Google's US$15 Bln Investment To Contribute US$1.1 Bln Annually To GDP During Construction
KUALA LUMPUR, Nov 4 (Bernama) -- Google's planned US$15 billion (US1= RM4.07) investment in Malaysia over the next two years is expected to contribute an average of US$1.1 billion annually to the country's gross domestic product (GDP) during the construction phase, while supporting over 37,000 local jobs annually.
Alphabet and Google president and chief investment officer Ruth Porat said the investment, covering 2027 and 2028, would expand the company's digital infrastructure through new data centre campuses in Selangor and Negeri Sembilan.
The expansion builds on Google's first data centre campus at Elmina Business Park in Selangor, which is now fully operational.
"I am so pleased to build on that work and announce a US$15 billion investment in Malaysia.
"We are very excited about expanding our digital infrastructure here responsibly, investing in resource stewardship and clean energy initiatives, as well as new skilling programmes in order to open pathways to economic opportunity for Malaysians across the country," she said.
Porat said this during the Mantap Malaysia Bersama AI event held in the presence of Prime Minister Datuk Seri Anwar Ibrahim here today.
She noted that the construction phase was also expected to generate an average annual labour income of US$378 million, while supporting 6,000 jobs in the construction sector.
Upon becoming operational, the facilities are projected to sustain more than 9,000 local jobs annually, with average wages 45 per cent above the national median.
These include specialist positions such as data centre technicians, mechanical and electrical engineers, logistics operations managers and physical security managers.
Google is also working with more than 80 Malaysian entities across construction, civil engineering, network infrastructure, power and cooling systems, logistics and other supporting services to develop and operate its infrastructure.
The collaboration is expected to enable domestic suppliers to enhance their capabilities and move up the value chain both locally and internationally.
Porat said the company's computing infrastructure would also support its upcoming Google Cloud region in Malaysia, providing enterprise customers with the capacity to develop and scale advanced digital and artificial intelligence (AI) applications.
Among the organisations using Google Cloud capabilities are the Ministry of Higher Education, Bank Muamalat Malaysia Bhd, AirAsia, Gamuda Bhd and Hong Leong Bank Bhd.
On talent development, she said Google would provide funding for four new programmes aimed at upskilling 800,000 Malaysians by 2031, focusing on educators and youth, microentrepreneurs, civil servants and vocational jobseekers.
The initiatives include advancing AI literacy in classrooms nationwide, helping local businesses reach more customers through digital platforms, equipping local government officers with AI skills and productivity tools and preparing jobseekers for on-site data centre roles.
Google also plans to establish Data Center Institutes at selected polytechnics in Selangor and Negeri Sembilan from 2027, offering a 10-week industry-led training programme to prepare local talent for data centre deployment and operations.
On energy, Porat said Google planned to add more than one gigawatt (GW) of clean energy capacity to Malaysia's national grid, alongside initiatives to strengthen grid resilience and safeguard electricity affordability.
Anchored by a collaboration with Tenaga Nasional Bhd, the initiative would facilitate the development of new clean energy generation facilities under Malaysia's Corporate Renewable Energy Supply Scheme.
The collaboration would also explore round-the-clock clean energy projects to ensure reliable electricity supply despite the intermittent nature of renewable energy sources such as solar.
Porat said Google would pay for 100 per cent of the electricity consumed by its data centre campuses and the direct infrastructure costs required to connect them to the grid, in compliance with applicable local regulations.
The company also plans to invest in community-based initiatives from 2027 to strengthen grid resilience and help reduce electricity bills for households in states hosting its infrastructure.
On water sustainability, Google is expanding its collaboration with the Global Environment Centre to implement nature-based solutions in the Sungai Buloh and Sungai Selangor river basins, including constructed wetlands, riverbank bioengineering and pollution monitoring to improve raw water quality and strengthen water security.
It is also working with partners to establish water resilience facilities at four schools in Selangor, equipped with rainwater harvesting systems and 20,000-litre storage tanks. Each school will have sufficient emergency water capacity to serve up to 2,000 community members for at least two weeks during unscheduled water supply disruptions.
Porat said Google's approach to infrastructure expansion was guided by responsible execution and investment in additional resources alongside the growth of its digital operations.
"We call this BYOP: Bring Your Own Power," she said, referring to Google's approach of investing in additional energy capacity alongside its infrastructure expansion.
She also highlighted the potential of AI in advancing scientific research, citing Malaysian researchers who are using Google's AlphaFold technology to better understand the bacterium that causes melioidosis, an infectious disease, and accelerate research into effective treatments and vaccines.
AlphaFold, which predicts the three-dimensional structure of proteins, is now used by more than three million researchers in 190 countries, including 85,000 researchers across Southeast Asia, she added.
-- BERNAMA