Malaysia is looking to position itself as an artificial intelligence hub, with plans to establish regulations to boost adoption of the technology and draw in investments to build up its digital infrastructure.

The country is setting up a national office to coordinate all AI-related initiatives and drive adoption across key sectors, Prime Minister Anwar Ibrahim said at a groundbreaking ceremony with Google for a $2 billion data center and cloud region initiative.

Over the next 12 months, the government plans to finalize an action plan for 2026-2030 and define a regulatory framework to promote the ethical and sustainable use of AI, Anwar said on Tuesday.

Malaysia's cloud policy will focus on four core areas, including using the technology to modernize government operations, streamline public services and promote economic competitiveness, he said. Data security and digital inclusivity will also be key tenets.

The country wants to position itself as "a regional champion for digital policies that are forward-looking and transformative," the prime minister said.

Investments from tech partners will play a key role in developing a strong digital infrastructure, Anwar added.

The Google data center was first announced in May. The U.S. tech giant's investment is expected to create 26,500 jobs by 2030 and contribute $3.2 billion to Malaysia's economy.