Gamuda wins $237 million data center deal from Google in Malaysia

Gamuda lands major data center contract and land sale deal with Google’s affiliate Pearl Computing, supporting Google’s $2 billion Malaysia investment.

Signage is seen at Google headquarters in Mountain View, California, on April 23, 2025. Photo by David Paul Morris/Bloomberg

By Anna Fadiah and Hayu Andini

Malaysian infrastructure powerhouse Gamuda Bhd. has secured a data center construction contract valued at over 1 billion ringgit ($237 million) from Google’s local affiliate, Pearl Computing Malaysia Sdn Bhd., signaling the tech giant’s accelerating push into Southeast Asia’s digital infrastructure market. The announcement came through Gamuda’s regulatory filing, solidifying its involvement in one of the largest tech-related infrastructure undertakings in Malaysia’s recent history.

The development is part of Google’s broader commitment to invest $2 billion in Malaysia, a pledge made public earlier this year. That investment includes plans for advanced data centers and cloud computing facilities in the country—an expansion seen as pivotal in supporting growing digital demand in Southeast Asia.

Google-backed Pearl Computing takes strategic step in Malaysia

As detailed in Gamuda’s filing with Bursa Malaysia, the infrastructure firm will not only carry out the high-value construction contract for Pearl Computing but will also be selling a substantial 389-acre parcel of land in Negeri Sembilan. The transaction, valued at approximately 455 million ringgit, will pave the way for the construction of additional data center infrastructure by Pearl Computing.

Pearl Computing is a wholly owned subsidiary of Raiden APAC Pte Ltd., which is itself fully owned by Google. The involvement of Google’s direct affiliates underlines the company’s long-term strategic vision to establish Malaysia as a regional hub for data services.

Comprehensive infrastructure includes water treatment and off-river storage

In addition to standard data center facilities, the Gamuda-Google collaboration will also encompass critical environmental infrastructure. A state-of-the-art water treatment plant with a 65-million-liter capacity is planned, along with an off-river storage system to sustainably support cooling and operational needs. This element highlights Google’s global emphasis on green technology and sustainable resource management in its hyperscale data center developments.

Malaysia’s rising profile in global tech infrastructure

Google’s selection of Malaysia for this major infrastructure investment is a strong indicator of the country's rising status in the global tech and cloud services arena. With Malaysia’s robust legal frameworks, a skilled tech workforce, and pro-investment policies, it has become an attractive destination for global players looking to expand digital infrastructure outside the crowded urban zones of Singapore or Hong Kong.

The $2 billion investment plan announced earlier by Google aims to drive digital transformation in the region by offering more reliable cloud services and localized digital capabilities. Malaysia’s central position in Southeast Asia further boosts its appeal as a cloud hub, providing geographic and logistical advantages for serving nearby countries such as Indonesia, Thailand, and Vietnam.

Strategic land sale supports project scale and speed

The 389-acre land sale by Gamuda to Pearl Computing is not merely a property transaction—it is a key enabler of rapid, large-scale development. By securing a ready location in Negeri Sembilan, Pearl Computing can swiftly proceed with the construction of the data centers. The area’s proximity to Kuala Lumpur and well-developed transport and power infrastructure makes it ideal for a tech campus of this magnitude.

Gamuda’s decision to divest the land while remaining a contractor on the project positions the company strategically. It allows Gamuda to monetize its land holdings while still benefiting from long-term involvement in a major construction initiative.

Pearl Computing and Sime Darby Property’s earlier deal highlights broader momentum

The latest announcement builds on Pearl Computing’s growing presence in Malaysia. In 2023, the company signed a landmark 5.6 billion ringgit build-and-lease agreement with a subsidiary of Sime Darby Property Bhd., another key player in Malaysia’s property development scene. That deal, focused on long-term infrastructure for data centers, signaled Google’s intention to commit to Malaysia over the long term.

Taken together, the Gamuda and Sime Darby deals represent nearly 7 billion ringgit ($1.66 billion) in planned and ongoing projects tied directly to Google’s infrastructure ambitions. With more projects likely to be announced in the coming months, Malaysia’s digital and construction sectors stand to gain significantly.

Google’s Southeast Asia strategy and cloud expansion

Google’s recent moves in Malaysia align with its broader Southeast Asian strategy. The region, home to more than 650 million people, is experiencing a rapid surge in digital adoption, e-commerce, and AI-driven services. To serve this demand, Google and other cloud providers like Microsoft, Amazon Web Services, and Alibaba Cloud are racing to build and expand data center footprints.

By anchoring itself in Malaysia with high-capacity cloud and data infrastructure, Google is not only reducing latency and improving services for users in the region—it is also positioning itself competitively against rival tech firms.

Analysts suggest that the Gamuda deal is just the beginning, with other Malaysian firms potentially securing future contracts as Google’s rollout gains momentum. Given the current scale of investment and Google’s long-term regional goals, additional partnerships with local construction, engineering, and utility companies are anticipated.

Boost to Malaysia’s economy and tech ecosystem

The benefits of the deal between Gamuda and Google extend well beyond construction. The project is expected to generate hundreds of jobs during the building phase and provide sustained employment opportunities once operational. In addition, the presence of Google-backed data infrastructure is likely to attract other tech firms, startups, and service providers to cluster around the facility, creating a digital ecosystem that could spur innovation and economic growth in Negeri Sembilan and beyond.

Malaysia’s Minister of Communications and Digital, Fahmi Fadzil, previously praised Google’s $2 billion investment as a “vote of confidence” in the country's digital readiness and infrastructure capability. The Gamuda contract further validates that view, bringing tangible progress to a vision of digital sovereignty and cloud-first growth.

Future implications for Malaysia’s digital landscape

As construction begins under Gamuda’s stewardship, all eyes will be on how this project evolves and the ripple effects it creates. The success of this initiative could encourage more global tech giants to invest in Malaysia, particularly as geopolitical tensions and energy demands make Southeast Asia an increasingly important digital frontier.

Gamuda’s strong track record in large-scale infrastructure—combined with Google’s financial backing and technological leadership—could set a new benchmark for public-private cooperation in Malaysia’s digital economy.

The 1 billion ringgit data center contract awarded to Gamuda is more than a business deal; it is a signal that Malaysia is ready to take on a larger role in powering the internet infrastructure of the future. With work underway and land secured, Malaysia’s tech transformation is no longer a vision—it is breaking ground.

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