Sedenak Tech Park in Johor's Kulai district will be the biggest data centre in Malaysia (Photo: TPM Technopark Sdn Bhd)
To meet the demands of cloud computing and artificial intelligence (AI), investments in data centers in Malaysia have surged. However, this has raised concerns about the shortage of power and water in Selangor, Johor. Local governments have stated that they will prioritize domestic needs and encourage future data centers to use green energy. They may even reject applications that do not meet green standards.
Data center investments in Malaysia reach $16 billion
According to the Malaysian Ministry of Investment, Trade and Industry, from 2021 to March of 2023, investments in data centers have reached 76 billion MYR (about 16 billion USD). Amy Wong, Executive Director of Research & Consultancy at Knight Frank, stated that the number of data centers in Malaysia is expected to double from the existing 45 sites, with an additional 44 sites in the planning.
