Alphabet’s (GOOGL) subsidiary Google has tapped French energy supermajor TotalEnergies (TTE) to supply renewable energy to its data centers in Malaysia as the U.S. tech giant makes further inroads into Southeast Asia.
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TotalEnergies announced on Tuesday that it has entered a 21-year power purchase agreement to supply a total of 20 megawatts of renewable power for Google’s operations in the country. The power will come from Total’s Citra Energies solar plant in northern Kedah province in Malaysia, with construction set to kick off early next year.
Google Taps Malaysia’s Renewable Energy Power Base
The agreement is expected to become effective in the first quarter of 2026. This adds to a deal signed between both companies in November for TotalEnergies to supply 1.5 terawatt-hours of renewable energy to power Google’s operations in Ohio.
The latest deal comes as Google looks to Southeast Asia to help meet its target of running all of its data centers and offices on round-the-clock carbon-free power by 2030. The American tech giant has also agreed to buy 30 megawatts of renewable power from another solar project being led by a local unit of Shizen Energy, a Japan-based company. This agreement is expected to begin operations in 2027.
Google Hunts for Cloud Capacity in Southeast Asia
Google, which in recent months has unwrapped new investments in data centers, cloud, and AI infrastructure in Texas, South Carolina, and Oklahoma, as well as India, has been ramping up its investments in Southeast Asia. This comes as Big Tech firms continue to look outside the U.S. to meet the high energy demands for AI development.
It disclosed plans last year to invest $2 billion in Malaysia, with parts of the investment targeted at building its first data center and cloud region in the country. The plan builds on its 2021 announcement to build its first data center region in Malaysia, pushing it beyond Singapore.
Last year, Google also announced plans to commit $1.7 billion to investments in new cloud and AI infrastructure in Indonesia over four years. The tech giant also revealed plans in the same year to make “significant commitments” to build a new regional data center in Thailand.
Are Google’s Shares a Good Buy?
On Wall Street, Alphabet’s shares continue to carry a Strong Buy consensus rating from analysts. This breaks down to 29 Buys and seven Holds issued by 36 analysts over the past three months.
In addition, the average GOOGL price target of $323.64 indicates 5% upside potential from the current trading levels.
