Kuala Lumpur, Malaysia – A recent report by real estate agency Knight Frank Malaysia revealed that Malaysia has achieved a total of RM141.72b in digital investments within the year’s first ten months, marking a threefold rise from 2023 and establishing its status as the leading digital hub across the region.
According to the agency, the country secured the top spot in the index for the second consecutive year, noting an annual take-up of 429 MW as well as outperforming other countries in the region. Said achievement was driven by the US$ 23.3b investments from tech giants including Microsoft, AWS, Google, and Oracle.
It was further noted that its government’s proactive measures, such as the Green Lane Pathway and the Corporate Renewable Energy Supply Scheme (CRESS), has been beneficial in shaping a resilient data centre ecosystem. These efforts have enhanced Malaysia’s infrastructure readiness and commitment to sustainability and innovation in technology.
“As the world leans into green innovation, Malaysia’s leadership in renewable energy and sustainable data centres sets a precedent for responsible technological growth,” said Chelwin Soo, director of Land and Industrial Solutions at Knight Frank Malaysia.
“By fostering strategic partnerships between real estate developers, data centre operators, and supply chain companies, Malaysia is creating a dynamic ecosystem that drives industry evolution. The synergy between public initiatives and private innovation positions Malaysia as a magnet for industrial growth, unlocking vast opportunities for both local and global players in the years to come,” Soo added.
Keith Ooi, group managing director at Knight Frank Malaysia, commented, “Malaysia’s strategic efforts in digital infrastructure are not just a blueprint for the region but a call for global players to seize this unparalleled opportunity. The country’s commitment to technological innovation and sustainability makes it a preferred destination for data centre investments and a model for economic resilience.”
Amy Wong, executive director of Research and consultancy at Knight Frank Malaysia, also stated, “Malaysia’s position at the top of the SEA-5 Data Centre Opportunity Index for two consecutive years underscores its regional leadership in the data centre industry.”
“With an impressive annual take-up of 429 MW and a GDP growth forecast of 5.5% for 2025, Malaysia’s robust infrastructure, strategic investments, and forward-looking policies continue to set it apart. This dominance not only reinforces Malaysia’s competitive edge in Southeast Asia but also signals the nation’s readiness to sustain long-term growth in the digital economy,” explained Wong.
Meanwhile, Justin Chee, executive director of valuation and advisory at Knight Frank Malaysia, remarked, “As our data centre industry transitions into a stabilisation phase, the focus on sustainability, energy efficiency, and innovation will define its future trajectory. Notably, Johor has emerged as a key player, surpassing Klang Valley in IT capacity and driving substantial land transactions for large-scale data centre developments.”
“The exponential growth in Johor, particularly in areas like Kulai and Iskandar Puteri, is attracting major international operators and creating significant opportunities for land acquisitions and partnerships.” Chee further added that, “Meanwhile, Klang Valley continues to evolve, with a strong pipeline of large-scale data centres such as those planned by Google and AWS,” continued Chee.
“By striking a balance between regulatory frameworks, technological advancements, and strategic land acquisitions, Malaysia is well-positioned to lead the way in sustainable data centre growth across the region,” Chee concluded.
