Malaysia is emerging as a key destination for regional data centre investments, as the industry experiences a paradigm shift driven by the exponential rise of artificial intelligence (AI), cloud computing, and digital transformation.
In early 2024, this momentum translated into significant investments in land deals, construction contracts, and utility upgrades, underpinned by supportive government policies and a rally in the technology, construction, and property sectors.
However, in January 2025, new export controls imposed by the United States on advanced AI chips triggered global supply chain disruptions and heightened tech market volatility. These developments have prompted multinational tech giants to diversify their data centre strategies and seek out stable, neutral markets, placing Malaysia in a strategically advantageous position with fresh interest in the country’s data centre ambitions.
Against this complex backdrop, Hong Leong Investment Bank (HLIB) and Bursa Malaysia co-hosted the 19th edition of the Bursa Malaysia-HLIB Stratum Focus Series, themed “Data Centre 2.0: The Ecosystem and What’s Next for Malaysia?”, held at the Exchange Square.
The forum brought together key voices from government, industry and infrastructure, including Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of the Malaysian Investment Development Authority (MIDA); Kent Seet Tiong Hong, Director of Data Centre Transactions at JLL Malaysia; Wong Heng Wai, CEO of IJM Construction; Dato’ Toh Eng Keat, Managing Director of MN Holdings; and Tee Kok Hwa, Executive Director and CEO of Master Tec Group.
The panel shared insights on infrastructure scalability, grid readiness, policy direction, sustainability, and Malaysia’s role in the region’s broader AI and digital transformation agenda.
In her opening address, Group Managing Director and CEO of HLIB, Lee Jim Leng, highlighted how global developments, including US-imposed restrictions on AI chip exports, will potentially accelerate a new era of digital infrastructure investment in Southeast Asia.
“Malaysia is entering the age of Data Centre 2.0, a phase where the focus shifts from basic co-location services to advanced, high-performance computing infrastructure that supports AI workloads, green innovation, and data sovereignty.
“With RM6.7 billion in approved investments and another RM3.9 billion currently in advanced hyperscale discussions, Malaysia is no longer a peripheral player in the region, and should now be positioning itself as a key digital infrastructure hub,” she said.
As a key fundraising platform, Bursa Malaysia continues to facilitate businesses’ access to capital markets to expand, supporting national economic growth.
Dato’ Fad’l Mohamed, CEO of Bursa Malaysia said, “Malaysia’s growing prominence in the data centre and digital infrastructure space reflects the confidence global players have in our economy’s stability and long-term potential. As demand for AI and high-performance computing accelerates, capital markets will play a vital role in financing the next wave of infrastructure growth.
“At Bursa Malaysia, we are focused on strengthening our marketplace to attract long-term, technology-driven investments that will support Malaysia’s intent to remain as a competitive economy and a leader in ASEAN.”
In 2024, Malaysia managed to capture 38% of all new data centre investments in ASEAN, with projections set to surpass 40% by next year, according to industry data. Robust momentum is further reflected in the RM2 billion worth of data centre construction contracts awarded in the first half of the year.
Major global technology companies, such as Google, Microsoft and AWS, have already deepened their commitments to Malaysia, recognising its stability, policy direction, and infrastructure potential as key differentiators.
Commenting on future developments, Le said: “Malaysia must strengthen its position as a neutral, stable, and indispensable hub for data and AI development. This includes implementing smart policies that support local AI innovation, protect data sovereignty, and promote the development of energy-efficient, sustainable data centres.
“Additionally, deeper collaboration between government, industry players and academia will be key in ensuring Malaysia develops long-term competitiveness in high-performance digital infrastructure.
The transition to Data Centre 2.0 is both a challenge and an opportunity. With the right strategies, Malaysia can turn global uncertainty into national advantage and solidify its leadership as a regional data centre hub in ASEAN.”
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