Google to Invest $15 Billion in Malaysia Data Center Expansion

Google announced on Wednesday, November 4, 2026, a US$15 billion investment to expand its data center operations in Malaysia over the next two years, from 2027 to 2028. The commitment more than triples its previous US$2 billion investment announced in May 2024 and positions Malaysia as a central hub for the company’s artificial intelligence infrastructure in Southeast Asia.

Google Expands Data Centers in Selangor and Negeri Sembilan

The investment will fund the development of new data center campuses in the Malaysian states of Selangor and Negeri Sembilan, adding to Google’s existing operational facility at Elmina Business Park in Selangor. These new facilities are projected to have a significant economic impact. The projects are anticipated to deliver an annual average of US$1.1 billion to Malaysia’s gross domestic product and provide support for over 37,000 local jobs annually during the construction phase. Of these, around 6,000 are expected to fall within the construction sector. Once operational, the campuses will maintain more than 9,000 permanent local jobs, with wages averaging 45 percent above the national median.

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Google’s president and chief investment officer, Ruth Porat, stated that the investment reflects our confidence in the strength of Malaysia’s leadership, its skilled workforce, and enthusiasm for digital transformation. She emphasized that the plan goes beyond computing capacity, also focusing on providing the foundational computing capacity to deliver the upside of innovation across the country while adding local power and water resources as our operations scale. The announcement was made at an event attended by Malaysian Prime Minister Anwar Ibrahim at the University Malaya.

Sustainability Commitments and Community Impact

A key component of Google’s plan is its commitment to sustainability. The company pledged to add more than one gigawatt of clean energy capacity to Malaysia’s national grid through collaboration with Tenaga Nasional Berhad. Google has committed to covering the full cost for the electricity consumed by its data center campuses and the direct infrastructure expenses required to connect the facilities to the grid, while adhering to local regulations. This multi-decade commitment covers both the construction phase and the operational lifetime of its campus.

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In terms of power consumption, Google states its campuses can achieve a Power Usage Effectiveness of 1.12 to 1.14 in tropical climates like Malaysia’s, in contrast to an industry average of 1.54. On the water front, Google announced a US$160 million investment in shared water infrastructure in Negeri Sembilan. This project involves constructing an off-river storage reservoir and a water treatment plant along the Linggi River, engineered to supply 65 million liters of potable water daily for both the planned data center and the local community.

Malaysia has the stability, talent and ambition to become a leading digital powerhouse in Southeast Asia.

Google to Invest $15 Billion in Malaysia Data Center Expansion
Photo: Yahoo News Singapore

Malaysia Leads Southeast Asia’s Data Center Growth

The expansion comes as Malaysia solidifies its position as Southeast Asia’s fastest-growing hub for data centers. The country currently accounts for more than 60 percent of all data centers in the region, with over 100 projects approved to date. As of July 2026, Malaysia’s Ministry of Digital reported that the country had approved 27 data center projects with a total expected investment of about 225.97 billion ringgit (about US$55.4 billion). Most of these are located in the southern state of Johor and the Klang Valley.

The International Monetary Fund forecasts Malaysia’s economy will grow by 5.2 percent in 2026, with data center activity being a significant contributing factor. However, the government is also mindful of future challenges, with projections suggesting that data centers could consume one-third of the nation’s total energy by 2035. In 2027, Google intends to invest in new community-based initiatives in Malaysia that further reinforce grid resilience and protect energy affordability, including programs that reduce electricity bills for households in the states hosting its infrastructure.

The company’s plan also includes data center locations in Selangor—Elmina, Puncak Alam, and Serendah. The Negeri Sembilan campus in Port Dickson is projected to generate more than US$3.2 billion in economic benefits by 2030, underscoring the broad economic impact of Google’s long-term commitment to the country. Google’s computing infrastructure in Selangor will also enable its new Google Cloud region in Malaysia, serving enterprise clients.

On energy, Google’s partners include Solarvest Holdings Berhad, which is supporting Google’s renewable energy strategy through a corporate green power agreement. This project will contribute additional renewable energy to Malaysia while supporting Google’s data center operations, said Dato’ Davis Chong, Executive Director and Group Chief Executive Officer, Solarvest Holdings Berhad.

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Dato’ Haji Najmuddin Sharif bin Sarimon, Chief Executive Officer, Invest Negeri Sembilan, said: Google’s planned data center campus demonstrates how private investment and public interests can be aligned from the outset to deliver sustainable, long-term benefits for the state and its people. Drew Byrnes, Director and Head of Global Infrastructure and Energy, Asia Pacific, Google, said: This underscores our responsibility to grow our presence sustainably—pairing advanced digital infrastructure development with water replenishment projects, power infrastructure enhancements, and programs designed to upskill local talent for new career opportunities. The ability to simultaneously develop both the upcoming off-river storage reservoir and water treatment plant along the Linggi River and the Google data center campus in Springhill Industrial Park reflects our integrated, top-toe model, said Justin Chin, Managing Director, Gamuda Engineering.