Kuala Lumpur/Kedah: In a significant move to decarbonize its expanding footprint in Southeast Asia, tech giant Google has formalized a Power Purchase Agreement (PPA) to source clean electricity from a new solar facility in Malaysia. The deal represents a critical step in the company’s global roadmap to run on 24/7 carbon-free energy by 2030, reported The Business Times.
According to sources close to the development, the Alphabet Inc. subsidiary will procure energy from a 30-megawatt (MW) photovoltaic farm located in the state of Kedah. The project is being spearheaded by a consortium led by the local arm of Japan’s Shizen Energy, with the facility slated to come online in 2027.
Navigating the “Hard-to-Decarbonize” Region: The agreement was executed under Malaysia’s Corporate Green Power Programme (CGPP), a government initiative designed to allow companies to virtually purchase renewable energy to offset their carbon emissions.
For hyperscalers like Google, Microsoft, and Amazon, securing green electrons in Asia has historically been a hurdle due to the region’s heavy reliance on coal and natural gas grids. A Google executive notably remarked earlier this year that Southeast Asia remains one of the “most challenging” geographies for implementing net-zero operational strategies. This new PPA serves as a financial guarantee that helps de-risk renewable infrastructure projects in markets where regulatory frameworks are still maturing.
Malaysia’s Green Ambitions: The deal aligns seamlessly with Putrajaya’s National Energy Transition Roadmap, which targets a renewable energy capacity mix of 70% by 2050—a steep climb from the approximately 26% recorded in 2024. By attracting high-profile corporate buyers like Google, Malaysia is positioning itself as a preferred destination for sustainable data center investments in the region.
