Sabah, Sarawak fast emerging as key digital infra hubs
Anuar Fariz Fadzil says digital clusters in East Malaysia are now gaining momentum, backed by strong support from the Madani Government, regional demand and growing investor confidence. – Photo by Ronnie Teo
KUALA LUMPUR (May 18): Sabah and Sarawak are fast becoming integral to Malaysia's national digital infrastructure strategy, with major data centre developments placing East Malaysia firmly on the map for high-value digital investments.
Malaysia Digital Economy Corporation (MDEC) chief executive officer Anuar Fariz Fadzil said that while Johor and Cyberjaya have long been established digital clusters Peninsular Malaysia, new locations in East Malaysia are now gaining momentum, backed by strong support from the Madani Government, regional demand and growing investor confidence.
In Sabah, the upcoming Tier III Borneo Data Centre in Kota Kinabalu is expected to significantly improve regional connectivity and support cross-border data flows.
Over in Sarawak, projects within the Samalaju Industrial Park and ongoing infrastructure expansion in Kuching are helping to position the state as a rising hub for data-driven industries.
'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 was speaking at the Datacentre and Cloud Infra Summit (DCCI) 2025, held in Kuala Lumpur recently, where he highlighted how Malaysia's stable governance, coherent digital strategies and commitment to sustainability are drawing global tech giants to invest.
Malaysia currently hosts 54 operational data centres with another 24 under construction. Global players such as ByteDance, Microsoft, Oracle and NVIDIA have already established a presence, while Google's new hyperscale data centre in Port Dickson, Negeri Sembilan — part of a US$2 billion investment — is progressing on schedule.
Data centre and cloud-related projects accounted for RM9.9 billion, or over 60 per cent of total approved investments under the Malaysia Digital (MD) initiative between January and mid-April 2025. The overall total reached RM16.2 billion in the same period.
'These projects are creating meaningful, gainful employment for more Malaysians, enabling greater digitalisation for businesses and delivering long-term benefits for the rakyat and the nation as a whole,' said Anuar.
He added that Malaysia's 40 per cent renewable energy target by 2035 has become a major draw for global hyperscalers seeking ESG-aligned expansion in Asia.
'We must build not just for today, but for the generations to come. That means embedding sustainability into every layer of our digital infrastructure — from site selection and energy use to operations and regulation.'
As an agency under the Ministry of Digital, MDEC works closely with its sibling institutions — including MyDIGITAL Corporation, CyberSecurity Malaysia, Digital Nasional Berhad (DNB), MYNIC, the National Digital Department (JDN) and the Department of Personal Data Protection (JPDP) — to ensure alignment across cybersecurity, regulation and talent development.
While challenges such as power provisioning, regulatory clarity and skilled talent remain, Anuar said East Malaysia has an important role to play in ensuring inclusive growth across the national digital landscape.
'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, Tradepass director Praveen Venu praised the government's efforts in creating an investor-friendly climate, noting that Malaysia's digital push is increasingly resonating with global players seeking sustainable and inclusive opportunities.
'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 collaborate with industry 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 include sustainable, inclusive progress that benefits the entire region — including East Malaysia.'
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