Google and Amazon announce plans to build hyperscale data centers in Malaysia.

Amazon Web Services (AWS), Microsoft, Google Cloud, and Telekom Malaysia have been granted conditional approval to build and manage hyperscale data centers and cloud services in Malaysia, as announced by Prime Minister Muhyiddin Yassin. The initiative is anchored in the government's Digital Economy Blueprint, known as the MyDigital initiative, and aims to empower cloud computing services in the public sector while driving mass digital adoption. The four approved cloud service providers (CSPs) are expected to invest between RM12 to RM15 billion (US$2.96 – US$3.70 billion) over the next five years to establish these hyperscale facilities.

As part of the government's "Cloud First" strategy, Malaysia is targeting to migrate 80% of public data to hybrid cloud systems by the end of 2022. According to the Prime Minister, "For a more effective and smooth data collection and management, this strategy also helps to reduce government costs in information technology management in the long run. All these cloud services will allow big data, artificial intelligence (AI), Internet of Things and other applications to be utilized to enhance and strengthen government services."

To strengthen local capabilities, the government has proposed appointing three local information communication technology (ICT) companies as managed service providers (MSPs). These companies—Enfrasys Solutions, Prestariang Systems, and Cloud Connect—will work alongside the CSPs to manage cloud services for public sector agencies.

Hyperscale data centers can accommodate thousands of servers and millions of virtual machines, serving as a delivery mechanism for cloud-powered businesses and applications. These facilities offer enormous scalability, allowing organizations to control all aspects of their operations. The technology is fundamental to cloud computing, big data, and distributed systems, utilized by major companies including Facebook, Amazon, and Google. Geographic location plays a significant role in data center performance; as distance from the data center decreases, website speed increases, making proximity to the target audience a key consideration for service delivery and performance optimization.