General Industry Update

May was a busy month for cloud investment in Asia.

Amazon Web Services (AWS) announced a $9 billion investment in Singapore over the next five years, aiming to enhance its cloud services and infrastructure. This move underscores AWS’s belief in ASEAN region growth, which began in 2010 with its first Asia-Pacific region in Singapore. Since then, AWS has invested approximately $8 billion in Singapore, establishing robust cloud infrastructure.

Priscilla Chong, AWS Singapore’s country manager, highlighted that the new investment will bolster data centre capabilities in the Asia-Pacific Singapore region. The firm has trained more than 400,000 individuals in cloud skills in Singapore since 2017 and plans to continue investing in upskilling to boost productivity.

This investment is part of AWS’ ongoing expansion in Southeast Asia. In October 2022, AWS unveiled a $5 billion cloud facility investment in Thailand over 15 years. Additionally, it launched a region in Jakarta in December 2021 and committed at least $6 billion to develop a new region in Malaysia by 2037.¹

At the same time, Google will invest $2 billion in Malaysia, marking its largest commitment to the country. This investment includes the development of Google’s first data centre and a cloud facility in Malaysia. The new infrastructure, located at Sime Darby Property’s Elmina Business Park in Selangor, is expected to create 26,500 jobs across various sectors, with an overall economic impact estimated at $3.2 billion, according to Malaysia’s trade ministry.

This move comes as part of an intense competition between Google and Microsoft for dominance in artificial intelligence services. Microsoft CEO Satya Nadella recently announced a $2.2 billion investment in Malaysia, complementing similar commitments in Indonesia and Thailand.

Beyond cloud services, Google plans to enhance AI literacy through educational programs for students and teachers, reinforcing its strategic focus on expanding AI capabilities and workforce development in the region.²

Company Specific Updates

Microsoft Corp

Microsoft is enhancing its AI infrastructure with an integrated systems approach combining hardware and software. At its annual Build developer conference, Microsoft announced plans to introduce a platform of AMD artificial intelligence chips for its cloud computing customers, challenging Nvidia’s dominance.

Clusters of AMD’s MI300X AI chips will be available through Microsoft’s Azure cloud service, offering an alternative to Nvidia’s H100 GPUs, which face high demand.

It is the first cloud provider to offer AMD’s MI300X AI accelerator chip, powering the Azure ND MI300X v5 virtual machine series, optimized for intensive AI and high-performance computing tasks like those required by Azure OpenAI Service. AMD expects $4 billion in AI chip revenue this year, underscoring the chips’ ability to train and run large AI models.³

Additionally, Microsoft also previewed its new Cobalt 100 Arm-based virtual machines (VMs) following the introduction of the custom-designed Cobalt 100 compute processor. Announced in November 2023, these VMs leverage Arm architecture for improved efficiency and performance. The Cobalt 100 VMs deliver up to 40% better performance than Azure VMs, making them ideal for general-purpose and cloud-native workloads.⁴

Alphabet Inc

According to analysis by Bloomberg Intelligence, Google Cloud is poised for a significant boost in sales from generative AI workloads. This boost could add at least $2 billion in 2025, which could accelerate profitability faster than anticipated.

According to this analysis, the company is strategically leveraging its Nvidia GPU allocation more effectively than competitors like Meta and Despite having only half the GPU allocation of some hyperscalers, Google Cloud’s internal GPU usage for training and inferencing is minimal, allowing more capacity for enterprise customers.

Currently, Google Cloud is on an annual sales run rate of $35 billion, with AI workloads expected to contribute an additional 400-500 basis points of growth in 2025. This projection excludes potential revenues from Duet AI copilot and Gemini licensing.

Google Cloud’s profitability is expected to climb, driven by the higher incremental margins of generative AI workloads. Operating profits are forecasted to reach $3.2 billion in 2024, a significant turnaround from the $3 billion annual losses in 2021 and 2022.

Google’s TPU-chip architecture gives it a competitive edge, enabling it to capture a larger share of gen-AI workloads. The company is well-positioned to narrow the gap with Amazon AWS and Microsoft Azure by offering a comprehensive suite of products for training LLMs.⁵

Investing in Cloud Computing with DATA ETF

If you’re interested in investing in a cloud computing ETF, consider the Evolve Cloud Computing Index Fund (DATA ETF), Canada’s first cloud computing ETF. DATA ETF invests primarily in equity securities of companies located domestically or internationally that have business operations in the field of cloud computing. To learn more about DATA ETF, please click here:

Portfolio Strategy and Activity

For the month, Microsoft Corp made the largest contribution to the Fund, followed by Alphabet Inc and MicroStrategy Incorporated. The largest detractors to performance for the month were Salesforce Inc, followed by Intuit Inc and MongoDB Inc.



  1. Chiang, S., “Amazon’s AWS to double down on Singapore with additional $9 billion cloud investment,” CNBC, May 7, 2024;
  2. Anand, R., “Google to Invest $2 Billion in Malaysia, Build Data Center,” Bloomberg, May 29, 2024;
  3. Cherney, M.A., “Microsoft offers cloud customers AMD alternative to Nvidia AI processors,” Reuters, May 17, 2024;
  4. Shaw, F.X., “What’s next: Microsoft Build continues the evolution and expansion of AI tools for developers,” Microsoft, May 21, 2024;
  5. Singh, M. & Chintala, N., “Google Cloud leveraging Nvidia could bring $2 billion sales bump,” Bloomberg, May 2, 2024;

Header image source: Getty Images, Credit: Jian Fan

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