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Malaysia is quickly becoming a leading choice for investing in data centers. It aims to generate RM3.6 billion (US$781 million) in revenue by 2025, compared to RM2.09 billion (US$462 million) in 2022. The growth is driven by investments and expansions by major technology companies, showcasing Malaysia’s increasing importance in the digital economy.
Malyasian Deputy Communications Minister Teo Nie Ching said Malaysia is making progress in the data centre sector. She pointed out that the increase in investments and expansion plans by existing operators show that the country is on track to meet its targets. She also highlighted that the rise in digital economy investments is a positive sign.
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The Malaysian government has been actively supporting the growth of the data centre industry. In the past years, they have approved investments totaling RM114.7 billion (US$25.6 billion) for data centres and cloud services. This has resulted in the creation of over 2,325 high-value jobs in specialized fields.
The Malaysian Investment Development Authority (MIDA) approved RM76 billion (US$17 billion) worth of data centre-related investments from 2021 to March 2024. This shows that major technology companies are confident in Malaysia’s potential as a key player in the data centre market.
Cyberjaya in Malaysia is a popular place for tech investments. Many big data centre operators are interested in the city. There are currently 15 data centres in Cyberjaya, including commercial and captive facilities.
Malaysia’s growing importance in the data center industry is highlighted by the recent groundbreaking ceremony for a major tech company’s second data center campus, KUL2, in Cyberjaya. KUL2, located next to the existing KUL1 campus and covering an area of 14.16 hectares, will provide 256 megawatts of IT capacity.
The company is investing RM13.32 billion (US$3 billion) to support cloud adoption and the growth of artificial intelligence (AI) in Malaysia. This investment will strengthen Malaysia’s position in the Asia Pacific region’s data centre market.
Cyberview Sdn Bhd is actively supporting data centre investors by enhancing and optimising infrastructure. Kamarul Ariffin noted that some of the new data centres in Cyberjaya are being designed with AI readiness in mind, allowing for a transition from hyperscale to AI capabilities as the need arises. “We are ensuring that our infrastructure supports the evolving needs of data centre operators, including AI integration.”
The Malaysian government will announce new guidelines for data center power and water usage by the third quarter of this year to make sure data centers meet sustainability requirements and support the country’s goal of achieving net-zero emissions by 2050.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz emphasized that these measures are critical as data centres consume substantial power and water. The guidelines, being finalized by SIRIM and the Department of Standards Malaysia, will address resource sustainability to attract further investments.
Malaysia aims to develop its data centre industry by creating a comprehensive ecosystem for data centres and cloud services. The strategy involves increasing industry suppliers, creating high-value jobs, and positioning Malaysia as a leader in the ASEAN digital economy. Malaysia hopes to attract investment and strengthen its digital infrastructure to enhance its global tech presence.
Malaysia is committed to advancing its digital economy and infrastructure through ongoing efforts and strategic investments. As a result, the country is attracting significant investments and expanding its data center capabilities, positioning itself as a central hub for digital and technological advancements in the region.
