Google Stock Eyes $400 as Alphabet Bets $15B on Malaysia AI Boom

Google stock (GOOGL) is drawing attention after Alphabet announced plans to invest $15 billion in Malaysia’s AI infrastructure. The announcement comes as Wall Street analysts place their average price target for Alphabet shares near $400.

Reuters reported that Google will invest the money during 2027 and 2028, with data centers and energy projects among its priorities. The expansion will add to the company’s existing operations as demand for AI computing capacity grows.

Alphabet Invests $15 Billion in Malaysia AI Data Centers

Malaysia was already part of Google’s data center plans before the latest $15 billion announcement. Back in May 2024, the company pledged $2 billion for its first local data center and Google Cloud region. It chose Elmina Business Park in Selangor for the project.

Now, Google plans to spend another $15 billion over 2027 and 2028, with new facilities planned in Selangor and Negeri Sembilan.

The latest pledge was made by Alphabet President and Chief Investment Officer Ruth Porat at a ceremony attended by Malaysian Prime Minister Anwar Ibrahim. She added the money was indicative of Google’s trust in Malaysia’s leadership, talent pool, and the increasing demand for digital services.

Google expects the construction phase to contribute an average of $1.1 billion annually to Malaysia’s economy. The projects could support more than 37,000 jobs yearly during construction and over 9,000 annually once operational.

Google AI Investment Expands Power and Cloud Infrastructure

Google’s expansion includes plans to add more than one gigawatt of clean energy capacity to Malaysia’s electricity grid. The company will also have to pay for the electricity bill and associated grid connection expenses at its data centres.

Water availability is another aspect of the development because big computing facilities need cooling systems to deal with heat. Google recently committed $160 million toward shared water infrastructure in Negeri Sembilan, supporting its planned data center operations.

Alongside construction, Google plans four training programs reaching about 800,000 Malaysians over five years. The programs will cover AI skills for students, educators, entrepreneurs, and workers entering technology-related occupations.

The expansion follows Google’s recent Gemini 4 Carbon launch, which added another model to its enterprise AI business. Alphabet’s latest earnings showed Google Cloud revenue doubling as customers increased their spending on AI computing services.

Google Stock Targets $400 Amid Alphabet’s AI Spending

Google stock closed at $278.27 on November 3, gaining 0.08% during the previous trading session. The shares traded between $272 and $280.34, remaining below their October levels despite the company’s growing cloud business.

According to Stock Analysis, 58 Wall Street analysts have an average 12-month GOOG stock price target of $400.37. That forecast represents about 43.9% upside from the latest closing price, although individual estimates range between $300 and $500.

GOOGL Stock Forecast (Source: Stock Analysis)

The outlook follows Alphabet’s third-quarter earnings, which showed revenue increasing 25% annually to $127.6 billion. Google Cloud revenue climbed 103% to $30.7 billion, while operating income for the cloud division reached $11.1 billion.

Alphabet’s AI strategy has also drawn attention from analysts, as examined in our report of Google’s enterprise AI expansion. However, higher infrastructure spending continues to weigh on cash flow despite the company’s revenue growth.

Google’s latest Malaysian commitment adds another two years of planned spending to that expansion. The company has yet to announce individual construction schedules or disclose how much each new campus will cost.