Western Digital expands manufacturing for AI storage in Malaysia

Western Digital is expanding its Sarawak manufacturing with new substrate capabilities and a planned glass substrate facility for HAMR storage.

Western Digital is expanding its manufacturing operations in the state of Sarawak in Malaysia with new substrate production capabilities, a planned glass substrate facility, and a renewable energy certificate agreement with Sarawak Energy Berhad. The expansion follows the company’s 30 years of operations in the state in East Malaysia.

Sarawak Premier Datuk Patinggi Tan Sri Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg officiated the groundbreaking ceremony for the new glass substrate facility. The facility will support Western Digital's work on glass substrates for heat-assisted magnetic recording, or HAMR, technology. HAMR uses localized heat during writing to record data at higher density.

According to Western Digital, its Sarawak operations are involved in developing substrate technologies for future hard disk drive platforms. Substrates provide the base material for hard disk media and support higher-density recording.

Western Digital has identified glass substrate media as one of the added components in its HAMR technology, along with lasers and optical transducers. In HAMR drives, lasers and optical components heat the disk surface during writing.

The company said the new facility will support next-generation recording technologies used in higher-capacity storage products. Western Digital linked the technologies to storage systems for AI infrastructure.

The announcement places the Sarawak site within Western Digital's wider hard disk drive manufacturing work. The company did not disclose the investment value, production capacity, or expected completion timeline for the new glass substrate facility in the information provided.

REC deal covers Sarawak operations

Western Digital also signed a renewable energy certificate agreement with Sarawak Energy, the state's main electricity provider. The agreement allows Western Digital to match the electricity consumption of its Sarawak operations with RECs generated from Sarawak Energy's hydropower resources.

The REC arrangement applies to Western Digital's market-based Scope 2 accounting. RECs represent the environmental attributes of renewable electricity delivered to the grid.

According to the company, the arrangement has enabled a 100% Scope 2 market-based emissions reduction for its existing Sarawak operations since FY2024. Scope 2 emissions refer to emissions linked to purchased electricity.

Western Digital said the agreement supports its wider sustainability targets, including 100% carbon-free energy by FY2030 and net zero Scope 1 and Scope 2 emissions by FY2032. The company also said its reporting is aligned with frameworks including CDP and TCFD.

Sarawak Energy Group Chief Executive Officer Datuk Sharbini Suhaili said the REC agreement allows Western Digital to match its electricity use in Sarawak with renewable energy generated from hydropower. He said the arrangement reflects the role of Sarawak's hydropower resources in supporting industrial electricity needs.

The investment aligns with Sarawak's Digital Economy Blueprint 2030 and Sustainability Blueprint 2030, according to Western Digital. The company said its activities in the state include partnerships with local universities, STEM education programs, healthcare support, and other community initiatives.

MIDA linked the project to the New Industrial Master Plan 2030 and the National Semiconductor Strategy. MIDA Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the expansion supports Malaysia's advanced manufacturing and technology investment agenda.

The National Semiconductor Strategy sets out Malaysia's plans to move further into higher-value semiconductor and electronics activities. Western Digital's announcement relates to storage substrate manufacturing, which sits alongside Malaysia's broader electronics manufacturing base.

Johari said Western Digital's continued presence reflects its long-running partnership with the state. He said the glass substrate facility and renewable energy agreement are connected to Sarawak's development, manufacturing, and sustainability goals.

Vidya Gubbi, Western Digital's chief of global operations, said the Sarawak investment supports the company's manufacturing work for future AI infrastructure. She also said the company is operating its Sarawak activities on 100% carbon-free energy.