Key Takeaways
- • Google plans to invest $15 billion in Malaysian digital infrastructure over the next two years, according to Mingtiandi, as its first Malaysian data centre at Elmina Business Park in Selangor enters operation.
- • The 2027-28 spending programme builds on a $2 billion commitment announced in May 2024 and adds new campuses in Selangor and Negeri Sembilan; Google has not disclosed the planned campuses' IT capacities.
- • Google will enable more than 1GW of new clean energy generation on Malaysia's national grid and pay the direct infrastructure costs of connecting its campuses to the electricity network.
- • Google announced $160 million in funding for shared water infrastructure in Negeri Sembilan, where Gamuda is building a reservoir and a 65 million-litre-per-day water treatment plant.
- • Competing operators are expanding around Kuala Lumpur, including DayOne and Bain Capital-backed Bridge Data Centres, while Malaysia has introduced data centre power tariffs and limits on non-AI development.
Summary
Google plans to invest $15 billion in Malaysian digital infrastructure over the next two years, expanding its data centre footprint as its first campus in Southeast Asia's Malaysia enters operation. The US technology company announced the 2027-28 spending programme on Wednesday. Alongside its now-operational facility at Elmina Business Park northwest of Kuala Lumpur, new campuses are planned in Selangor and Negeri Sembilan. Ruth Porat, president and chief investment officer of Google and Alphabet, said the investment "aligns with Malaysia's development priorities" and provides foundational computing capacity while adding local power and water resources as operations scale.
The programme expands on a $2 billion investment announced in May 2024, which included the Elmina campus and cloud region and AI literacy programmes for students and educators. Google's Malaysian cloud region remains upcoming, supported by computing capacity in Selangor. Sime Darby Property had announced additional facilities for Google in December 2024, with construction targeted for completion in 2027, under a build-and-lease agreement for a 20-year tenancy valued at up to MYR 5.6 billion ($1.2 billion at the time). Google later extended south of Kuala Lumpur, with affiliate Pearl Computing Malaysia buying a 389-acre (157-hectare) site in Port Dickson from developer Gamuda for $105 million. Google confirmed its Negeri Sembilan campus is at Springhill Industrial Park in Port Dickson.
The power commitments include more than 1GW of new clean energy generation on Malaysia's national grid, with Google paying the direct infrastructure costs of connecting its campuses to the network. These follow Google's earlier announcement of $160 million for shared water infrastructure in Negeri Sembilan. Gamuda will build an off-river storage reservoir and a water treatment plant designed to supply 65 million litres (17 million gallons) of potable water daily, in coordination with the state government and utility SAINS. The completed facilities will be owned by statutory body MBINS.
Competitors are also expanding. Singapore's DayOne Data Centers agreed in August to buy 78.8 acres in Selangor from Mah Sing Group for $153 million. Bain Capital-backed Bridge Data Centres has a flagship campus planned for up to 1 gigawatt in the Kuala Lumpur area, according to chief investment officer Kevin Guan. Johor remains the largest growth engine, with operational capacity rising 24 percent in the first half to 1,110 megawatts and vacancy tightening to 0.7 percent, according to Cushman & Wakefield figures.
Resource demands are drawing scrutiny across the region. According to Goldman Sachs research, Malaysia has introduced data centre power tariffs and limits on non-AI development, while Thailand advanced a proposed framework requiring developers to compete for electricity and water allocations through government-run pitching rounds.
The programme expands on a $2 billion investment announced in May 2024, which included the Elmina campus and cloud region and AI literacy programmes for students and educators. Google's Malaysian cloud region remains upcoming, supported by computing capacity in Selangor. Sime Darby Property had announced additional facilities for Google in December 2024, with construction targeted for completion in 2027, under a build-and-lease agreement for a 20-year tenancy valued at up to MYR 5.6 billion ($1.2 billion at the time). Google later extended south of Kuala Lumpur, with affiliate Pearl Computing Malaysia buying a 389-acre (157-hectare) site in Port Dickson from developer Gamuda for $105 million. Google confirmed its Negeri Sembilan campus is at Springhill Industrial Park in Port Dickson.
The power commitments include more than 1GW of new clean energy generation on Malaysia's national grid, with Google paying the direct infrastructure costs of connecting its campuses to the network. These follow Google's earlier announcement of $160 million for shared water infrastructure in Negeri Sembilan. Gamuda will build an off-river storage reservoir and a water treatment plant designed to supply 65 million litres (17 million gallons) of potable water daily, in coordination with the state government and utility SAINS. The completed facilities will be owned by statutory body MBINS.
Competitors are also expanding. Singapore's DayOne Data Centers agreed in August to buy 78.8 acres in Selangor from Mah Sing Group for $153 million. Bain Capital-backed Bridge Data Centres has a flagship campus planned for up to 1 gigawatt in the Kuala Lumpur area, according to chief investment officer Kevin Guan. Johor remains the largest growth engine, with operational capacity rising 24 percent in the first half to 1,110 megawatts and vacancy tightening to 0.7 percent, according to Cushman & Wakefield figures.
Resource demands are drawing scrutiny across the region. According to Goldman Sachs research, Malaysia has introduced data centre power tariffs and limits on non-AI development, while Thailand advanced a proposed framework requiring developers to compete for electricity and water allocations through government-run pitching rounds.
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