Malaysian technology company Dagang NeXchange Berhad (DNeX) and Google Cloud announced a multi-year partnership on Monday to deliver sovereign cloud services in Malaysia. 

This announcement coincides with Google’s efforts to enhance its presence in Southeast Asia. In May, Google revealed plans to invest $2 billion to establish its inaugural data center and Google Cloud region in the country.

The collaboration aims to meet the growing demand for cloud solutions that adhere to stringent data residency, security, and privacy standards, particularly in regulated sectors such as public services, finance, healthcare, and energy, according to a joint statement from both companies.

As part of the agreement, DNeX will be permitted to operate Google Distributed Cloud, which offers "air-gapped" solutions for Malaysian organizations, allowing operations without an Internet connection or a Google Cloud region. The companies did not disclose the financial details or duration of the agreement.

"Google Cloud and DNeX will provide organizations with advanced distributed cloud infrastructure, developer tools, and AI services necessary for driving digital transformation on their own terms," stated Karan Bajwa, Vice President of Google Cloud Asia Pacific.

Additionally, DNeX and Google Cloud are considering the establishment of an AI center of excellence to foster local talent in artificial intelligence, as mentioned by the firms.