Dagang NeXchange Berhad (DNeX) and Google Cloud have announced a multi-year strategic partnership aimed at delivering next-generation sovereign cloud services for Malaysia. This move responds to the growing demand for cloud solutions that meet stringent data residency, security, and privacy regulations within key sectors, including public services, financial services, healthcare, and energy.
Under this agreement, DNeX will operate Google Distributed Cloud (GDC) as a Managed GDC Provider (MGP), providing organizations in Malaysia with air-gapped cloud infrastructure to ensure compliance with local regulations. “Malaysia’s public sector and regulated industries require cloud capabilities that guarantee digital sovereignty while adhering to stringent regulatory standards,” said Karan Bajwa, Vice President for Asia Pacific at Google Cloud. “We’re pleased to be addressing this need by partnering with DNeX to deliver GDC air-gapped for local organizations.”
The air-gapped configuration, a key feature of GDC, allows cloud services to function entirely within a customer’s chosen environment, with no connectivity to the public internet or Google Cloud region. This ensures organizations can leverage advanced AI and analytics capabilities while maintaining data sovereignty.
Through this partnership, DNeX will offer deployment options for GDC air-gapped on-premises or within partner data centers, tailored to meet specific workload requirements. The infrastructure includes general-purpose CPUs and GPUs to optimize performance based on the needs of various industries. DNeX Executive Chairman, Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail, emphasized the significance of this move for Malaysian organizations: “Organizations in Malaysia’s regulated industries are eager to deliver modern digital services to their stakeholders, but are constrained by limited access to cloud services that meet strict sovereignty requirements.”
The agreement also grants access to Vertex AI, Google Cloud’s enterprise AI platform, enabling organizations to develop and deploy machine learning and AI applications while keeping data secure. DNeX’s offering will include AI models such as Gemma and Google’s pre-trained models for speech recognition and other language applications, supporting more than 100 languages, including Bahasa Malaysia.
In addition to the sovereign cloud services, both companies are exploring the creation of an AI Centre of Excellence (AI COE). This center would foster local talent and develop AI solutions to address real-world challenges. “An AI COE will help upskill Malaysians and DNeX’s workforce in particular,” said Tan Sri Syed Zainal, further noting that the initiative aligns with Malaysia’s goal to establish itself as a regional leader in AI.
This partnership follows Google Cloud’s prior announcement to establish its first data center and cloud region in Malaysia, reaffirming its commitment to developing resilient, innovation-driven infrastructure within the country.
Through this collaboration, DNeX and Google Cloud aim to empower Malaysia’s public and private sectors with state-of-the-art cloud infrastructure and AI tools, enabling them to meet evolving regulatory and technological needs.