According to some reports, Google is interested in setting up the “world’s largest data center” in Malaysia. The Prime Minister Abdullah Ahmad Badawi told journalists at the World Economic Forum in Davos that, “They want to make their presence felt in Malaysia. It will be a big boost for our ICT (information and communications technology) industry.”

However, The Register is skeptical of the perceived benefits:

Uh, well sort of. Malaysia can expect to see upwards of $600m in hardware, software and construction services roll into town, which is nice. After that, though, Google usually employs only 200 workers at its largest data centers. Double that total for the “world’s biggest” ad serving sweatshop, and you’re looking at 400 workers getting paid to plug things in and mop the floor.

Earlier reports here said that Google was considering a few countries — such as Malaysia, India, or Vietnam — to establish its new base.

Just how tangible are the benefits of having Google set up shop in the neighborhood?