Written by Irhamy Ahmad, Founder and Managing Director of Irhamy Valuers International

Malaysia’s data centre industry is experiencing rapid expansion, cementing its position as a key Southeast Asian digital hub. By Q1 2025, operational capacity reached 522 MW, with an additional 1.1 GW expected by year-end, pushing total capacity towards 5 GW. This growth is backed by strong government support and significant global investments. Major milestones include AWS launching its Asia Pacific (Malaysia) Region in August 2024, Google beginning work on a US$2 billion facility in Selangor in October 2024, Microsoft’s first Malaysian cloud region scheduled for Q2 2025, and Alibaba Cloud opening its third local site in July 2025. In 2024, Tenaga Nasional Berhad boosted the national grid with nine projects adding 1.3 GW of maximum demand, while MIDA confirmed six operational sites by mid-year. 

Local players are also scaling up rapidly. Equinix expanded its KL1 facility by 450 cabinets in May 2025, bringing capacity above 4.5 MW, while Telekom Malaysia’s KVDC2 (9.2 MW) and IPDC2 (10 MW) are set to go live in late 2025. AIMS completed its Cyberjaya Block 2 (8 MW) in April 2024 and Block 3 (12 MW) in mid-2025. Growth is concentrated in Klang Valley and Johor, the latter expected to hit 1.6 GW by mid-2025 due to its strategic proximity to Singapore. As energy and water usage rise, the sector is increasingly shifting towards sustainable, high-efficiency solutions to support long-term growth.