Western Digital Expands Sarawak Manufacturing to Support Future AI Data Storage Technologies
PETALING JAYA: Western Digital Corporation (WD) is strengthening its manufacturing footprint in Sarawak through the development of a new glass substrate production facility, reinforcing the state’s growing role in advanced technology manufacturing while supporting the increasing global demand for artificial intelligence (AI) data storage infrastructure.
The expansion, announced as the company marks more than three decades of operations in Sarawak, also includes a Renewable Energy Certificate (REC) agreement with Sarawak Energy Berhad (SEB), reflecting WD’s continued emphasis on sustainable manufacturing and low-carbon operations.
The new facility will focus on producing glass substrates that support Heat-Assisted Magnetic Recording (HAMR), an advanced hard disk drive (HDD) technology designed to significantly increase storage density for future data centres and AI computing infrastructure.
As AI applications continue generating unprecedented volumes of data, demand for higher-capacity storage solutions has accelerated worldwide. WD said the new investment is intended to strengthen its manufacturing capabilities to meet those evolving requirements while supporting the next generation of enterprise storage technologies.
Sarawak Premier Datuk Patinggi Tan Sri Abang Abdul Rahman Zohari Tun Datuk Abang Openg described the investment as another indication of the state’s growing importance within the global technology supply chain.
He said the groundbreaking ceremony for the new manufacturing facility, together with the renewable energy partnership signed with SEB, demonstrates a shared commitment to innovation, sustainable industrial development and long-term economic growth for Sarawak.
WD Global Chief Operating Officer Vidya Gubbi said rapid expansion in artificial intelligence applications continues driving demand for advanced storage technologies, making continued investment in manufacturing capabilities increasingly important.
She noted that the Sarawak expansion will strengthen the company’s ability to produce technologies supporting future AI infrastructure while operating entirely on carbon-free electricity.
Under its renewable energy partnership with SEB, WD has achieved a 100 per cent market-based reduction in Scope 2 greenhouse gas emissions for its Sarawak operations since the 2024 financial year through Renewable Energy Certificates generated from hydropower resources.
The initiative also contributes to WD’s broader environmental target of achieving net-zero Scope 1 and Scope 2 emissions globally by 2032.
SEB Group Chief Executive Officer Datuk Sharbini Suhaili said the collaboration highlights Sarawak’s capability to supply clean and reliable electricity to support industrial decarbonisation while strengthening the state’s attractiveness as a destination for environmentally responsible, high-value investments.
Meanwhile, Malaysian Investment Development Authority (MIDA) Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the investment complements Malaysia’s New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy (NSS).
He said the expansion will further strengthen Malaysia’s advanced manufacturing ecosystem by deepening industrial capabilities, encouraging innovation-driven economic activities and reinforcing the country’s position within the global technology and semiconductor value chain.
Through its latest investment, WD continues expanding its long-term presence in Sarawak while supporting Malaysia’s ambitions to become a regional hub for advanced manufacturing, digital infrastructure and sustainable industrial growth in the era of artificial intelligence.
