Google Commits to Enhancing Malaysian Infrastructure with a $236 Million Data Center Agreement Granted to Gamuda
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Tech Goliaths are pouring millions into Malaysian Data Centers! As Google takes the lead, others like Microsoft and Oracle aren't far behind.
Google's latest move? Constructing a massive hyperscale data center in Port Dickson, roughly 90 kilometers south of Kuala Lumpur. By awarding a whopping MYR1 billion (approximately USD 233.7 million) contract to Gamuda DC Infrastructure, this project is well underway.
But wait! There's more. Gamuda DC is also building a water treatment plant supplying a whopping 65 million liters of water per day needed for this data center's cooling system. As if that weren't enough, they've also sold 157 hectares (about 389 acres) of land to Google's Pearl Computing Malaysia for MYR455 million (around USD 106.3 million).
But that's not all Google's got planned for Gamuda. Back in May 2024, they awarded another MYR1.7 billion (USD 397.2 million) contract to Gamuda for mechanical, electrical, and plumbing works at their Pearl Computing data center in Selangor, northwest of Kuala Lumpur.
Microsoft and Oracle, not to be outdone, are also joining the hyperscale and cloud computing scene in Malaysia. While specific details for these two tech titans are less publicly disclosed, their presence here is undeniable, contributing to the surge of data center investments since 2021.
This investment tsunami is quite a sight to behold—over USD 10 billion in data center investments alone in 2023, with investments tripling in 2024. Grand total? A whopping RM278 billion (around USD 65.1 billion) in digital investments from 2021 through December 2024, with a hefty chunk, RM184.7 billion (around USD 43.3 billion), dedicated to data center-related projects!
Why all this craze over Malaysian data centers? Government incentives, land availability (especially in Johor City and Port Dickson), competitive electricity tariffs, renewable energy options, and robust connectivity infrastructure. Malaysia is becoming one of the major data center hubs in Southeast Asia, right alongside Singapore. And the Malaysian government? They're all for it, supporting these investments through initiatives like the Green Roadmap and AI strategies, aiming for sustainable and large-scale data center growth that meets both domestic and regional digital demands.
So, if you haven't already, it's high time to invest in Malaysian data center stocks! That's all, folks—until the next data center boom!
- Lin Yun Ling, a prominent investor, has expressed interest in investing in the growing data center sector in Malaysia, particularly in light of tech giants like Google, Microsoft, and Oracle pouring millions into their data centers in the country.
- In addition to their growth in the realm of technology, Google has ventured into investing in real-estate, purchasing 157 hectares of land from Gamuda for Pearl Computing Malaysia, a move that aligns with the increasing trend of data centers and cloud computing businesses in Malaysia.
- As the Malaysia digital economy continues to expand, major players in the field like Alphabet (Google's parent company) have been looking into finance options for their business ventures, such as data-and-cloud-computing projects, thus contributing to the surge in investments in the country's digital sector.