Kuala Lumpur:Google has announced a substantial investment plan in Malaysia, committing $15 billion to establish an artificial intelligence (AI) data center. This initiative is expected to create over 37,000 jobs and enhance clean energy and water resource management.
According to Thai News Agency, the investment, equivalent to approximately 500 billion baht, will be rolled out over the next two years, between 2027 and 2028. The plan aims to expand digital and AI infrastructure to meet the rising technology demands in Southeast Asia.
The announcement was made in the presence of Malaysian Prime Minister Anwar Ibrahim and includes the development of new data centers in Selangor and Negeri Sembilan. Additionally, Google will expand its existing data center at Elmina Business Park. During the construction phase, the project is expected to contribute an average of $1.1 billion annually to Malaysia's economy and support over 37,000 local jobs per year. Once operational, the data center is projected to generate over 9,000 local jobs annually.
Furthermore, Google intends to advance AI and digital skills for around 800,000 Malaysians by 2031. This initiative targets various groups, including teachers, students, small business owners, civil servants, and skilled workers, aiming to enhance job opportunities and support the digital economy's future.
In the energy sector, Google plans to add over 1 gigawatt of clean energy to Malaysia's national electricity grid. The company has committed to covering 100% of the electricity costs for its data centers, including infrastructure costs for grid connection. Additionally, Google plans to collaborate with environmental organizations and local agencies to improve water quality in major river basins and install rainwater harvesting systems and water tanks in four schools.
Ruth Porat, President and Chief Investment Officer of Alphabet and Google, emphasized that this investment extends beyond technological business expansion. It aims to deliver long-term benefits to the Malaysian economy and people, including job creation, skills development, clean energy, and water security.
Malaysian Prime Minister Anwar Ibrahim highlighted the importance of foreign investment for Malaysia's economic growth. He noted that such investments contribute to infrastructure development, boost confidence, and align with Malaysia's goal of becoming a digital and AI hub in Southeast Asia. He stressed the need for investment to support long-term national development goals that benefit the people, local businesses, and the broader economy.
Anwar outlined three key focus areas for maximizing the benefits of foreign direct investment developing globally competitive industries, inclusive human capital development, and responsible energy and natural resource management. Google's investment presents a significant opportunity to support this approach, fostering economic activity during the construction phase and equipping Malaysian personnel with specialized skills once the project is operational.
Reporters indicate that competition to attract data center and AI investments in ASEAN is intensifying, with Malaysia positioning itself as a new digital infrastructure hub for the region. The country is not only competing on investment capital but also focusing on clean energy, skilled labor, and the readiness of public utilities.