Google unveils USD $15 billion Malaysia digital push

Google has announced a USD $15 billion investment in digital infrastructure in Malaysia over the next two years, extending its presence in the country after more than 15 years of operations.

The investment will fund data centre campuses in Selangor and Negeri Sembilan, workforce training, water replenishment projects and clean energy additions to the national grid. Google's first Malaysian data centre campus, in Elmina Business Park in Selangor, is already operational, with further campuses planned in Selangor and Negeri Sembilan.

Google expects the construction phase, from 2027 to 2028, to contribute an average of USD $1.1 billion a year to Malaysia's GDP and support more than 37,000 local jobs annually, including about 6,000 in construction. Average annual labour income linked to the build-out is projected at USD $378 million.

Once operational, the sites are projected to support more than 9,000 local jobs a year, including on-site technical and engineering roles as well as jobs with contractors and local businesses serving workers and their families.

Ruth Porat, President and Chief Investment Officer at Alphabet and Google, said the expansion was being tied to local economic and resource planning.

"Google is committed to growing our presence responsibly, delivering lasting value for Malaysia's economy and people. This investment aligns with Malaysia's development priorities-providing the foundational computing capacity to deliver the upside of innovation across the country while adding local power and water resources as our operations scale. At the community level, Google is proud to partner with local suppliers to expand their expertise and to equip workers, students, and entrepreneurs with in-demand skills, enabling Malaysians to capture the new opportunities unlocked by this computing capacity," Porat said.

More than 80 Malaysian entities are involved in the domestic supply chain for development and operations, spanning construction and civil engineering, network infrastructure, power and cooling systems, and services including logistics, legal work, catering and waste management.

Skills push

Alongside direct hiring, Google will launch four programmes intended to help upskill about 800,000 Malaysians by 2031. They target educators and school pupils, microentrepreneurs, civil servants and vocational jobseekers, starting in the states where the campuses are located.

One programme, Experience AI Malaysia, is being developed with the Ministry of Education, Penang Science Cluster and the Raspberry Pi Foundation to support AI teaching for pupils aged 11 to 14. Another, Jelajah AI MSME, is being run with Pepper Labs to help small businesses build online business profiles and digital storefronts.

A third programme, Anjakan Kemahiran AI Demi Rakyat, is being developed with Arus Academy for council officers and constituency members in 19 local councils in Selangor and Negeri Sembilan. Google also plans to establish Data Centre Institutes in selected polytechnics in the two states, with a 10-week curriculum designed to train and place technical and vocational candidates in data centre roles.

YB Gobind Singh Deo, Minister of Digital, linked the announcement to Malaysia's wider economic strategy.

"Google's comprehensive blueprint sets a high standard for sustainable, high-impact digital infrastructure development in Malaysia. Guided by the Malaysia MADANI framework and the Malaysia Digital 2030 Action Plan, our goal is to cultivate an ecosystem that strengthens Malaysia's technological capabilities, protects public resources, and empowers our people. Through its commitment to clean energy and water resilience, alongside deep partnerships with Malaysian institutions and enterprises, Google is helping to anchor a high-value digital economy where local businesses, workers, and communities directly benefit from the transformative potential of AI and digital innovation," Deo said.

Water and power

Water use is a central issue for data centre operators, particularly in tropical markets, where cooling systems can place added pressure on local supplies. Google said it used a water-risk framework to assess watershed health in Selangor and Negeri Sembilan before deciding to use water cooling at its campuses.

It is working with the Global Environment Centre and Petaling Jaya City Council on measures at Taman Aman Lake to improve water quality. Google also announced two additional water replenishment efforts: work in the Sungai Buloh and Sungai Selangor river basins, and school-based water resilience centres at four schools in Selangor equipped with storage tanks, rainwater harvesting systems and self-closing taps.

The school systems will provide at least two weeks of emergency water capacity for up to 2,000 community members during supply disruptions. Water replenishment from the projects will be measured using the Volumetric Water Benefit Accounting methodology and audited by third-party hydrologists.

On energy, Google plans to bring more than 1GW of new clean energy capacity to Malaysia's national grid. The work is anchored by a collaboration with Tenaga Nasional Berhad under the Corporate Renewable Energy Supply Scheme. The company will also explore round-the-clock clean energy projects to address the intermittent nature of solar generation.

Google will pay for all the power used by its data centre campuses and the direct infrastructure costs needed to connect them to the grid. Future community-based initiatives in Malaysia will also include programmes aimed at lowering household electricity bills in the states hosting its infrastructure.

Its data centres in warmer climates such as Malaysia operate at a Power Usage Effectiveness of 1.12 to 1.14, compared with an industry average of 1.54.