Google Breaks Ground on US$2 Billion Malaysia Data Center and Cloud Region, Announces Support for New Sustainability and Skilling Initiatives

• Investments estimated to support more than US$3.2 billion in positive economic impact and 26,500 jobs by 2030

• New local partnership on digital skilling to drive inclusive growth opportunities

• Sustainability initiatives to improve watershed health, and bolster solar energy market and jobs

Google held a ceremonial ground breaking on October 1 for its first data center and cloud region in Malaysia at its inaugural “Mantap Malaysia Bersama AI,” a Google for Malaysia event. With construction underway in Elmina Business Park, Selangor, the US$2 billion investment in its data center and cloud infrastructure will help meet growing demand for Google Cloud capabilities, AI innovations, and other digital products and services that people and organizations in Malaysia use every day. These investments are estimated to support more than US$3.2 billion in positive economic impact and create 26,500 jobs by 2030.

Google also announced a series of local digital skilling and sustainability partnerships that build on the strategic collaboration it established with the Government of Malaysia at the Asia Pacific Economic Cooperation (APEC) Leaders' Meeting in November 2023. These collaborations aim to create inclusive growth opportunities for Malaysian people and businesses by bolstering environmental sustainability and widening digital skills development.

Dato' Seri Anwar Ibrahim, Prime Minister of Malaysia, was the distinguished guest of honor at Google for Malaysia, where he was hosted by Ruth Porat, President and Chief Investment Officer of Alphabet and Google, and delivered officiating remarks. He was joined on stage by YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade, and Industry, who highlighted the significance of Google’s investment: "We laud Google's swiftness in establishing its data center and cloud region in Malaysia. These state-of-the-art facilities will not only empower our manufacturing and service-based industries—particularly the small and medium businesses (SMBs) — to leverage advanced technologies like AI and cloud computing, but also enhance our industries’ capacity to move up the global value chain. In line with Malaysia’s net-zero goals, we also welcome Google’s leadership in energy-efficient operations, which will undoubtedly set new national benchmarks in power and water usage effectiveness. But above all, this journey is about our people. It is crucial for Malaysians to be equipped with the skills required for the jobs of the future, particularly as more hi-tech and AI-focused investments flow into the country, and as we grow Malaysia’s capacity to serve the region’s digital economy. Google's continued commitment to upskilling our workforce through programs like Gemilang and Future Skills for All will also ensure a more inclusive digital future for Malaysia’s workforce.”

Ruth Porat, President and Chief Investment Officer of Alphabet and Google, said: "Today, Google reaffirms its support for advancing Malaysia’s digital future with the ground breaking of our data center and cloud region in Selangor. Google’s investments in infrastructure, digital skilling, and sustainability represent progress on our joint efforts with the Government of Malaysia to create high-value jobs and bring the benefits of AI to local communities and companies. Together, we will empower individuals and businesses in Malaysia to innovate, grow, and fully harness the potential of the digital age. As we do this, Google will continue its responsible stewardship of natural resources by improving community watershed health and ecosystems in Malaysia and helping to drive local adoption of renewable energy sources.”

Developing world-class cloud infrastructure

Google’s cloud and data center infrastructure in Malaysia will help meet growing demand for Google Cloud capabilities, AI innovations, and the company’s popular digital services—such as Search, Maps, and Google Workspace—that organizations and people in Malaysia, as well as billions of people around the world, use every day.

Today’s ground breaking follows Google Cloud’s 2022 announcement of plans to launch a local cloud region to make it easier and faster for public sector organizations, SMBs, startups, and large enterprises to benefit from Google Cloud’s on-demand compute and AI and machine learning (ML) resources. The cloud region will deliver high-performance and low-latency services and offer customers key controls that allow them to maintain the highest security, data residency, and compliance standards, including specific data storage requirements.

Earlier this week, Google Cloud also announced its partnership with Dagang NeXchange Berhad (DNeX) to offer next-generation sovereign cloud solutions in Malaysia, tailored to meet the digital sovereignty requirements of organizations in regulated industries, such as public services, healthcare, and energy.

Supporting environmental sustainability

Reducing data center emissions

Google is a pioneer in computing infrastructure, and its data centers are among the most efficient in the world. As part of its climate-conscious approach to data center cooling, Google’s facility in Malaysia will use water-cooling technology, in line with Google’s data-driven water risk framework. This technology uses about 10% less energy compared to air-cooled facilities, resulting in 10% less carbon emissions.

Improving the health of community waterways

In line with its commitment to water stewardship and keeping watersheds healthy and thriving in communities where it operates data centers, Google will collaborate with the Global Environment Centre (GEC) and the Petaling Jaya City Council (MBPJ) to restore Taman Aman Lake in Selangor and enhance the environment around it. This is Google’s first water stewardship project in Malaysia, and it will improve the lake’s water quality and biodiversity, enhancing its recreational value for the surrounding community. The project will focus on employing nature-based solutions like floating constructed wetlands and the reintroduction of local aquatic species, as well as local community engagement and education, and the promotion of sustainable waste management systems.

Expanding commercial access to solar energy

Today, Google also announced that it is expanding its Solar API service to Malaysia. This service, which utilizes AI and satellite imagery to accelerate the design and installation of rooftop solar energy solutions, will empower Malaysia to expand solar adoption and stimulate the creation of high-value jobs in the renewable energy sector. As one of the first countries to receive access to Solar API, Malaysia has incredible potential to transform its energy landscape. Early adopters of the service include the Malaysian Green Technology and Climate Change Corporation (MGTC) and Gamuda.

Fostering an AI-ready economy through digital skills development

As AI reshapes industries, equipping Malaysians with the knowledge and skills to use this technology is paramount. Google will soon mark 13 years on the ground in Malaysia; over the past five years, Google has trained more than 355,000 Malaysians, including students, educators, SMB owners, and developers, underscoring its commitment to making digital skills accessible to all.

According to a recent report, targeted digital training initiatives have the potential to add US$19 billion to Malaysia’s economy in 2030. To help ensure Malaysia can create a supportive ecosystem for innovation, unlock the potential of digital transformation, and fully capitalize on the AI opportunity, Google also announced a collaboration with UNICEF Malaysia, CelcomDigi, Malaysia Digital Economy Corporation (MDEC), and Arus Academy to bring Future Skills for All to Selangor, with the support of the Ministry of Education (MOE). This is aimed at reducing inequalities and providing opportunities by enabling future-skills learning opportunities for all, particularly children from diverse demographics. The program will train 260 teachers who will subsequently coach up to 61,000 students in Selangor.