Google Inks Long-Term Solar PPAs in Malaysia with TotalEnergies and Shizen Energy
December 16, 2025
In a significant move to decarbonize its rapidly expanding data center infrastructure in Southeast Asia, Google has announced two major Power Purchase Agreements (PPAs) for solar energy in Malaysia. The deals underscore the tech giant's commitment to powering its operations with 24/7 carbon-free energy and highlight the growing strategic importance of Malaysia as a hub for hyperscale investment in the region.
The company has signed a 21-year agreement with French energy major TotalEnergies for 20 megawatts (MW) of capacity from the Citra Energies solar plant in Kedah province. Construction on the project is slated to begin early next year, with the PPA expected to take effect upon financial close in the first quarter of 2026. This marks the second such deal between Google and TotalEnergies in recent months, following a 15-year PPA signed in November for 1.5 terawatt-hours of power from a 49MW solar farm in Montpelier.
Concurrently, Google has secured a separate PPA with Japanese renewable developer Shizen Energy for a 29.99 MWac solar project under development in Gurun, Kedah. This facility, a flagship project for Shizen's Southeast Asia expansion, is being constructed by a consortium including Shizen Malaysia, Solarvest, and HSS, and is scheduled to become operational in 2028. Under this agreement, Google will receive the environmental attributes from the plant, with the physical electricity feeding into the Malaysian grid.
Giorgio Fortunato, Head of Clean Energy & Power for Asia Pacific at Google, stated, “We’re thrilled to build on our collaboration with TotalEnergies in Malaysia. This agreement is a key part of our strategy to make meaningful investments that benefit the economies where we operate. By enabling this new clean capacity, we are supporting local growth of the electricity system hosting our infrastructure.”
Sophie Chevalier, SVP of Flexible Power & Integration at TotalEnergies, noted that the PPA illustrates the company's "ability to offer competitive power solutions tailored to the needs of major tech groups" in both mature and emerging markets, contributing to its strategic profitability targets in the power sector.
The renewable energy will support Google's substantial $2 billion investment in Malaysia, which includes its first cloud region and data center in the country. The company announced its plans for the Malaysian cloud region in 2022, committed the investment in 2024, and broke ground on the data center facility at the Elmina Business Park outside Kuala Lumpur in October 2024. These latest PPAs are critical for ensuring the long-term sustainability of this major infrastructure project.
For the industry, Google's aggressive procurement strategy in Malaysia signals a clear pathway for other hyperscalers to secure large-scale, bankable renewable energy in growing data center markets. It demonstrates the viability of complex, cross-border PPA structures in Southeast Asia and is likely to accelerate both renewable energy development and competitive clean energy offerings from utility and independent power providers across the region.
Source: datacenterdynamics
