Sime Darby expands Google data center operations in Malaysia

In Malaysia, a significant expansion is underway as Sime Darby Property embarks on the construction of new data centers for Pearl Computing, a subsidiary of Google. This development comes as part of Google's broader strategy to increase its presence in Southeast Asia. The announcement was made public on a Monday, highlighting the ongoing collaboration between the two companies. The new data centers will be constructed on a 77-acre site within the expansive Elmina Business Park in Selangor, northwest of Kuala Lumpur, which covers a total of 1,500 acres. The project will be located adjacent to a previous endeavor in which Sime Darby is already developing a major data center for Pearl Computing. This facility, which has an estimated value of 1.7 billion ringgit (approximately $390 million), is situated on a 49-acre site within the same business park and is expected to be completed by 2026. This ambitious construction program underscores Sime Darby Property's commitment to supporting the rising demands of the digital economy, as well as its capacity to deliver, own, and lease high-quality data centers. Google's increased investment in the region reflects a broader trend among major tech companies as they seek to extend their operational footprints across Southeast Asia. Just recently, Google announced plans to invest $1 billion to develop cloud computing facilities in Thailand, complementing the $2 billion allocated for various projects within Malaysia. Such a substantial financial commitment indicates the level of confidence tech giants like Google have in the potential of these Southeast Asian markets, which are rapidly evolving in terms of digital infrastructure and technological capabilities. The establishment of these data centers is poised to enhance Selangor’s standing as a key digital hub within Malaysia. According to Azmir Merican, managing director of Sime Darby Property, the collaboration is a testament to their capability to address global digital economy needs. The construction of these facilities is expected to be completed in 2027, at which point the infrastructure will be leased to Pearl Computing for a 20-year term, amounting to up to 5.6 billion ringgit, along with options for renewal for two additional five-year terms. This partnership not only represents a substantial financial investment but also signifies a critical step toward elevating Malaysia's technological infrastructure on the global stage.