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Malaysia's digital investment surges with data centers comprising 76%

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U.S. operator Equinix will invest in building the JH1 data center in Johor, Malaysia. The image shows a render of JH1.

U.S. operator Equinix will invest in building the JH1 data center in Johor, Malaysia. The image shows a render of JH1. (Image: Equinix)

Artificial intelligence (AI) is driving a surge in data center investments across Southeast Asia. According to recent official statistics from Malaysia, from 2021 to the first half of 2024, the overall digital investment reached MYR 162 billion (about USD 36.7 billion), with data centers accounting for the highest proportion at 76%.

This trend underscores the country's advantages of relatively inexpensive land and energy, attracting large tech companies' investments. However, as data centers are energy-intensive industries, securing green energy sources has become a crucial development focus.

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