Google Signs Major Solar Power Deal in Malaysia with Shizen Energy

Google has announced a big clean energy agreement in Malaysia as part of its effort to power its data centres with more renewable electricity. The deal — one of the company’s first in Southeast Asia under Malaysia’s Corporate Green Power Programme — will help the tech giant buy solar power from a new solar farm being built in Malaysia’s Kedah state. 

What the Deal Is

• Google signed a long-term power purchase agreement (PPA) with a solar project developer led by Shizen Energy and partners. 
• The solar farm will have a capacity of about 30 megawatts (MW) of electricity — enough to supply clean power to part of Google’s energy needs in Malaysia. 
• The project is located in Gurun、 Kedah, and financial arrangements were completed in late 2025. Commercial operation is planned for 2027. 

This deal builds on the existing relationship between Google and Shizen Energy, which has previously worked together in Japan on solar projects. 

How It Fits Into Google’s Energy Strategy

Google — part of Alphabet Inc. — has made a goal to run its operations on carbon-free electricity. That means buying or generating enough clean energy to match the electricity its data centres use. The company has been one of the largest corporate buyers of renewable energy in the world. 

This Malaysia agreement:

• It is one of Google’s first utility-scale solar deals under the new Corporate Green Power Programme (CGPP) in Malaysia. 
• Helps Google extend its clean energy sourcing into Southeast Asia, which has become a key area for new data centre investment and power demand. 
• Aligns with Malaysia’s goals to expand renewable energy use in the electricity mix. The country aims for a 70 % renewable share by 2050 under its National Energy Transition Roadmap (NETR). 

Google’s solar agreement is expected to provide carbon-free energy attributes that the company can use to demonstrate progress toward its carbon goals, often measured on an hour-by-hour basis.

Who Is Behind the Project

The solar power plant is developed and owned by SM01 Sdn Bhd, a consortium including:

• Shizen Malaysia Sdn Bhd – lead developer (49 %) 
• Solarvest Asset Management Sdn Bhd – energy partner (33 %) 
• HSS Engineering Sdn Bhd – engineering partner (18 %) 

UOB Malaysia arranged and financed the project under a project finance facility.

This local partnership supports regional clean-energy expertise while linking global corporations like Google with Malaysia’s renewable energy market. 

Why This Matters

For Google

• Allows Google to secure part of its energy from new solar generation rather than only buying renewable certificates or investing in projects far from its data centres. 
• Helps meet growing electricity demand as data centres expand — especially in Asia, where digital services and cloud computing use large amounts of power. 
• Aligns with corporate sustainability targets to reduce greenhouse gas emissions and reach carbon-free operations.

For Malaysia

• Boosts the local renewable energy market under the government’s Corporate Green Power Programme. 
• Supports job creation and regional economic development through large-scale solar deployment. 
• Helps Malaysia progress toward national decarbonisation goals, especially in heavy-demand sectors like data centres and industry.

What Is the Corporate Green Power Programme (CGPP)?

Malaysia’s Corporate Green Power Programme encourages companies to invest in renewable energy through long-term contracts like this one. CGPP aims to:

• Expand private sector involvement in renewable generation 
• Support decarbonisation of electricity use by large consumers 
• Accelerate clean energy infrastructure growth in the country 

This model mirrors similar corporate renewable programs in other regions and shows how big tech companies are driving renewable growth outside traditional utility projects.

A Growing Trend

Google’s move follows a wider pattern:

• Tech giants like Google, Microsoft, and Amazon are locking in clean power contracts globally to meet sustainability commitments. 
• In Asia, countries like Malaysia are becoming targets for renewable contracts because of rising energy demand and data centre buildouts. 
• These deals help countries and corporations share risk and investment in renewable development, while speeding up the energy transition.

Timeline & Outlook

• 2025: Financial close of the solar power project was achieved in November. 
• 2027: The solar farm is expected to begin commercial operations. 

Once operational, this project will supply clean electricity into Malaysia’s grid and provide Google with a portion of its renewable power needs in the region.

Bottom Line

Google’s 30 MW solar PPA in Malaysia with Shizen Energy and partners marks an important step for both corporate clean-energy procurement and Malaysia’s transition toward renewables. The deal supports sustainability goals, helps power Big Tech infrastructure with clean electricity, and strengthens renewable energy development in Southeast Asia — a region where energy demand is rising fast.