TLDRs;
- Google signs 30-MW solar deal to partially power its Malaysia data center.
- Malaysia’s Corporate Green Power Programme encourages corporate investment in renewable energy projects.
- The solar agreement covers only a portion of the data center’s total load.
- Renewable energy certificates help verify corporate green power usage amid rising electricity demand.
Google has entered into a long-term agreement to purchase electricity from a 30-megawatt (MW) solar farm in Kedah, Malaysia. The project is being developed by a consortium led by a local unit of Japan-based Shizen Energy, known for its renewable energy collaborations across Asia. This deal marks a strategic step for Google as it seeks to power its upcoming Malaysia data center with cleaner energy.
Part of Corporate Green Power Push
The agreement is structured under Malaysia’s Corporate Green Power Programme (CGPP), which aims to encourage corporate investment in renewable energy.
The CGPP provides companies like Google with access to certified green power, supporting their sustainability goals while accelerating Malaysia’s transition to cleaner energy sources. The solar farm is slated to begin operations in 2027.
A Slice of Data Center Load
While the 30-MW solar power purchase agreement (PPA) is a significant milestone, it will cover only a portion of Google’s total electricity requirements in Malaysia. The company is investing approximately US$2 billion in its data center located in Elmina Business Park, Selangor, with hyperscale sites typically drawing 20 to 100 MW of power.
Consequently, much of the data center’s electricity will still come from Malaysia’s predominantly fossil fuel-based national grid, which relies heavily on coal.
Renewable Energy and Certificate Markets
The deal also highlights the growing role of renewable energy certificates (RECs) in Asia. Companies purchasing renewable energy can tap into Malaysia’s International Renewable Energy Certificate (I-REC) market to make traceable claims about their clean power usage.
Specialist brokers and sustainability software help navigate regulatory frameworks, including the Corporate Renewable Energy Supply Scheme (CRESS), which supports auditable renewable deals despite higher network costs. As data center electricity demand in Malaysia is projected to rise from 9 terawatt-hours (TWh) in 2024 to 68 TWh by 2030, the market for RECs and corporate PPAs is expected to expand.
Strategic Regional Partnerships
Shizen Energy, which developed the Kedah solar project, has also partnered with Microsoft in Japan and collaborated with Google on a data center in Chiba prefecture.
Such partnerships illustrate the increasing trend of major tech companies leveraging long-term renewable energy deals to reduce carbon footprints while expanding data center operations across Asia.
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