Google breaks ground on first data centre in Malaysia

Google has officially broken ground on its first hyperscale data centre in Malaysia, located at Elmina Business Park, Selangor. The state-of-the-art facility, designed and built by Sime Darby Property, represents a significant milestone in the nation’s digital transformation journey. This development is part of Google’s broader plans to enhance Malaysia’s digital competitiveness. The company estimates that its investments in Malaysia will contribute over US$3.2 billion in positive economic impact by 2030 and create 26,500 jobs, reflecting its long-term commitment to the country.

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 groundbreaking of our data centre 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.”

Boosting AI and Cloud Infrastructure

Google’s data centre and cloud region are set to play a pivotal role in meeting the growing demand for cloud capabilities and AI innovations. The facility will support Google’s popular digital services, including Search, Maps, and Google Workspace, while also providing local businesses with access to high-performance, low-latency cloud services. This will benefit industries such as manufacturing, services, and small and medium businesses (SMBs) that are looking to leverage AI and cloud technologies to scale operations and remain competitive in the global value chain.

Minister of Investment, Trade, and Industry Zafrul Aziz praised the move, noting that these advanced facilities will empower Malaysia’s industrial sectors. “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 the SMBs—to leverage advanced technologies such as AI and cloud computing, but also enhance our industries’ capacity to move up the global value chain.”

Commitment to Sustainability and Digital Skilling

Beyond infrastructure, Google’s commitment to sustainability and digital skilling is integral to its vision for Malaysia’s digital future. The facility will be designed with energy-efficient technologies, including water-cooling systems that reduce energy usage by 10% compared to traditional air-cooled systems, which also translates to a 10% reduction in carbon emissions. Additionally, Google will collaborate with local organizations, including the Global Environment Center and Petaling Jaya City Council, to restore Taman Aman Lake, further underlining its focus on environmental stewardship.

On the digital skills front, Google has launched several initiatives to upskill Malaysians, including programs such as Gemilang and Future Skills for All. These initiatives are designed to ensure Malaysians are equipped with the skills needed for the future digital economy. Over the past five years, Google has upskilled more than 355,000 Malaysians, with a focus on educators, students, and SMB owners.

Zafrul Aziz emphasized the importance of these initiatives for Malaysia’s workforce, stating, “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.”

Transforming Malaysia into a Digital Hub

Elmina Business Park is poised to become a central hub for Malaysia’s digital economy with this new data centre at its heart. Upon full development, the park is projected to create 35,000 job opportunities by 2035. Sime Darby Property’s venture into this new economy asset class with Google marks a significant step in transforming Greater Klang Valley into a digital innovation hub.

Dato’ Seri Azmir Merican, Group Managing Director of Sime Darby Property, emphasized the significance of this collaboration: “Sime Darby Property is proud to establish Google’s first hyperscale data centre in Malaysia at our Elmina Business Park. This venture positions the park as a top destination for global tech firms.”

With this new data centre, Malaysia joins an elite group of 11 countries where Google operates data centres. It will also complement existing Google Cloud infrastructure in Cyberjaya and Kuala Lumpur, further strengthening the country’s role as a regional hub for cloud services and digital innovation.