Malaysia’s data center sector is experiencing remarkable growth, with investments skyrocketing threefold in 2024. In the first ten months of the year, companies committed MYR141.7 billion (approximately $31.5 billion), a significant increase from MYR46.2 billion ($10.3 billion) in 2023, according to property consultancy Knight Frank.

This surge is heavily influenced by major tech companies, including Nvidia, which allocated $4.3 billion; Microsoft, contributing $2.2 billion; ByteDance, with $2.1 billion; Google investing $2 billion; and AWS planning to invest $6 billion by 2038.

Currently, Malaysia dominates the Southeast Asian data center market with a capacity of 429 MW, far surpassing Indonesia, the second-largest player, which has only 93 MW.

The primary factors fueling this investment boom include an influx of capital into artificial intelligence and the region’s burgeoning digital services market, which attracts both Western and Chinese tech giants. Additionally, the Malaysian government’s proactive measures to promote its digital economy have bolstered this growth, making the country an attractive destination for data center investments.

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