Google invests $15 billion in Malaysia data centers

Google announced plans to invest $15 billion in Malaysia over the next two years to build data centers and other infrastructure. This investment is driven by the booming demand for artificial intelligence services in the region.

Malaysia accounts for more than half of under-construction data center capacity among Southeast Asian countries, including Indonesia, Thailand, the Philippines and Vietnam. A pedestrian walks by a sign at Google headquarters on Feb. 4, 2026, in Mountain View, California, United States. (AFP/Getty Images/Justin Sullivan)

“Malaysia is one of Southeast Asia’s most dynamic digital economies, driven by 99 percent internet penetration and rapid AI adoption across government agencies, businesses, and consumers,” the US tech giant said in a statement. This latest $15 billion commitment builds on a $2 billion pledge made in 2024.

Google has committed to designing its Malaysian data center complexes with energy efficiency in mind. The company also plans to enhance regional water management and inject over one gigawatt of renewable power into the national electricity network.

“Once operational, the facilities are projected to sustain more than 9,000 local jobs per year, with wages averaging 45 percent above the national median,” it added.

The International Monetary Fund forecasts that Malaysia’s economy will grow by 5.2 percent in 2026, partly encouraged by data center activity.

By 2035, data centers are forecast to consume one-third of Malaysia’s total energy consumption, the deputy prime minister told parliament in July. The government said at that time it would only approve data center projects after ensuring sufficient energy and water supply capacity.

In October, a Finnish authority ordered work on two of Google’s data center sites in the country halted until mandatory environmental impact assessments have been completed.