KUALA LUMPUR (Nov 6): As Malaysia’s technology landscape matures, it’s becoming a prime target for global tech giants like Google, Microsoft, and Nvidia. Each of these industry leaders is racing to find the best spot to establish a data centre in our country, recognising its strategic potential as a regional tech hub. But where are these computing quarters located in Malaysia?

Selangor and Johor are emerging as key data centre hubs, with Johor experiencing a particular boom. Its proximity to Singapore, a major data centre hub facing land constraints, has created a spillover effect. For investors seeking to address the region’s growing demand for cloud storage, Johor presents a compelling opportunity.

Utilising the EdgeProp EPIQ platform, we have identified the exact locations of notable investments this year to get a clearer picture of the country’s data centre landscape.

In a major boost for Malaysia’s technology sector, Google has announced a substantial investment of US$2 billion (RM8.72 billion) to build its data centre and Google Cloud within the country.

According to the Ministry of Investment, Trade and Industry’s press release, this ambitious project is expected to create 26,500 jobs across various sectors and contribute a total economic value of RM15.04 billion.

Google’s hyperscale data centre, strategically located in Elmina Business Park, Sungai Buloh, Selangor, is currently under construction by Sime Darby Property Bhd. It is slated for completion in 2026.

According to the Sime Darby Property website, Elmina Business Park is designed to foster the digital economy, offering essential infrastructure such as robust water and energy solutions. This strategic development is expected to attract additional data centres, large-scale manufacturers, and small- and medium-sized enterprises. By 2035, when Elmina Business Park reaches full development, the thriving business ecosystem is projected to create 35,000 job opportunities, meeting the growing market demand.

In May, Microsoft announced a significant investment of US$2.2 billion (RM9.59 billion) in Malaysia over the next four years to support the country’s digital transformation. This is the largest investment the company has made in Malaysia in its 32-year history.

In a strategic move to expand its data centre presence in Southeast Asia, Microsoft has acquired 123.14 acres of industrial land from Eco World. This land, located in Eco World Eco Business Park VI in Kulai, Johor, will be used to develop a new data centre.

The construction and operation of the data centre will create new jobs and stimulate economic activity in the Kulai region. It will also enhance Microsoft’s data centre capacity in Malaysia, enabling the company to serve local and regional customers better.

Last year, YTL Power International (YTLP), a subsidiary of Malaysian conglomerate YTL, announced that it has joined forces with Nvidia to develop a US$4.3 billion (RM18.75 billion) AI cloud and supercomputer infrastructure in Malaysia.

Subsequently, in March this year, YTLP announced the formation of YTL AI Cloud, a new subsidiary of YTLP, that will deploy and manage one of the world’s most advanced AI supercomputers powered by Nvidia’s Grace Blackwell technology. This powerful machine will be housed in YTL’s 1,640-acre Green Data Centre Park, also in Kulai, Johor. It will be powered by renewable energy.

The AI supercomputer aims to meet the growing demand for high-performance computing solutions for AI and machine learning applications. This strategic partnership positions Malaysia as a key player in the global AI landscape.

Malaysia’s abundant land and connectivity attract data centre investments

The surging demand for hyperscale data centres is fuelled by the growing adoption of AI technologies, including machine learning, deep learning, natural language processing (NLP), and Large Language Models (LLMs). Malaysia’s abundant affordable land and excellent fibre connectivity make it an ideal location for these large-scale facilities.

According to market research and consulting company Arizton Advisory & Intelligence, Malaysia’s data centre market is poised for significant growth, with investments expected to reach US$3.97 billion (RM17.27 billion) by 2029. Singapore’s limited land availability is driving this trend, as companies seek alternatives in neighbouring Malaysia.

Source: EdgeProp, November 06, 2024