Google to Invest US$15 Billion in Malaysia in Data Centers and Clean Energy

Google to Invest US$15 Billion in Malaysia in Data Centers and Clean Energy
Google Makes Major Investment in Malaysia

Malaysia is strengthening its AI agenda and digital infrastructure as Google plans to invest US$15 billion over the next two years. The commitment includes building energy-efficient data centers, developing the skills of 800,000 Malaysians, water security initiatives, and connecting 1GW of clean energy to the national grid.

Highlights

  • Google announced a US$15 billion investment to build data center campuses in Selangor and Negeri Sembilan in 2027–2028, supporting 37,000 jobs annually.
  • The new facilities are expected to contribute US$1.1 billion a year to Malaysia's GDP and offer salaries 45% above the national median for 9,000 permanent workers.
  • Google will launch four AI skills programs for 800,000 Malaysians through 2031, as well as a 1GW clean energy project through the Corporate Renewable Energy Supply Scheme.

This article was translated from the original. Read the original version by our correspondent here.

Infrastructure investment and rollout from 2027 to 2028

As reported by The Edge Malaysia, citing Google, the AI-Ready Malaysia investment package was announced on Wednesday at the University of Malaya in Kuala Lumpur, in the presence of Prime Minister Datuk Seri Anwar Ibrahim and several federal ministers. The technology company said its infrastructure in Malaysia would support the country's next phase of growth and provide world-class computing capacity for local AI and digital applications.

Google will build new campuses in Selangor and Negeri Sembilan in 2027 and 2028, which are expected to support 37,000 jobs annually, including 6,000 in construction. The construction is expected to contribute US$1.1 billion a year to Malaysia's gross domestic product and US$378 million in average annual labor income.

Google said the facilities would sustain 9,000 jobs, including data center technicians, mechanical and electrical engineers, and logistics and security managers. These roles are expected to offer salaries 45% higher than the national median, while 80 Malaysian entities have been engaged to develop and operate the infrastructure.

The new facilities add to the existing data center in Elmina Business Park, Selangor. Ruth Porat, president of Alphabet and Google and chief investment officer, said the investment aligns with Malaysia's development priorities while adding foundational computing capacity as the company's operations expand.

Impact on the workforce, water and clean energy

Google also announced four programs through 2031 to upskill 800,000 Malaysians. Experience AI Malaysia, developed in partnership with the Ministry of Education, Penang Science Cluster and Raspberry Pi Foundation, will train educators to strengthen AI literacy among students aged 11 to 14.

The MSME AI Tour program will help small businesses leverage information technology to expand their markets, while the AI Skills for the People Initiative, AKAD Rakyat, will train local authority officers to use AI to improve productivity. Selected polytechnics in Selangor and Negeri Sembilan will also host Data Centre Institutes to prepare workers for data center placements.

Beyond digital infrastructure, the company plans to restore and conserve the Sungai Buloh and Sungai Selangor rivers through nature-based solutions and community initiatives, including constructed wetlands, riverbank bioengineering and pollution monitoring. There are also plans to install rainwater harvesting systems at schools in Selangor, benefiting up to 2,000 people during water supply disruptions.

Google also plans a project to connect 1GW of clean energy to the national grid through the Corporate Renewable Energy Supply Scheme. The company said its facilities are designed to minimize electricity use, with a Power Usage Effectiveness (PUE) of between 1.12 and 1.14, below the industry average of 1.54.

In our earlier coverage of the approval of 27 data center projects under the data center task force (DCTF) through July 2026, we detailed the distribution of projects in Johor, Selangor and Negeri Sembilan, as well as their total investment value. We also highlighted the projected high-skilled job opportunities for local residents, alongside a minimum local content requirement of 30% and regular implementation monitoring.

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