Google Signs Solar Power Pact in Malaysia With Shizen Energy
(Bloomberg) -- Alphabet Inc.’s Google has signed a solar power agreement in Malaysia, as the tech giant looks to secure clean electricity for its operations globally.
Google will buy power from a 30-megawatt solar farm developed by a consortium led by a local unit of Shizen Energy Inc., the Japanese company said in a statement on Monday, confirming an earlier report by Bloomberg News. The project in Malaysia’s Kedah state is part of the nation’s push to provide green power to companies and is expected to start operations in 2027.
The agreement highlights efforts by global tech firms to decarbonize their energy-intensive operations such as data centers. But parts of Asia, where the likes of Google, Microsoft Corp. and Amazon.com Inc. have a large presence, remain heavily reliant on fossil fuels. A Google official said earlier this year the firm sees the region as one of the “most challenging parts of the world” to decarbonize its operations.
Malaysia aims to have 70% of its installed power capacity be renewables by 2050, from about 26% last year, according to BloombergNEF. The country has taken steps to attract investment accordingly, like the Corporate Green Power Programme, under which the Google-Shizen was signed.
Long-term power purchase agreements like the one between Google and Shizen have become a key tool for these companies to achieve their emissions goals, providing financial guarantees in a region that can often have an uncertain regulatory landscape.
The Malaysia project is Shizen’s latest clean power agreement with a tech firm. The company signed a batch of renewable energy deals in Japan with Microsoft in October, and has in the past signed a PPA with Google for its data center in Chiba prefecture.
(Updates with press release from Shizen Energy in second paragraph.)
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