Asia-Pacific Data Center Rush Powers Renewable Energy Boom: Gamuda's $1.3B Solar Expansion in Malaysia

The infrastructure and renewable energy sectors are converging in Malaysia as major technology firms race to establish hyperscale facilities across the region. Construction giant Gamuda has emerged as a key player in this shift, with two major solar installations totaling 2.7 gigawatts now in development to support the region’s rapidly growing computational infrastructure needs.

Scaling Solar Capacity at Record Pace

Gamuda announced two substantial renewable energy commitments within days of each other. Working alongside Petronas’s renewable energy division Gentari Renewables, the company is constructing a 1.5-gigawatt solar facility designed specifically to power mission-critical data operations. In a parallel initiative, Gamuda partnered with agricultural conglomerate SD Guthrie to develop an additional 1.2-gigawatt solar complex. Industry analysts project the combined capital investment for both installations will exceed $1.3 billion, representing one of the largest renewable buildouts for data center infrastructure in the region.

The Data Center Imperative Driving Energy Demand

Malaysia’s position as an Asia-Pacific data center hub has intensified demand for reliable, large-scale power generation. Tech leaders including Google, Alibaba, and Microsoft have selected the country as a strategic location for cloud computing and artificial intelligence infrastructure, creating unprecedented pressure on the electricity grid. Gamuda’s track record with major tech clients demonstrates its capability—the company has previously secured $642 million in contracts related to Google’s regional operations.

“The convergence of digital expansion and sustainability requirements means energy providers must think differently,” noted Joshua Kong Sing Hoe, Gamuda Energy’s director. “Our partnerships enable us to deliver the scale and reliability that modern data infrastructure demands while maintaining environmental standards.”

Gamuda’s Evolution as Infrastructure Leader

Since its founding by Lin Yun Ling and business partner Koon Yew Yin in 1976, Gamuda has transformed from a regional construction enterprise into a diversified infrastructure powerhouse with operations spanning Malaysia, Australia, Singapore, Taiwan, the United Kingdom, and Vietnam. The company’s renewable energy division represents a strategic pivot to capitalize on the intersection of computational growth and decarbonization imperatives reshaping regional development patterns.

The expansion underscores how emerging markets are capturing global investment capital around digital transformation and clean energy infrastructure simultaneously.