Oracle Corporation (NYSE:ORCL) shares are trading lower premarket on Wednesday. The company disclosed plans to invest over $6.5 billion to open a public cloud region in Malaysia.
The company aims to meet the country's growing demand for AI and cloud services.
This new cloud region will allow Oracle's customers and partners in Malaysia to access AI infrastructure, services, and migrate critical workloads to Oracle Cloud Infrastructure (OCI).
Oracle plans to open a cloud region in Malaysia, offering over 150 infrastructure and SaaS services to boost the country's digital economy and drive AI innovation.
This new cloud region will expand OCI's presence in the Asia Pacific to 12 public cloud regions.
YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, minister of investment, trade and industry (MITI), Malaysia said, "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."
Garrett Ilg, executive vice president and general manager, Japan & Asia Pacific, Oracle added, "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."
Read: Oracle CloudWorld Highlights 'AI-Driven Tech Services,' But Revenue Growth Requires Patience: Analyst
Notably, IDC FutureScape's 'The Infrastructure and Cloud Impact 2024 Predictions' forecasts Malaysia's public cloud services market to grow at a 27.2% CAGR from 2022 to 2027.
Last month, the company announced several new partnerships with various companies, including contracts with Guardian Life, Anduril, and RAFAEL enhancing Oracle's cloud and AI capabilities, driving efficiency and innovation.
Investors can gain exposure to Oracle through iShares Expanded Tech-Software Sector ETF (BATS:IGV) and Pacer Funds Pacer Data and Digital Revolution ETF (NYSE:TRFK).
Price Action: ORCL shares are down 0.04% at $167.10 premarket at the last check Wednesday.
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