Construction of Google data centre will bring RM13.3bil to M’sia’s economy by 2030
KUALA LUMPUR: The construction of the Google data centre, along with other investments, is anticipated to create over 64,000 high-value jobs locally.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz (pic) noted that globally, data centres typically generate four to six additional jobs for each direct role, although this multiplier can vary by region and sector.
“For example, Google’s US data centres report a 5.9 multiplier, meaning nearly six indirect jobs for each direct one. This highlights the broader economic impact and job creation potential for Malaysia’s data centre industry,” he said.
“These state-of-the-art facilities will not only empower our manufacturing and service-based industries – particularly the small and medium businesses (SMBs) – to leverage advanced technologies like AI (artificial intelligence) and cloud computing, but also enhance our industries’ capacity to move up the global value chain,” said Tengku Zafrul.
Facilitated by the Malaysian Investment Development Authority (Mida) and Malaysia Digital Economy Corporation (MDEC), Google’s construction of a data centre in Malaysia is part of a US$2bil (RM8.3bil) investment. This initiative is projected to contribute US$3.2bil (RM13.3bil) to the economy.
He also added that Google’s data centres will play a crucial role under the New Industrial Master Plan 2030 (NIMP 2030), which targets the creation of 3,000 smart factories by 2030.
“Data centres are also critical enablers for Malaysia’s ambition to become a regional leader in cloud computing and AI (artificial intelligence).
“Regionally, the demand for data processing and storage solutions is increasing exponentially. Malaysia is well positioned to meet this demand, thanks to the robust digital infrastructure we are building, which includes data centres.
“Equally important is how data centres enable start-ups and SMEs to access advanced technologies, helping them scale their operations and compete globally,” he said.
Data centres, cloud services and digital government initiatives, he said, are the foundation for the development of services in other sectors such as finance, healthcare and education.
According to Tengku Zafrul, the new data centres will be a “new corporate benchmark in Malaysia via their power (PUE) and water (WUE) usage effectiveness”.
Google said it will be working with both the Global Environment Centre (GEC) and Petaling Jaya City Council (MBPJ) on water stewardship efforts at Taman Aman Lake in Selangor and the surrounding areas.
This marks the company’s first project of this kind in Malaysia and aims to improve water quality and biodiversity at the lake by utilising floating constructed wetlands and reintroducing native aquatic species.
Under the water stewardship programme, Google aims to replenish 120% of the water it consumes by 2030.
The company also announced that it is expanding its Solar API service to accelerate solar energy adoption in the country.
“In line with Malaysia’s nett-zero goals, we also welcome Google’s leadership in energy-efficient operations, which will undoubtedly set new national benchmarks in power and water usage effectiveness,” said Tengku Zafrul.
“But above all, this journey is about our people. It is crucial for Malaysians to be equipped with the skills required for the jobs of the future, particularly as more hi-tech and AI-focused investments flow into the country and we grow Malaysia’s capacity to serve the region’s digital economy,” he said.
Alphabet president and Google chief investment officer, Ruth Porat, said the company reaffirms support for advancing the country’s digital future.
“Google’s investments in infrastructure, digital skilling and sustainability represent progress on our joint efforts with the government of Malaysia to create high- value jobs and bring the benefits of AI to local communities and companies.
“As we do this, Google will continue its responsible stewardship of natural resources by improving community watershed health and ecosystems in Malaysia and helping to drive local adoption of renewable energy sources,” she said.
Google also launched the Future Skills for All (FS4A) digital training initiative, a programme aimed at training 260 teachers in Selangor. These teachers will, in turn, train up to 61,000 students across the state.
The FS4A programme is a collaborative effort involving MDEC, Unicef Malaysia, CelcomDigi and Arus Academy, with backing from the Education Ministry.
Tengku Zafrul said he hopes the initiative will “be replicated in other states”.
“Google’s continued commitment to upskilling our workforce through programmes like Gemilang (Google’s digital career certification platform) and Future Skills for All will also ensure a more inclusive digital future for Malaysia’s workforce,” he added.