KUALA LUMPUR: Google’s new data centre in Malaysia is set to become the corporate benchmark for power and water usage effectiveness, in line with the country’s circular economy best practices.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the government will introduce guidelines that focus on power and water usage effectiveness alongside the centre’s development.

He said these guidelines are to minimise the environmental footprint of data centres while maximising their operational efficiency.

“We are aware of how energy-intensive data centres can be. That is why our Green Investment Strategy (GIS) is focused on ensuring that all new digital infrastructure developments, including data centres, support our commitment to achieving net-zero emissions by 2050,” he said in his keynote address at the “Mantap Malaysia Bersama AI” event here today.

Tengku Zafrul also said the upcoming Corporate Renewable Energy Support Scheme (CRESS) will enable third-party access (TPA) for renewable energy.

He noted that the scheme allows companies to source clean energy directly from energy producers.

“This will further promote green energy adoption to support the decarbonisation of Malaysia’s digital infrastructure,“ he noted.

According to Tengku Zafrul, since 2021, Malaysia has approved RM123.5 billion in data centre investments through the Malaysian Investment Development Authority (MIDA) and Malaysia Digital Economy Corporation (MDEC).

“The approved investments have positioned the country as a preferred regional data centre hub, and collectively, these investments are expected to create more than 64,000 high-value jobs,“ he added.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim attended Google’s groundbreaking ceremony for its US$2 billion (US$1 = RM4.12) data centre and cloud region in Malaysia.

The data centre, under construction in Elmina Business Park, Selangor, will address the rising demand for Google cloud capabilities, artificial intelligence (AI) innovations, and other digital services used daily by individuals and organisations in Malaysia.

Google’s investment is expected to generate an economic impact exceeding US$3.2 billion and create 26,500 jobs by 2030.