Malaysia cements position as top site for data centre investments: MDEC

KUALA LUMPUR: Malaysia is rapidly cementing its position as a leading destination for data centre investments in Southeast Asia.
Global technology giants pointing to stable governance, clear digital strategies and strong institutional coordination as key enablers.
Malaysia Digital Economy Corporation (MDEC) chief executive officer Anuar Fariz Fadzil said investor confidence is being driven by the country's coherent policy direction, effective public-private collaboration, reliable power infrastructure, low disaster risk and commitment to long-term sustainability.
"The fundamentals are in place - from institutional support to renewable energy integration.
"This is why global players are choosing Malaysia as their regional base for cloud and data infrastructure," he added.
Anuar spoke at the international Datacentre and Cloud Infra Summit (DCCI) 2025 at the Kuala Lumpur Convention Centre on Wednesday.
Malaysia currently hosts some 54 operational data centres, with a further 24 under construction, supported by a balanced mix of domestic and international players.
Global technology firms such as ByteDance, Microsoft, Oracle and Nvidia have already expanded their presence, while Google's new hyperscale data centre in Port Dickson - part of a US$2 billion investment - is progressing on schedule.
Data centre and cloud infrastructure projects alone accounted for over RM9.9 billion, representing more than 60 per cent of total approved investments under the Malaysia Digital (MD) initiative from January to mid-April 2025.
This forms part of RM16.2 billion in overall digital investments approved during the same period.
Anuar said these investments are expected to generate thousands of high-value jobs and enhance Malaysia's position as a trusted regional hub for digital services.
"These projects are creating meaningful, gainful employment for Malaysians, enabling greater digitalisation for businesses and deliver long-term benefits for the rakyat and the nation as a whole," he said.
Beyond the Klang Valley, momentum is also building across the country. Johor and Cyberjaya remain leading clusters, but newer locations such as Port Dickson as well as Sabah and Sarawak are quickly emerging.
In Sabah, the upcoming Tier III Borneo Data Centre in Kota Kinabalu is expected to boost regional connectivity, while in Sarawak, projects within the Samalaju Industrial Park and digital infrastructure expansion in Kuching are positioning the state as a rising data economy.
"What we are seeing is a nationwide movement - from the peninsula to East Malaysia - driven by investor confidence, government facilitation and real market demand," Anuar said.
He added that Malaysia's firm commitment to environmental, social and governance (ESG) principles is also a key factor in attracting responsible, long-term digital investments.
The country is aiming for a 40 per cent renewable energy mix by 2035 - a target that resonates with the sustainability expectations of hyperscalers and cloud service providers.
As an agency under the Digital Ministry, MDEC works closely with sibling agencies including MyDIGITAL Corporation, CyberSecurity Malaysia, Digital Nasional Bhd, MYNIC, the National Digital Department and the Department of Personal Data Protection to ensure that Malaysia's digital infrastructure development is consistently aligned with national priorities.
"Our collective efforts ensure Malaysia's infrastructure strategy remains aligned with cybersecurity, regulatory and talent development goals," said Anuar.
While acknowledging challenges around power readiness, land provisioning, regulatory speed and talent supply, Anuar said Malaysia's long-standing culture of partnership and adaptability will continue to be a competitive advantage.
"The infrastructure we build today will determine our competitiveness tomorrow. It is essential that we move forward with purpose, clarity and shared resolve," he said.
Meanwhile, event organiser Trade pass director Praveen Venu commended the government for creating a stable, investor-friendly climate that continues to attract high-value digital infrastructure projects into the region.
"Malaysia has positioned itself exceptionally well under the Madani government's leadership. The clarity of its digital roadmap, commitment to ESG principles and willingness to work hand-in-hand with industry players are exactly what global investors look for," he said.
"As an international company, we are proud to host DCCI 2025 in Kuala Lumpur where conversations have moved beyond growth to encompass sustainable, inclusive progress that benefits the entire region," said Praveen.

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