Malaysia’s Data Centre Growth on Track Despite Global Uncertainties

Malaysia's data centre (DC) investment scene is showing no signs of slowing down, even with a few bumps on the global front. According to CIMB Securities, interest in setting up data centre infrastructure in the country remains strong and is expected to pick up pace in the coming months.

Sure, there are external factors to consider—like the rise of open-source AI models such as DeepSeek and recent shifts in US AI chip export rules—but Malaysia still holds a strong position. With its rich natural resources and neutral diplomatic approach, the country is emerging as a serious contender in the global data centre and AI game. CIMB noted that big tech players like Meta, Microsoft, Google, and Amazon aren't backing down on their AI investment plans. In fact, they could collectively pour in around US$320 billion (approximately RM1.41 trillion) into AI development and infrastructure by 2025, according to Quartz.

On the ground, the uptick in land banking activity points to a healthy pipeline of DC projects already in motion. As Malaysia prepares to chair ASEAN in 2025, this focus on boosting data centre investments ties neatly into its goal of becoming a regional digital leader. The digital economy is set to make up about 26% of Malaysia's GDP, which lines up with the targets outlined in the 12th Malaysia Plan. Naturally, this means increasing demand for AI technologies and digital infrastructure to support the nation's transformation.

A report by Knight Frank highlights that there are currently 61 upcoming data centres in Malaysia, with a combined IT load capacity of 1,313 megawatts. Based on estimated capital expenditure of US$6 million per megawatt, this could open up RM35 billion worth of construction opportunities over the next five to 10 years.

Long story short: despite global uncertainties, Malaysia's data centre investment momentum is very much alive—and growing.