Google is doubling down on its data center investments in Malaysia by awarding Gamuda, a construction company cofounded by tycoon Lin Yun Ling, a second contract worth USD 236 million to build a hyperscale data center in Port Dickson, about 90 kilometers south of Kuala Lumpur. The deal, signed between Gamuda DC Infrastructure and Google's Pearl Computing Malaysia, includes the construction of a water treatment plant to supply 65 million liters of water per day needed to cool the data center. This investment is part of Google's efforts to expand its presence in Malaysia, which is rapidly emerging as a key hub for data centers.

The agreement also involves the sale of 389 acres of land to Pearl Computing for 455 million ringgit ($107 million), which will be the site of the data center project. This is not the first collaboration between Google and Gamuda, as the latter was awarded a 1.7 billion ringgit deal in May 2024 to handle the mechanical, electrical, and plumbing works for Pearl Computing's data center project at Elmina Business Park in Selangor. The partnership highlights Google's commitment to investing in Malaysia's growing data center industry.

Malaysia's emergence as a key hub for data centers is fueled by the region's AI boom, with Google announcing a $2 billion investment to develop its first data and cloud centers in the country last year. Other global tech giants, including Microsoft and Oracle, are also pouring in funds, bringing total investment commitments to over $23 billion. This influx of investments is expected to drive economic growth and create new opportunities in the country.

Gamuda, one of Malaysia's leading infrastructure and real estate companies, was founded in 1976 by Lin Yun Ling and his partner Koon Yew Yin. The company has a diverse portfolio of projects in Australia, Singapore, Taiwan, the U.K., and Vietnam, in addition to its operations in Malaysia. Its partnership with Google is a significant milestone in its history and underscores its capabilities as a major player in the construction industry.

The construction of the hyperscale data center in Port Dickson is expected to have a positive impact on the local economy, creating new job opportunities and stimulating economic growth. The project will also contribute to Malaysia's efforts to become a major player in the global data center industry. With its strategic location and favorable business environment, Malaysia is well-positioned to attract more investments from global tech giants in the future.

The growth of Malaysia's data center industry is also expected to drive demand for skilled workers and professionals with expertise in areas such as cloud computing, cybersecurity, and data analytics. As a result, there will be a need for increased investment in education and training programs to develop the skills of the local workforce and meet the needs of the industry. Overall, Google's investment in Malaysia's data center industry is a significant development that is expected to have a lasting impact on the country's economy and technological landscape.

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