Alphabet (GOOGL.US), Google's parent company, has signed a solar power purchase agreement in Malaysia as the tech giant seeks clean energy for its global operations. According to sources, Google will procure electricity from a 30-megawatt solar farm in Kedah, Malaysia, developed by a consortium led by Shizen Energy's Malaysian subsidiary.

The project, part of Malaysia's initiative to supply green power to businesses, is expected to commence operations in 2027. This agreement underscores global tech giants' efforts to decarbonize energy-intensive operations like data centers. However, parts of Asia—where Google, Microsoft (MSFT.US), and Amazon (AMZN.US) have significant operations—still heavily rely on fossil fuels.

A Google executive earlier this year described the region as "one of the hardest to decarbonize globally." Malaysia aims to increase its renewable energy capacity share from about 26% last year to 70% by 2050. To attract investment, the country has introduced measures such as the "Corporate Green Power Program," under which Google's deal with Shizen was signed.

Long-term power purchase agreements (PPAs), like the one between Google and Shizen, have become crucial tools for companies to meet emissions targets, offering financial security in regions with uncertain regulatory environments.

The Malaysia project is Shizen's latest clean energy agreement with a tech firm. In October, the company signed renewable energy deals with Microsoft in Japan and previously inked a PPA for Google's data center in Chiba Prefecture.