Juwai IQI Holdings reported that Malaysia is the fastest-growing data centre market in Southeast Asia for Q3 2024.
Kashif Ansari, co-founder and CEO of Juwai IQI, pointed out that Malaysia’s robust economic performance has spurred demand in the data centre sector.
Malaysia is expected to be the third largest market for data centres behind Japan and India due to significant growth in the market.
Kashif Ansari
The government has introduced tax incentives, grants, and regulatory support to attract investments.
The Malaysian Investment Development Authority (MIDA) and Malaysia Digital Economy Corporation (MDEC) have created a single point of contact for investors and implemented a green lane pathway to provide new data centres with power within 12 months.
Major cloud service providers like Amazon Web Services (AWS), Microsoft, Nvidia, and Google acknowledge Malaysia’s attractive market and are committed to making significant investments.
Kashif Ansari
Prominent players in the Malaysian data centre market include NTT Global Data Centres, AWS, Microsoft, Google, and local companies such as TIME dotCom and Bridge Data Centres.
The new data centre construction is concentrated in Greater Kuala Lumpur (55%) and Johor (45%), the fastest-growing markets in Southeast Asia.
Kashif Ansari
Johor’s proximity to Singapore, ample land, and reliable power supply drives this growth.
The Malaysian data centre market, with over 3 GW in progress and 1.2 GW planned, is projected to grow ninefold this decade.
A key challenge will be ensuring a reliable and sufficient power supply to support growth.
He stressed the need for investments in power infrastructure and renewable energy sources, as well as developing more submarine cable networks to improve Malaysia’s global connectivity.
Juwai IQI was featured in Business Today, Digital News Asia, The Edge Malaysia, New Straits Time, Berita Harian, Astro Awani, Bernama, Free Malaysia Today, MSN
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