Malaysia data centre sector to hit 500MW by 2025

Cyberjaya is the key location in Kuala Lumpur.

According to a JLL report, Malaysia’s data centre industry is expected to touch 500MW by 2025, cementing the country’s position as one of the regional data centre hubs.

Cyberjaya will continue to grow as the preferred data centre location within Greater Kuala Lumpur; Phase 2 of Sedenak Tech Park (STeP) anchors interest in Johor with further potential growing in Iskandar Puteri as the state’s next DC hotspot.

Here’s more from JLL:

Phase one of the Sarawak International Internet Gateway involves the Batam-Sarawak Internet Cable System (BaSICS) and IRIS’s own Tier IV DC – improving Borneo’s internet access and ultimately linking Indonesia and Malaysia.

Tenaga Nasional Bhd (TNB) has fast-tracked upgrading works at the existing Sedenak main intake substation (PMU) with expectations for it to be a catalyst in the development of the 7,290-acre Sedenak Technology Park, of which Sedenak Tech Park (STeP) is a key component.

Entrance and expansions fueling the supply growth pace

Malaysia will be doubling its capacity to approximately 422MW by 2025, upon the completion of ongoing data centre projects, putting the nation in close reach of its forecasted growth.

Sedenak Tech Park (STeP) welcomed Bridge Data Centres’ (BDC) phase one of a 100 MW hyperscale data centre spanning across 40 acres, and the MOU signing between JL and Group Sdn Bhd (JLG) and Mitsui & Co (Malaysia) Sdn Bhd to develop a hyperscale data centre.

MyDIGITAL initiative develops Malaysia as an upcoming data hub

Launched in July 2022, Malaysia Digital is a new framework designed to accelerate the nation’s digital economy growth, succeeding the previous MSC Malaysia.

Of the total approved investments in the information and communications sub-sector from January to September 2022, MYR 60.7 billion (87.7%) came from five ICT services, including three data centre projects by Bridge Data Centres Malaysia III Sdn Bhd, Byte Dance Sdn Bhd, and YTL Power International Bhd.

Note: Kuala Lumpur Data Centres refers to Kuala Lumpur's overall data centre market.