Knight Frank said in its "Data Center Research Report 2024" that Malaysia's data center power consumption reached 429 megawatts, outperforming other countries in the region.
The report said: “In the first ten months of this year, Malaysia’s digital investment has reached 141.72 billion ringgit (equivalent to approximately US$31.5 billion), three times the total in 2023. Driven by innovation and strategic growth in the digital economy, Malaysia is redefining its role in the global technology landscape.”
The strong demand can be attributed to the heavy use of digital technology in Johor and significantly increased utilization in the Klang Valley by well-known companies such as Microsoft, Amazon Web Services (AWS), Google and Oracle.
Knight Frank Malaysia Group Managing Director Keith Ooi said Malaysia’s strategic efforts in digital infrastructure are not only a blueprint for the region but also a call for global players to seize this unparalleled opportunity.
“The country’s commitment to technological innovation and sustainability makes it a top destination for data center investment and a model of economic resilience,” he said.
Additionally, proactive government measures, including green lanes and corporate renewable energy supply schemes, are critical to shaping a resilient data center ecosystem.
By significantly shortening the duration of electricity supply and promoting the adoption of renewable energy, these initiatives not only enhance Malaysia’s infrastructure readiness, but also highlight the country’s commitment to sustainable development and technological advancement.
Amy Wong, executive director of the research and advisory firm, said this dominance not only strengthens Malaysia's competitive advantage in Southeast Asia but also demonstrates the country's readiness to sustain long-term growth in the digital economy.
The report also noted that Malaysia’s leadership in renewable energy and sustainable data centers sets a precedent for responsible technology development.
By forging strategic partnerships between property developers, data center operators and supply chain companies, Malaysia is creating a dynamic ecosystem that drives industry growth.
Chelwin Soo, director of land and industrial solutions, said: “The synergy between public initiatives and private innovation makes Malaysia a magnet for industrial growth, bringing huge opportunities to local and global players in the coming years.”
Meanwhile, Justin Chee, executive director of valuation and advisory, said a strong focus on sustainability, energy efficiency and innovation will determine the future direction of the country's data center industry.
Chee said Johor has become a major player with its IT capabilities beyond those in the Klang Valley and has driven significant land deals for large-scale data center developments.
“Johor’s rapid development, especially in areas such as Kulai and Iskandar Puteri, has attracted large international operators and created significant opportunities for land acquisition and collaboration,” said Chee.
“In addition, the Klang Valley is still growing, with large data centers planned by companies such as Google and AWS.”
