In terms of potential, this investment is extremely interesting. Malaysia provides favorable conditions for tech companies, namely ample land, government support, and fast-growing markets. Oracle plans to establish a "cloud region", which essentially means creating a network of data centers that will provide services to corporate clients. Interestingly, these hubs will contain access to Nvidia chips, which are known for their ability to accelerate the development of generative AI. This only confirms that AI is likely to be one of the main drivers of growth in the near future.
Southeast Asia as a new technological base
However, Oracle is not the only company investing in this region. Google, which is part of Alphabet Inc., recently announced its plan to invest $1 billion to build data centers in Thailand and Malaysia. Amazon.com Inc. had already announced its intention to invest $9 billion in infrastructure construction in Singapore in May. Microsoft Corp. has also shown interest in Southeast Asia, planning to spend about $4 billion to build data centers and other infrastructure.
All of these investments indicate that Southeast Asia is rapidly becoming a key player in the cloud services and artificial intelligence market. The global market for AI products is expected to reach $990 billion by 2027, which Bain & Co. estimates will bring about huge changes in economic sectors around the world. This development could have a major impact on both companies and economies in the region, which leads me to consider further investments in this area.
My Investment Plans
Therefore, in my portfolio, I will monitor not only technology companies such as Oracle, Google, Amazon and Microsoft, but also investment opportunities in infrastructure and local markets in Southeast Asia, which can bring interesting returns in the future.