Google invests USD $2 billion in first Malaysian data centre

Google has initiated the construction of its inaugural data centre and cloud region in Malaysia, marking a significant development in Elmina Business Park, Selangor. The US-based technology giant's investment of USD $2 billion aims to bolster Google's cloud capabilities, as well as artificial intelligence innovations and other digital services in the region. The economic impact of this development is projected to exceed USD $3.2 billion and generate roughly 26,500 jobs by the end of this decade.

The groundbreaking event coincided with Google's "Mantap Malaysia Bersama AI" event, part of their Google for Malaysia series. The developments come in tandem with Google Cloud's 2022 announcement of plans to establish a local cloud region, enhancing service speed and accessibility for enterprises in Malaysia. The envisaged cloud region is expected to offer high performance and low-latency services, coupled with stringent data security and compliance controls.

Prime Minister Dato' Seri Anwar Ibrahim, who attended the event, acknowledged Google's investment. He said, "We laud Google's swiftness in establishing its data centre and cloud region in Malaysia. These state-of-the-art facilities will not only empower our manufacturing and service-based industries—particularly small and medium businesses—to leverage advanced technologies like AI and cloud computing, but also enhance our industries' capacity to move up the global value chain."

Google's President and Chief Investment Officer, Ruth Porat, reiterated the company's dedication to Malaysia's digital transformation. "Today, Google reaffirms its support for advancing Malaysia's digital future with the groundbreaking of our data centre and cloud region in Selangor," she stated. Google's investment strategy in Malaysia also encompasses digital skilling and sustainability initiatives, developed in concert with the Malaysian government.

From an environmental standpoint, Google's new data centre will utilise innovative water-cooling technology that consumes approximately 10% less energy than traditional air-cooled facilities, reducing carbon emissions by a similar margin. The company is partnering with the Global Environment Centre and Petaling Jaya City Council to revitalize Taman Aman Lake in Selangor, thereby improving local ecosystem health and biodiversity.

Google's technological advancements also include expanding their Solar API service to Malaysia. By leveraging AI and satellite imagery, this service facilitates the design and implementation of solar energy solutions. This initiative is expected to drive solar adoption and create new job opportunities within Malaysia's renewable energy sector.

Google's commitment to developing digital skills in Malaysia remains steadfast, with over 355,000 Malaysians having already benefited from Google's training initiatives over the last five years. Moving forward, Google has pledged to work with UNICEF Malaysia, CelcomDigi, Malaysia Digital Economy Corporation, and Arus Academy. These collaborations aim to provide future-skills training to educators and students, particularly those from diverse backgrounds in Selangor.

The comprehensive nature of Google's investment reflects a strategic plan to support Malaysia's digital economy, foster innovation, and promote environmental sustainability. The collaborative efforts between Google, Malaysian government bodies, and local organisations underscore the potential for significant advancements in Malaysia's technology landscape.