Alphabet’s (NASDAQ:GOOGL) Google disclosed its plans to invest $2 billion in Malaysia to build its first data center and a cloud facility in the region. This move is in response to the growing demand for artificial intelligence (AI) and cloud services.
The facility is expected to create 26,500 jobs by 2030. Google stated that the data center will be used to power digital services such as Google search and maps in the country. Additionally, the cloud center will assist companies and organizations in meeting security and compliance standards, including data storage requirements.
Southeast Asia Expansion Drive
Recently, several tech giants, including Microsoft (MSFT), Amazon (AMZN), and Apple (AAPL), announced plans to invest significant amounts in Southeast Asia to meet the rising demand for AI and cloud computing services.
Earlier this month, Microsoft revealed an investment of about $2.2 billion in Malaysia, with similar plans for Indonesia and Thailand. Amazon also declared a $9 billion investment to expand its cloud services in Singapore. Last month, Apple disclosed a $250 million plan to expand its Singapore campus, including creating new jobs in AI.
Analysts Bullish on GOOGL’s AI leadership
According to the TipRanks Stock Analysis tool, “Bulls Say, Bears Say,” analysts bullish on GOOGL expect the company’s growth to be driven by the introduction of new AI products.
What Is the Price Target for GOOGL?
Overall, Wall Street is optimistic about the stock. It has a Strong Buy consensus rating based on 32 Buy and five Hold recommendations. The analysts’ average price target on Alphabet stock of $197.53 suggests an upside of 14.77%. Shares of the company have gained 30.5% in the past six months.
