KUCHING: Sarawak’s technology ambitions gained fresh weight as Western Digital Corporation (WD) expanded its AI storage manufacturing footprint in the state.
WD has enhanced its advanced manufacturing operations in Sarawak, reinforcing the state’s role in enabling the next generation of AI storage technologies.
The company, listed on Nasdaq as WDC, said the move marks a new chapter in its more than 30-year presence in Sarawak.
The ‘New Horizons for WD Sarawak’ hosted by WD recently highlighted enhanced substrate manufacturing capabilities, the groundbreaking of a new glass substrate facility, and a renewable energy agreement with Sarawak Energy Berhad.
The company said the investments would strengthen its ability to deliver next-generation storage technologies needed to support the rapid growth of AI-driven data, while reinforcing Sarawak’s role as a global centre for advanced manufacturing.
“The new glass substrate facility will support the development of next-generation recording technologies that enable higher storage capacities.
“It will also support the future of Heat-Assisted Magnetic Recording technology, helping customers scale AI data more efficiently while supporting the industry’s long-term transition towards higher-density storage architectures,” it said.
WD said its Sarawak operations develop next-generation substrate technologies that support the rapid growth of AI-driven digital infrastructure.
The company said the expansion is aligned with the Sarawak Digital Economy Blueprint 2030, as it continues to invest in innovation and strengthen Sarawak’s position as a strategic hub for future technologies and global manufacturing excellence.
“This includes investing in local talent through partnerships with local universities, as well as contributing to community development through STEM education, healthcare, and social impact initiatives.”
As AI infrastructure continues to scale globally, WD said advanced manufacturing and sustainable operations must evolve together.
The company said its investments in Sarawak reflect both priorities by expanding the technologies needed for future storage innovation while reducing the environmental footprint of manufacturing.
“The Renewable Energy Certificate (REC) agreement with Sarawak Energy, Sarawak’s primary electricity provider, is supported by RECs generated from Sarawak Energy’s hydropower resources,” it said.
It said the agreement aligns with Sarawak’s leadership in renewable energy as outlined in the Sarawak Sustainability Blueprint 2030.
Through the partnership, the company said it has achieved 100 per cent Scope 2 market-based emissions reduction for its Sarawak operations since FY2024 by matching its electricity consumption with RECs generated from Sarawak Energy’s hydroelectric plants.
“This supports its broader sustainability targets, including 100 per cent carbon-free energy by FY2030 and net zero Scope 1 and 2 emissions by FY2032,” it added.
“It also supports transparent reporting aligned with frameworks such as Carbon Disclosure Project (CDP) and Task Force on Climate-related Financial Disclosures (TCFD).”
Witnessing the symbolic exchange of the Renewable Energy Certificate agreement between WD and Sarawak Energy, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said WD’s continued presence and investment in Sarawak reflected the strength of its partnership with the state.
“WD’s continued presence and investment in Sarawak is a testament to the strength of their partnership with us, and also represents Sarawak’s growing role in the global technology landscape,” he said.
“The groundbreaking of this new glass substrate facility and the renewable energy agreement with SEB reflect our shared commitment to sustainable development, innovation, and economic progress for the people of Sarawak.
“We look forward to deepening this collaboration for years to come.”
Meanwhile, Malaysian Investment Development Authority’s (MIDA) Chief Executive Officer, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, said MIDA was pleased to have facilitated WD’s continued investment and growth in Malaysia.
“The extension of WD’s substrate facility in Sarawak reaffirms Malaysia’s position as a key destination for high-value advanced manufacturing and technology investment.
“Aligned with the New Industrial Master Plan 2030 and the National Semiconductor Strategy, this investment strengthens Malaysia’s capabilities in advanced manufacturing, deepens our industrial ecosystem and supports the nation’s transition towards more innovation-driven, high-value economic activities,” he said.
“MIDA remains committed to supporting WD’s long-term plans and ensuring a seamless partnership between the company and the relevant government agencies, as we work together to strengthen Malaysia’s role in the global AI-driven data economy.”
Sarawak Energy’s Group Chief Executive Officer, Datuk Sharbini Suhaili, said the agreement with WD showed how Sarawak’s renewable hydropower could support responsible industrial growth and corporate decarbonisation efforts.
“The REC agreement enables WD to match the electricity consumption of its Sarawak operations with renewable energy certificates generated from Sarawak Energy’s hydropower resources.
“This reflects our shared commitment to sustainable growth while contributing to Sarawak’s position as a destination for responsible, high-value investment,” he said.
WD’s Chief of Global Operations, Vidya Gubbi, said demand for data storage is accelerating as AI transforms every industry.
“Our investment in Sarawak strengthens WD’s ability to manufacture the advanced technologies that will support the next generation of AI infrastructure while deepening a partnership that has fueled innovation for more than three decades.
“Just as importantly, we’re doing it responsibly, enhancing advanced manufacturing while operating on 100 per cent carbon-free energy,” she said.
