Gamuda secures $1.3 billion for major solar projects in Malaysia

Malaysia is experiencing a significant boom in data centers, with major technology companies such as Alibaba, Google, and Microsoft establishing their facilities in the country. This growth is driving an increasing demand for renewable energy sources to power these data centers sustainably. In response to this need, Gamuda Berhad, a construction company co-founded by Lin Yun Ling, has embarked on an aggressive expansion into the renewable energy sector. Recently, Gamuda announced its plans to develop two solar projects with a cumulative capacity of 2.7 gigawatts. This includes a partnership with Gentari Renewables, a subsidiary of the state-linked energy company Petronas, to create a solar farm with 1.5 gigawatts of capacity. Additionally, Gamuda is collaborating with SD Guthrie to construct a 1.2-gigawatt solar facility. Although Gamuda has not disclosed the financials for these projects, experts estimate that they will require an investment of around 5.4 billion ringgit ($1.3 billion). The rapid expansion of data centers in Malaysia has escalated the demand for renewable energy solutions, leading to increased investments in solar energy projects. As noted by Joshua Kong Sing Hoe, director of Gamuda Energy, the company aims to support its data center partners by providing a dedicated pipeline of renewable energy that ensures operations can maintain a lower carbon footprint. Furthermore, Low Kian Min, chief renewables officer of Gentari, emphasized that the digital economy's growth is driving a strong need for reliable and sustainable energy in Malaysia. In recent years, Gamuda has successfully secured contracts worth approximately 2.7 billion ringgit ($642 million) for Google-related projects in the country, showcasing its ability to meet the rising energy demands stemming from the digital sector. The push for renewable energy not only aligns with global trends towards sustainability but also positions Malaysia as a leader in renewable energy solutions, potentially attracting further investments and fostering economic growth.