Malaysia is set to position itself as a leading data center hub by attracting top technology giants like Google and Microsoft. It is a move aimed at capitalizing on the growth of the digital economy in the region.
Attracting Major Tech Players
Malaysia is gradually carving out a place for itself in the data center industry, says Zafrul Abdul Aziz. Aziz expressed the country’s ambition to entice major players, including Google and Microsoft, to establish in Malaysia. According to Aziz, Malaysia is trying to get as many big companies to their data centre as they can.
Malaysia’s Booming Data Center Market
Arizton’s research shows that Malaysia’s data center market is on the rise. The expectations are that it might boost up to 9.41% in the next 4 years. This growth is already evident in the flurry of activity in the data center industry in the country.
Australia’s NEXTDC Ltd will invest around RM3 billion in Kuala Lumpur 1. Also marking the firm’s first venture into Asia. Similarly, China’s Shanghai DC- Science Co Ltd with have a partnership with MN Holdings Bhd announced in April 2023. This is to build a data center (high performance) in Johor valued at approximately $600 million.
Increasing Foreign Investment
This year has also seen AWS declaring an investment of 25.5 billion Malaysian Ringgit. With the investment, the company will expand its cloud services in Malaysia. In addition, AirTrunk, a hyper scale data centre specialist, will enter the Malaysian market with a plan to construct AirTrunk JHB1 (JHB1).
These projects underscore a rising tide of foreign investment in Malaysia’s data center industry, further solidifying the country’s position as an emerging hub.
Existing Infrastructure and Opportunities
Malaysia is already home to over 20 data centers. There are well-known providers such as NTT Communications, Strateq, Bridge DC, Basis Bay, AIMS DC, TM One, HDC, and others. Cyberjaya and Johor are already significant data center hubs within the country.
As Malaysia continues to lure global tech giants and data center operators. It offers a compelling blend of mature infrastructure, strategic geographic location, and an improving business environment. All of which makes it an attractive destination for data center investments.
