Tap into the Data Centre boom in Malaysia

 

WHAT 
  • Malaysia is on its way to becoming a data centre (DC) hub in the region. Between 2021 and June 2024, a total of 20 billion USD poured in for DC developments. International companies such as US-based Google, Microsoft, Equinix, as well as China-based Yondr Group, Bridge Data Centres and Singapore-based Keppel Data Centres and Singapore Telecommunications Ltd (Singtel) are among the big names in Malaysia's DC market. 
  • According to DC research company Baxtel, Johor has a total of 63 DC facilities with another 23 under construction. The state is currently ranked as the fastest growing DC market in Southeast Asia, with total capacity nearly doubling over the past year to 5,8GW as of Q2 2025. Not to be left behind, Kuala Lumpur comes in as the second largest DC market in the country and 13th in the region. In total, there are about 64 DCs in operation in the city and another 15 under construction. 
  • Malaysia is on track to attract more than US$40 billion in artificial intelligence and data centre investment by 2030. The investments, driven by major hyperscalers and global technology firms, are set to position Malaysia as a leading AI data centre hub in South-East Asia.
  • With the increasing focus on sustainability, there's a growing need for renewable energy solutions to power data centres. It's estimated that 35-40 gigawatts (GW) of renewable energy capacity, primarily solar, will be necessary to support an anticipated 7.2GW of data centre load. 
  • The growth of Malaysia's digital economy and the increasing adoption of cloud services by local businesses present significant opportunities for data centre providers to expand their presence in the market. 
  • Malaysia's data centre industry is poised for robust growth, driven by increasing digital transformation, strategic geographic location, and government support for infrastructure and renewable energy integration.The data centre market is projected to grow at a compound annual growth rate (CAGR) of 19.55% from 2026 to 2031, expanding from 6.55 billion USD to an estimated 16.02 billion USD by 2031.

 

HOW 
  • Sweden, with its expertise in sustainable data centre operations, security, energy efficiency and advanced cooling technologies, has strong potential to collaborate with Malaysian stakeholders on innovative solutions for energy-efficient and environmentally friendly data centres. 
  • Potential collaborations on data centre innovation and solutions with Malaysian stakeholders. 
  • Opportunities arising from the increasing focus on sustainability for data centres in Malaysia. 

 

CONTACT US 

For more information contact Steve Chai at  steve.chai@business-sweden.se.