Malaysia retained its position as Southeast Asia’s top data center hub in 2024, attracting $23 billion in investments and solidifying its status as a leading digital hub, Knight Frank said Monday.
The global property consultant, in its Data Centre Research Report 2024, noted Malaysia ranked first in the SEA-5 Data Centre Opportunity Index for the second straight year, with an annual take-up of 429 MW, surpassing regional peers.
Strategic investments from tech giants like Microsoft, Amazon Web Services (AWS), Google, and Oracle drove the growth, contributing $23.3 billion.
Malaysia hosts 54 operational data centers with a combined capacity of 504.8 MW, led by Johor in IT capacity and Klang Valley as a core market. Emerging hubs include Sarawak, Negeri Sembilan, and Kedah.
Malaysia secured MYR 141.72 billion ($31.56 billion) in digital investments in the first ten months of 2024, tripling the previous year’s total.
Knight Frank highlighted the government’s proactive measures, such as the Green Lane Pathway and the Corporate Renewable Energy Supply Scheme (CRESS), which reduced electricity timelines and promoted renewable energy adoption.
Keith Ooi, Group Managing Director at Knight Frank Malaysia, emphasized the country’s commitment to innovation and sustainability, making it a preferred destination for data center investments.
Amy Wong, Executive Director of Research & Consultancy, underscored Malaysia’s leadership, citing its infrastructure, policies, and 5.5% GDP growth forecast for 2025.
Johor has emerged as a key player, attracting major operators to areas like Kulai and Iskandar Puteri, while Klang Valley continues to evolve with data center projects from Google and AWS.
Justin Chee, Executive Director of Valuation & Advisory, noted the industry’s focus on sustainability and energy efficiency as it transitions into a stabilization phase.
The report highlighted Malaysia’s potential to drive economic growth and create high-value jobs, with collaboration among government, industry, and academia critical to sustaining momentum.
The SEA-5 data center market reached over 3 GW in capacity, a 1.7 GW increase from 2022, supported by expansions from AWS, Oracle, and Microsoft in the region.