The digital technology sector in ASEAN is bustling following Google’s announcement to develop digital infrastructure in Malaysia. The company plans to inject a massive investment exceeding 15 billion US dollars, approximately 500 billion baht, over the next two years (2027-2028), announced in the presence of Malaysian Prime Minister Anwar Ibrahim.
Google’s investment plan in Malaysia includes building an energy-efficient Data Center in an industrial zone, aiming to upskill 800,000 Malaysians in digital skills by 2031. It also involves supporting local water security and increasing clean energy capacity by more than 1 gigawatt (GW) into Malaysia’s national power grid.
Google has operated in Malaysia for over 15 years. Currently, Malaysia is one of the fastest-growing and most dynamic digital economies in Southeast Asia, boasting 99% internet penetration and rapid AI adoption across government agencies, businesses, and consumers.
This huge capital inflow into Malaysia’s economy is expected by Google to boost Malaysia’s GDP by an average of 1.1 billion dollars per year during 2027-2028. It will support over 37,000 jobs annually. Once construction is complete and operations fully underway, it is projected to sustain more than 9,000 jobs per year, with wages averaging 45% higher than the national average. These jobs range from specialist roles such as engineers and Data Center technicians to local contractors.
Beyond direct employment, Google has announced four new programs to upskill and develop digital talents for 800,000 Malaysians over the next five years (2027-2031), including:
Regarding environmental responsibility, Google emphasized conducting risk assessments before using water-cooling systems in Data Centers. It also launched two environmental projects: protecting the Sungai Buloh and Sungai Selangor river basins, and installing rainwater harvesting systems in four state schools in Selangor to ensure emergency water supply and reduce operating costs.
Additionally, Google plans to support over 1 gigawatt (GW) of clean energy into the national power grid and will fully cover electricity costs used by the Data Center. Investments will also be made in community projects to help reduce electricity bills for households in states hosting the company’s infrastructure starting in 2027.
Malaysian Prime Minister Anwar Ibrahim emphasized that Google’s investment in digital infrastructure aligns with the national economic policy framework. The government’s main policy is to attract global investment in Data Centers and AI technology to position Malaysia as Southeast Asia’s digital economy leader, boosting economic growth and setting clear standards for investors.
Ruth Porat, Chief Investment Officer of Alphabet and Google, said this investment aligns with Malaysia’s national development priorities. Google is proud to partner with local suppliers to equip workers, students, and entrepreneurs with skills to seize these new opportunities.
Malaysia’s Minister of Digital Gobind Singh Deo praised Google’s master plan as setting very high standards for sustainable infrastructure development. He said it will strengthen technological resilience, protect resources, and harness AI’s full potential to directly benefit the Malaysian people.