Malaysia Emerging as One of Asia Pacific’s Fastest-Growing Data Centre Hubs

KUALA LUMPUR, Nov 4 — Malaysia’s data centre industry is entering an exciting new phase of growth and consolidation, positioning the nation among the top digital infrastructure markets in the Asia Pacific region, according to JLL Malaysia.

The country’s installed data centre capacity currently stands at 835MW, but that figure is projected to surpass 2,850MW by 2026 and exceed 4,000MW by 2030, signalling one of the fastest growth trajectories in the region.

“This momentum will transform Malaysia into one of Asia Pacific’s largest and most dynamic data centre markets,” said Sum Chun Kit, JLL Malaysia’s Manager for Data Centre Transactions and Capital Markets, during the firm’s third-quarter market briefing.

Johor, Bukit Jalil, and Cyberjaya Lead the Surge

According to JLL, construction activity is booming in Johor, Bukit Jalil, and Cyberjaya, which have become key data centre hotspots. These locations benefit from strong fibre connectivity, reliable infrastructure, and proximity to major power grids — elements that make them especially attractive to global and regional tech operators.

For real estate investors and developers, this rapid expansion signals rising demand for industrial land in Selangor, office space in Bukit Jalil, and commercial property in KL, as supporting ecosystems grow around these high-value data infrastructure corridors.

Power Infrastructure at the Core of Expansion

Sum noted that Tenaga Nasional Bhd (TNB) continues to play a central role by enhancing its national transmission network to meet Malaysia’s rising power requirements.

“The main challenge isn’t generating power — it’s delivering it efficiently to strategic sites. TNB’s proactive grid upgrades are enabling faster, more reliable energy transmission,” he explained.

He added that besides power, fibre connectivity, weather resilience, and water resources are now crucial factors influencing site selection. “Many operators are collaborating with local utilities to create on-site water treatment and recycling systems to support sustainable cooling solutions,” Sum said.

Local Construction Sector Steps Up

Malaysia’s data centre construction market remains highly competitive, with major players such as Sunway Construction leading large-scale design-and-build contracts. Meanwhile, smaller construction firms across Shah Alam, Subang, and Puchong are upskilling to meet international standards, contributing to a stronger overall supply chain for industrial properties in Selangor.

JLL Malaysia continues to strengthen local project management expertise through its UK-based design and engineering teams, enhancing the quality and speed of project delivery.

AI Workloads Driving New Demand

Another major growth catalyst is the rapid rise of artificial intelligence (AI) and machine learning applications, which require significantly greater computing power and energy.

“We’re seeing large-scale investments in AI-focused facilities — sometimes called ‘AI factories’ — as automation and digital transformation accelerate. A single AI query can consume up to 10 times more energy than a standard one,” Sum explained.

Sustainability Efforts Strengthen Investor Confidence

Malaysia’s green policy framework is also advancing rapidly. Initiatives like the Corporate Green Power Programme (CGPP) and the Crest Scheme allow operators to source renewable energy directly from solar producers. The government’s upcoming Sustainable Data Centre Framework, along with innovations in water management, will further reinforce the country’s position as a preferred digital hub in Southeast Asia.

A Bright Outlook for Property and Infrastructure Investors

With continued investments in renewable energy, grid modernisation, and digital infrastructure, Malaysia’s data centre market is poised for sustained expansion through 2030.

This digital infrastructure boom will not only reshape the nation’s technology landscape but also drive demand for industrial properties in Shah Alam, factories in Puchong, and commercial real estate in KL, as supporting sectors — from logistics to construction — scale up to meet new requirements.

As the digital economy matures, Malaysia’s property market is set to benefit from a new wave of international investment, solidifying its role as a strategic data and technology hub in the Asia Pacific.