Google’s upcoming data centre in Malaysia is poised to become a model for energy and water efficiency, aligning with the country’s circular economy goals, The Sun reported. Malaysia’s Investment, Trade, and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz, announced that the government would implement guidelines to enhance power and water usage effectiveness, reducing the environmental impact of data centres while boosting operational efficiency.

Speaking at the "Mantap Malaysia Bersama AI" event, Tengku Zafrul emphasised the high energy demands of data centres. He highlighted that Malaysia’s Green Investment Strategy (GIS) is focused on ensuring that all new digital infrastructure developments, including data centres, contribute to the nation’s ambition of achieving net-zero emissions by 2050.

He also introduced the upcoming Corporate Renewable Energy Support Scheme (CRESS), which will allow companies direct access to clean energy through third-party providers, further driving the adoption of renewable energy and supporting the decarbonisation of Malaysia’s digital infrastructure.

Since 2021, Malaysia has approved MYR123.5bn ($29.7bn) in data centre investments through the Malaysian Investment Development Authority (MIDA) and Malaysia Digital Economy Corporation (MDEC). These investments have positioned the country as a key regional data centre hub and are expected to create over 64,000 high-value jobs.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim attended the groundbreaking ceremony for Google’s $2bn data centre and cloud region in Selangor's Elmina Business Park. The facility will meet the growing demand for Google’s cloud services and AI technologies in Malaysia. Google's investment is projected to contribute more than $3.2bn to the economy and generate 26,500 jobs by 2030.

Last month, Amazon revealed plans to establish its first data centre in Malaysia as part of its Amazon Web Services (AWS) Region expansion, further establishing the country's data centre hub ambition.