PETALING JAYA: Malaysia has solidified its status as the leading data centre hub in South-East Asia, says Knight Frank Malaysia.
In its Data Centre Research Report 2024, Knight Frank said, with a take up rate of 429 megawatt, Malaysia has outperformed other countries in the region.
“With RM141.72bil in digital investments secured in the first ten months of the year – three times 2023’s total – the nation is redefining its role in the global technology landscape, driven by innovation and strategic growth in the digital economy,” the report said.
The strong demand can be attributed to the significant take-up recorded in Johor and the improved take-up in the Klang Valley by renowned companies like Microsoft, Amazon Web Services (AWS), Google and Oracle.
Knight Frank Malaysia group managing director Keith Ooi said Malaysia’s strategic efforts in digital infrastructure are not just a blueprint for the region, but a call for global players to seize this unparalleled opportunity.
“The country’s commitment to technological innovation and sustainability makes it a preferred destination for data centre investments and a model for economic resilience,” he said.
Additionally, the government’s proactive measures, including the Green Lane Pathway and the Corporate Renewable Energy Supply Scheme, are instrumental in shaping a resilient data centre ecosystem.
By significantly reducing timelines for electricity supply and promoting renewable energy adoption, these initiatives have not only enhanced Malaysia’s infrastructure readiness but also underscored the country’s commitment to sustainability and technological advancement.
Executive director of research and consultancy Amy Wong said this dominance not only reinforces Malaysia’s competitive edge in South-East Asia but also signals the nation’s readiness to sustain long-term growth in the digital economy.
The report also said Malaysia’s leadership in renewable energy and sustainable data centres sets a precedent for responsible technological growth.
By fostering strategic partnerships between real estate developers, data centre operators and supply chain companies, Malaysia is creating a dynamic ecosystem that drives industry evolution.
“The synergy between public initiatives and private innovation positions Malaysia as a magnet for industrial growth, unlocking vast opportunities for both local and global players in the years to come,” said Chelwin Soo, director of land and industrial solutions.
Meanwhile, executive director of valuation and advisory, Justin Chee said the strong focus on sustainability, energy efficiency and innovation will define the future trajectory of the data centre industry in the country.
Chee said Johor has emerged as a key player, surpassing Klang Valley in information technology capacity and driving substantial land transactions for large-scale data centre developments.
“The exponential growth in Johor, particularly in areas like Kulai and Iskandar Puteri, is attracting major international operators and creating significant opportunities for land acquisitions and partnerships,” Chee said.
“Furthermore, Klang Valley has continued to evolve, with a strong pipeline of large-scale data centres such as those planned by Google and AWS.”
