Tech giant Oracle announced on Wednesday its intention to invest over $6.5 billion in cloud services data centers in Malaysia, joining a wave of U.S. companies eager to enhance their AI infrastructure in Southeast Asia.

The company stated that this new cloud region will assist organizations in Malaysia in modernizing their applications, migrating workloads to the cloud, and innovating through data, analytics, and artificial intelligence.

Oracle is focused on expanding its global cloud infrastructure business and recently projected that it will exceed $100 billion in revenue by fiscal 2029, fueled by the rising demand for cloud services.

This new cloud region in Malaysia will mark Oracle's third facility in Southeast Asia, following two existing centers in Singapore. Garrett Ilg, Oracle's executive vice president for Japan and Asia Pacific, emphasized that "Malaysia presents unique growth opportunities for organizations aiming to accelerate their expansion with cutting-edge digital technologies."

He further stated, "Our multi-billion dollar investment reinforces our commitment to Malaysia as a regional hub for cloud infrastructure and a comprehensive suite of software as a service applications available within the country."

The announcement also included remarks from Malaysia's Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz, who welcomed the investment, noting that it would enable companies to leverage innovative AI and cloud technologies to enhance their global competitiveness.

"Oracle's choice to establish a public cloud region in Malaysia highlights the country's infrastructure readiness and its emerging status as a leading destination for digital investments in Southeast Asia," he added.

Oracle has joined the ranks of major global technology companies making significant digital investments in Southeast Asia. In May, Alphabet, the parent company of Google, revealed plans to invest $2 billion to establish its first data center in Malaysia.

On Monday, Google announced its intention to invest $1 billion in developing digital infrastructure in Thailand, which will include a new data center.

Additionally, both Amazon and Microsoft have declared multi-billion dollar investments in the region, driven by the increasing demand for artificial intelligence.

On Tuesday, Malaysian Prime Minister Anwar Ibrahim unveiled the country's initiative to create a National Cloud Policy.

Anwar highlighted that this policy will concentrate on four key areas: enhancing public service innovation and efficiency, as well as improving user trust and data security.

Furthermore, the government will establish a National Artificial Intelligence Office to oversee all AI-related initiatives.

Anwar emphasized that these efforts aim to position Malaysia as a competitive player in the global AI arena.