Malaysia is swiftly becoming a top destination for data center investments, aiming to reach RM3.6 billion (US$781 million) in revenue by 2025, up from RM2.09 billion (US$462 million) in 2022. This growth, fueled by major technology firm investments and expansions, highlights Malaysia’s rising prominence in the digital economy.
Deputy Communications Minister Teo Nie Ching recently affirmed Malaysia’s progress in the data center sector, highlighting the influx of investments and expansion plans by existing operators as indicators of a strong trajectory towards meeting the country’s targets. She noted that the surge in digital economy investments reflects positive momentum.
The Malaysian government’s commitment to fostering a robust data center industry is evident from the impressive figures reported in recent years. From 2021 to 2023, Malaysia approved RM114.7 billion (US$25.6 billion) in investments related to data centers and cloud services, creating over 2,325 high-value jobs in specialised fields.
Additionally, the Malaysian Investment Development Authority (MIDA) approved RM76 billion (US$17 billion) worth of data center-related investments from 2021 to March 2024. These figures reflect the confidence of major technology companies in Malaysia’s potential as a key player in the data center market.
Cyberjaya, a key tech investment location in Malaysia, continues to attract significant interest from hyperscale data center operators. According to Kamarul Ariffin Abdul Samad, Chief Executive Officer of Cyberview Sdn Bhd, Cyberjaya is home to 15 data centers, including commercial and captive facilities. Notable operators are already established in the city.
The recent groundbreaking ceremony for a major tech company’s data centers’ second campus (KUL2) in Cyberjaya further underscores Malaysia’s growing prominence in the data center industry. KUL2, set on 14.16 hectares adjacent to the existing KUL1 campus, will deliver 256 megawatts of IT capacity.
This development is designed to support cloud adoption and the growth of artificial intelligence (AI), reflecting the company’s commitment to expanding its presence in
Malaysia. The company’s planned investment of an additional RM13.32 billion (US$3 billion) reinforces Malaysia’s position as a significant player in the Asia Pacific region’s data center market.
Cyberia Sdn Bhd is actively supporting data center investors by enhancing and optimizing infrastructure. Kamarul Ariffin noted that some of the new data centers 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 center operators, including AI integration.”
The Malaysian government plans to announce new guidelines for data center power usage effectiveness (PUE) and water usage effectiveness (WUE) by the third quarter of this year. These guidelines aim to ensure 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 centers 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’s approach to developing its data center industry includes creating a comprehensive ecosystem for data centers and cloud services. This strategy involves increasing the number of industry suppliers, generating high-value jobs, and positioning Malaysia as a leader in the ASEAN digital economy. By fostering an environment conducive to investment and growth, Malaysia aims to strengthen its digital infrastructure and enhance its global tech presence.
The country’s ongoing efforts and strategic investments demonstrate a commitment to advancing its digital economy and infrastructure. As Malaysia continues to attract significant investments and expand its data center capabilities, it is set to become a central hub for digital and technological advancements in the region.
