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Google commits $15 billion to expand its Malaysia data center footprint

Google commits $15 billion to expand its Malaysia data center footprint

Google / Wikimedia Commons (Public domain)

The pledge builds on a Selangor cloud region, a Port Dickson campus and a water project as Southeast Asia's demand for AI compute climbs

Google will invest $15 billion to expand its data centers in Malaysia. That is a big number for a country that, until recently, had no Google data center at all.

From $2 billion to $15 billion

The scale-up is easier to appreciate with the starting point in view. On May 30, 2024, Google pledged $2 billion to build its first Malaysian data center and Google Cloud region at Elmina Business Park in Selangor.

Crews broke ground on that site in October 2024. The first phase is designed to deliver 100 MW of power, and completion is anticipated in 2026.

Google’s plans now stretch well beyond Elmina. The company intends to develop two more campuses in Selangor, at Puncak Alam and Serendah.

Together with the original site, those locations are meant to form a “strategic triangle.” The idea is resilience: if one site has a bad day, the others keep services running.

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Port Dickson and the water question

The biggest single piece of the puzzle may be in Negeri Sembilan. Google’s planned Port Dickson campus sits on a 389-acre site, with capacity estimates ranging from 500 MW to 1 GW.

Big data centers are thirsty, and Google appears to know that local communities have noticed. The company has committed $160 million to shared water infrastructure in Negeri Sembilan.

The project includes an off-river storage reservoir and a water treatment plant. That plant is slated to provide 65 million liters of potable water daily.

The water is intended for both the Port Dickson campus and the surrounding community.

Engineering and infrastructure work at Port Dickson has been contracted to Gamuda Berhad, the Malaysian construction group. The broader hyperscale initiative there is projected to generate more than $3.2 billion in economic benefits by 2030.

Powering it with the sun, on paper at least

Electricity is the other obvious pressure point. Google has signed multiple long-term solar power purchase agreements in Malaysia aimed at providing 100% coverage of its electricity costs.

The investments also line up neatly with Malaysian government policy. Google’s buildout aligns with the country’s Cloud First Policy and its New Industrial Master Plan 2030, both of which push for digital infrastructure and higher-value industry.

What this means

For Malaysia, the headline benefit is economic. Google has framed its presence around job creation, training programs and infrastructure upgrades, and the Port Dickson project alone carries a projected impact above $3.2 billion by 2030.

Local contractors stand to gain as well. Gamuda’s role at Port Dickson shows that a meaningful share of the construction spending can flow to domestic firms rather than leaving the country.

Things to watch include whether the first 100 MW Selangor phase finishes on its 2026 timeline, how quickly Puncak Alam and Serendah move from plans to construction, and where Port Dickson ultimately lands within its 500 MW to 1 GW estimate.

Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.