Dagang NeXchange Berhad (DNeX) and Google Cloud have signed a deal to deliver sovereign cloud services to Malaysia.

DNeX will operate the Google Distributed Cloud (GDC) offering as a managed GDC provider, bringing a sovereign cloud offering to the country.

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Google Distributed Cloud consists of hardware and software designed to extend Google’s infrastructure both to the Edge and into on-premise data centers. The company launched an air-gapped version of GDC earlier this year, that runs Google's cloud infrastructure stack including Kubernetes clusters, data security services, and the Vertex AI platform that can be used even when access to the Internet is not possible.

DNeX will offer options for GDC air-gapped on-premises, or within partner data centers, as well as with flexible hardware options to include CPUs or GPUs depending on an organization's need.

Karan Bajwa, vice president for Asia Pacific at Google Cloud, said: “Malaysia’s public sector and regulated industries require cloud capabilities that guarantee digital sovereignty while adhering to stringent regulatory standards, and we’re pleased to be addressing this need by partnering with DNeX to deliver GDC air-gapped for local organizations.

"Google Cloud and DNeX will empower organizations with the state-of-the-art distributed cloud infrastructure, developer tools, and AI services they need to drive digital transformation on their own terms." Bajwa added that the partnership would bring AI to sectors such as semiconductor manufacturing.

Via GDC, DNeX will also give organizations access to Vertex AI to develop and deploy machine learning and AI applications.

Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail, executive chairman of DNeX, said: “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."

He added: "This unique solution will unlock possibilities for secure and transformative innovation, such as the use of AI and advanced analytics in delivering integrated, citizen-centric digital government services; advancing treatments for chronic health conditions; and optimizing energy production in hydro or solar power plants. This will also expand DNeX’s services offerings in our IT business segment to include hosting services."

The two companies are further looking into developing an AI Center of Excellence.

Google has previously shared plans to develop a data center and cloud region in Malaysia, and in May 2024 committed to investing $2 billion in the country.

DNeX is a global technology company with three business divisions - technology, energy, and information technology. In 2022, Foxconn and DNeX were teaming up on a chip fabrication plant in Malaysia.

The first version of Google's Distributed Cloud offering was announced in October 2021.

Customers of GDC include Orange, and McDonald's, while Clarence - a JV between Proximus and LuxConnect and Gulf Edge, are managed GDC providers.