Gamuda Bhd, a Malaysian infrastructure company, has secured a data center project valued at over 1 billion ringgit (US$220 million) from Google’s Malaysian affiliate, as reported in company filings.

Under the agreement, Gamuda will sell 389 acres of land in Negeri Sembilan state to Pearl Computing Malaysia Sdn for approximately 455 million ringgit (US$100.1 million).

Pearl Computing, which is wholly owned by Raiden APAC Pte and ultimately by Google, plans to develop data centers on this land.

The project will also include the construction of a water treatment plant with a capacity of 65 million liters and an off-river storage system.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Malaysia emerges as a strategic hub in Southeast Asia’s data center boom

Google’s $237 million contract with Gamuda reflects Malaysia’s rapid rise as a key player in the regional data center landscape, challenging Singapore’s traditional dominance.

The country has become increasingly attractive to tech giants due to its strategic location, competitive electricity tariffs, and lower risk of natural disasters compared to neighboring countries 1.

This latest investment is part of Google’s broader $2 billion commitment to Malaysia, which aims to generate $3.2 billion in economic activity and create 26,500 jobs by 2030 2.

The Southeast Asian data center construction market is projected to grow from $5.42 billion in 2024 to $11.80 billion by 2030, with Malaysia positioned as one of the major beneficiaries of this expansion 3.

Malaysia’s government has actively encouraged this growth through policies including tax incentives and subsidies, contributing to approximately 50 new data center projects in the region over the past three years 4.

The digital economy already contributes approximately 25% to Malaysia’s GDP, with expectations for further growth driven by increasing demand for cloud computing, AI, and other digital services 4.

2️⃣ Water and energy management critical for sustainable data center growth

Google’s data center project with Gamuda specifically includes a water treatment plant with 65 million liters capacity and an off-river storage system, highlighting the significant resource demands of these facilities.

Data centers in Malaysia are projected to require approximately 35 billion liters of water annually by 2027 for cooling systems, placing considerable pressure on local water resources 5.

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