Google’s US$2 billion investment in Malaysia marks a major leap in the country’s ambition to become a global hub for Artificial Intelligence (AI) and digital infrastructure.
Prime Minister Datuk Seri Anwar Ibrahim officiated the groundbreaking of the new data centre in Elmina Business Park, Selangor, during the “Mantap Malaysia Bersama AI” event, highlighting the critical role of strategic policies in advancing Malaysia’s digital economy.
The data centre is expected to generate RM13.18 billion (US$3.2 billion) in economic impact and create 26,500 jobs by 2030. It will bolster Malaysia’s AI leadership, aligned with the government’s AI Talent Roadmap (2024-2030) and the Malaysia-Artificial Intelligence Consortium (MAIC).
The MADANI Government has placed digital transformation at the core of its economic policies, such as the New Industrial Master Plan 2030. “To harness the full potential of technology for economic advancement, strategic policy interventions are essential,” said Anwar.
Google’s investment plays a pivotal role in helping Malaysia build secure digital infrastructure while driving AI development in the region.
Google’s president and CEO, Ruth Porat, emphasised, “Google’s investments in infrastructure, digital skilling and sustainability represent progress in our joint efforts with the Government of Malaysia to create high-value jobs and bring the benefits of AI to local communities and companies.”
Google’s new data centre will set a standard for water and energy efficiency. Tengku Datuk Seri Zafrul Abdul Aziz, Minister of Investment, Trade and Industry, highlighted Google’s plan to replenish 120% of the water it uses, starting with restoring the lake at Taman Aman Park in Selangor.
“We are committed to build and operate our data centres in Malaysia in the most sustainable way, protecting Malaysian resources and in partnership with Malaysia communities and organisations,” Zafrul added.
This aligns with the government’s broader goal of achieving net-zero emissions by 2050. The Corporate Renewable Energy Support Scheme (CRESS) will enable companies to source renewable energy directly from producers, further supporting Malaysia’s digital infrastructure decarbonisation efforts.
In addition to its sustainability focus, the data centre will advance Malaysia’s position in AI. The newly established National Artificial Intelligence Office will coordinate AI initiatives, while the AI Technology Action Plan (2026-2030) and a regulatory framework for ethical AI adoption will guide Malaysia’s progress.
The National Cloud Policy will enhance public service innovation, economic competitiveness, and data security. “By leveraging partnerships with industry leaders and strengthening collaboration among stakeholders, Malaysia can achieve its goals and establish itself as a leading AI-driven nation in ASEAN,” Anwar noted.
Google’s cloud technology is already transforming education in Malaysia through the Ministry of Education’s DELIMa platform, benefiting 5.5 million students and teachers. “This effort should be emulated by the whole Government machinery,” Anwar suggested, highlighting technology’s potential across various sectors.
Google’s Role in a Sustainable Digital Future
Google’s commitment to sustainability is clear, with initiatives like restoring Taman Aman Park’s lake, and improving water quality using nature-based solutions. “As we do this, Google will continue its responsible stewardship of natural resources by improving community watershed health and ecosystems in Malaysia,” said Ruth Porat.
Anwar stressed the importance of attracting investments aligned with Malaysia’s sustainability goals: “We are not just looking to attract any data centre investment — we want partners who share our values towards a sustainable future.”
With Malaysia preparing to chair ASEAN next year, the government plans to promote forward-thinking digital policies and encourage cross-border collaboration, positioning itself as a regional leader in AI and digital transformation.
