Trends

Malaysia attracts billions, becomes a data centre powerhouse

OUR TAKE In Malaysia, data centre operating costs are likely to be lower, mainly due to relatively cheap energy prices and abundant land resources. This makes Malaysia one of the ideal options to attract big tech companies to build data centres. With the increasing demand for cloud computing and big…

Malaysia-is-emergeing-as-a-data-center

Headline

OUR TAKE In Malaysia, data centre operating costs are likely to be lower, mainly due to relatively cheap energy prices and abundant land resources. This makes Malaysia one of the ideal options to attract big tech companies to build data centres. With the increasing demand for…

Context

OUR TAKE In Malaysia, data centre operating costs are likely to be lower, mainly due to relatively cheap energy prices and abundant land resources. This makes Malaysia one of the ideal options to attract big tech companies to build data centres. With the increasing demand for cloud computing and big data processing, the demand for data centres is also growing, and these emerging markets are gradually becoming the focus of global technology companies due to their cost-effectiveness and potential room for expansion. –Revel Cheng, BTW reporter Malaysia is emerging as a data centre powerhouse in Southeast Asia and the continent more broadly as demand surges for cloud computing and artificial intelligence.

Evidence

Pending intelligence enrichment.

Analysis

Over the past few years, the country has attracted billions of dollars in data centre investments, including from tech giants like Google, Nvidia and Microsoft. Much of the investments have been in the small city of Johor Bahru , located on the border with Singapore, according to James Murphy, APAC managing director at data centre intelligence company DC Byte. Johor Bahru was named as the fastest growing market within Southeast Asia in DC Byte’s 2024 Global Data Centre Index. The city has 1.6 gigawatts of total data centre supply, including projects under construction, committed to or in the early stages of planning. Data centre capacity is typically measured by the amount of electricity it consumes.

Key Points

  • Malaysia is attracting billions in investments for data centres amid increased demand for cloud and AI services.
  • If all of Malaysia’s planned data centre capacity comes on line, it will become one of the largest hubs in Asia.

Actions

Pending intelligence enrichment.

Author

Revel Cheng (r.cheng@btw.media)· author profile pending