Google to buy power from 30-MW solar farm in Malaysia

Google has agreed to buy electricity from a 30-megawatt solar farm in Kedah, Malaysia, developed by a consortium led by a local unit of Japan-based Shizen Energy.

The deal is part of Malaysia’s Corporate Green Power Programme, which aims to attract investment in renewable energy.

The solar project is expected to begin operations in 2027.

Malaysia plans to raise its share of renewables in installed power capacity to 70% by 2050, up from about 26% last year.

Long-term power purchase agreements like this have become common for tech companies seeking clean energy in Asia.

Shizen Energy has also signed renewable deals with Microsoft in Japan and partnered with Google on a data center project in Chiba prefecture.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

A 30 MW solar PPA covers only part of Google’s Malaysia data center load

Google plans a US$2 billion data center in Elmina Business Park, Selangor 1, and hyperscale sites often draw 20 to 100 MW 2. A 30 MW solar PPA will offset only a slice of the load, and the exact share depends on the facility’s final size.
The national grid is 81% fossil fuel based, much of it coal fired 2, so most site power will still come from that mix unless Google signs more renewables.
The Corporate Green Power Programme (CGPP) opens access to renewables, while the Corporate Renewable Energy Supply Scheme (CRESS) lags because network access fees make power pricier than the grid 2. Google is paying a premium for clean power here.

EAC providers can tap Malaysia’s I-REC market as corporate PPA appetite builds

Corporate renewable buying in Malaysia is in flux 3, and Asia-Pacific I-REC (International Renewable Energy Certificate) markets are still maturing 4. CRESS adds new capacity and supports traceable claims for firms with strict targets 3.
Specialist brokers plus sustainability software guide large buyers through Malaysia’s rules and set up auditable deals via CRESS or I-RECs 3. Singapore based firms already seek regional EACs 3, which Malaysia’s data center boom will amplify.
Electricity use in data centers may climb from 9 terawatt-hours (TWh) in 2024 to 68 TWh by 2030, and the country targets 70% renewable capacity by 2050 2. That trend gives certificate markets room to scale with new projects.