's distributed cloud delivers the benefits of cloud with greater control and flexibility. Oracle's distributed cloud lineup includes:

• Public cloud: Hyperscale public cloud regions serve any size of organization, including those requiring strict EU sovereignty controls. See the full list of regions here.
• Dedicated cloud: Customers can run all OCI cloud services in their own data centers with OCI Dedicated Region, while partners can resell OCI cloud services and customize the experience using Oracle Alloy. Oracle also operates separate U.S., UK, and Australian Government Clouds, and Isolated Cloud Regions for U.S. national security purposes. Each of these products provide a full cloud and AI stack that customers can deploy as a Sovereign Cloud.
• Hybrid cloud: OCI delivers key cloud services on-premises via Oracle Exadata Cloud@Customer and Compute Cloud@Customer and is already managing deployments in over 60 countries. Additionally, OCI Roving Edge Infrastructure, which consists of multiple configurations of ruggedized and portable high-performance devices, helps customers leverage remote AI inferencing at the edge.
• Multicloud: Options including Oracle Database@AWS, Oracle Database@Azure, Oracle Database@Google Cloud, HeatWave MySQL on AWS and Microsoft Azure, Oracle Interconnect for Microsoft Azure, and Oracle Interconnect for Google Cloud allow customers to combine key capabilities from across clouds.

Additional Resources

• Learn more about the Oracle Cloud Regions
• Learn more about Oracle Cloud Infrastructure

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

Future Product Disclaimer
The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, timing, and pricing of any features or functionality described for Oracle's products may change and remains at the sole discretion of Oracle Corporation.

Trademarks
Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

 

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SOURCE Oracle

FAQ

What is Oracle's investment plan for Malaysia in 2024?

Oracle plans to invest more than US$6.5 billion to open a public cloud region in Malaysia, offering 150+ infrastructure and SaaS services, including advanced AI capabilities.

How will Oracle's investment impact Malaysia's digital economy?

The investment is expected to boost Malaysia's digital economy by enabling organizations to leverage AI infrastructure and services, and migrate critical workloads to Oracle Cloud Infrastructure (OCI).

What AI services will be available in Oracle's new Malaysian cloud region?

The cloud region will offer OCI Generative AI Agents, accelerated computing and generative AI services, and OCI Supercluster, the largest AI supercomputer in the cloud.

How does Oracle's investment align with Malaysia's industrial goals?

The investment supports Malaysia's New Industrial Master Plan's vision of creating 3,000 smart factories by 2030 by providing advanced cloud and AI technologies.

What benefits will Oracle's cloud region bring to Malaysian businesses?

The cloud region will provide low-latency access to cloud services, help meet data residency requirements, and enable businesses to leverage AI and cloud technologies to enhance their global competitiveness.