KUALA LUMPUR, Dec 23 — Malaysia is the leading data centre hub in South-east Asia again this year, following the announcement of US$23.3 billion (RM105 billion) of investments from several tech giants such as Microsoft and Google, real estate consultancy firm Knight Frank Malaysia said today.
According to the real estate agency’s Data Centre Research Report 2024 released today, Malaysia had outperformed its four other regional peers in terms of data centres, with its securing of RM141.72 billion in digital investments in January to October 2024 also being three times the total digital investments it secured in 2023.
“Malaysia’s position at the top of the SEA-5 Data Centre Opportunity Index for two consecutive years underscores its regional leadership in the data centre industry,” its executive director of research and consultancy, Amy Wong, said in a statement here.
“With an impressive annual take-up of 429 MW and a GDP growth forecast of 5.5 per cent for 2025, Malaysia’s robust infrastructure, strategic investments, and forward-looking policies continue to set it apart.
“This dominance not only reinforces Malaysia’s competitive edge in South-east Asia but also signals the nation’s readiness to sustain long-term growth in the digital economy,” she added.
Knight Frank Malaysia’s group managing director Keith Ooi said Malaysia’s “commitment to technological innovation and sustainability makes it a preferred destination for data centre investments and a model for economic resilience.
Among other things, Knight Frank Malaysia noted Malaysia’s efforts, such as Tenaga Nasional Berhad’s (TNB) Green Lane Pathway launched in August 2023 to speed up electricity supply for data centres by cutting down implementation timelines from 36 to 48 months to just 12 months, and the Malaysian government’s Corporate Renewable Energy Supply Scheme which supports data centres in adopting renewable electricity supply.
Knight Frank Malaysia said Malaysia’s growth was driven by a total of US$23.3 billion in strategic investments announced during the December 2023 to October 2024 period. The investments were made by tech giants Nvidia, Microsoft, Google, ByteDance, Amazon Web Services (AWS), and Oracle for artificial intelligence and cloud infrastructure.
Currently, Malaysia has 54 operational data centres with a live IT capacity of 504.8 megawatts (MW). Johor leads in IT capacity, followed by the Klang Valley, and with Sarawak, Negeri Sembilan, and Kedah emerging as upcoming data centre locations, Knight Frank Malaysia said.
“While Klang Valley has the highest number of data centres, Johor currently leads the nation in terms of IT capacity, accounting for close to 80 per cent of the total live IT capacity in the country.
“It is also worth noting that Johor will be the first state to hit 1GW when the supply under-construction and committed become operational in the future,” the report said.
Based on Knight Frank Malaysia’s report, Malaysia has 61 upcoming new data centres offering IT capacity of 1,313 MW.
Knight Frank Malaysia’s executive director of valuation and advisory, Justin Chee, said Johor’s emergence as a key player that surpasses Klang Valley in IT capacity is driving substantial land deals for large-scale data centre developments.
“The exponential growth in Johor, particularly in areas like Kulai and Iskandar Puteri, is attracting major international operators and creating significant opportunities for land acquisitions and partnerships.
“Meanwhile, Klang Valley continues to evolve, with a strong pipeline of large-scale data centres such as those planned by Google and AWS,” he said.
Knight Frank Malaysia said its report shows the data centre industry’s potential to drive economic growth, create high value jobs and lead the way in sustainable practices.
