The agreement highlights efforts by global tech firms to decarbonise their energy-intensive operations such as data centres. 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 decarbonise its operations.
A spokesperson for Google was not immediately available to comment. A spokesperson for Shizen Energy declined to comment.
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.
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The Malaysian 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 power purchase agreement with Google for its data centre in the Chiba prefecture.
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