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- Key hotspots include Johor, Bukit Jalil, and Cyberjaya, where a surge in construction activity is expected to continue into the coming years.
KUALA LUMPUR (Nov 4): Malaysia’s data centre sector is entering a strategic consolidation phase as it integrates substantial new capacity while major infrastructure upgrades take shape, said JLL Malaysia data centre transactions and capital market manager Sum Chun Kit.
Sum said that the country’s total installed data centre capacity currently stands at 835MW, with projections to exceed 2,850MW by 2026 and more than 4,000MW beyond 2030.
"This will turn Malaysia into one of the biggest data centre markets in Asia-Pacific," he said following JLL Malaysia’s third quarter (3Q) market report briefing here on Tuesday.
Key hotspots include Johor, Bukit Jalil, and Cyberjaya, where a surge in construction activity is expected to continue into the coming years.
He noted that Tenaga Nasional Bhd (TNB)’s ongoing grid enhancement and investments into transmission infrastructure are crucial to supporting Malaysia’s rising energy needs.
“The issue is not about power generation capacity but transmission—how to bring power efficiently to sites. TNB has been proactive in upgrading the grid to allow more power injection,” he said.
Sum added that while energy availability remains a key consideration for site selection, fibre connectivity, weather conditions, and water resources are increasingly shaping investment decisions.
“Water remains critical for cooling systems. Some operators are now partnering with local utilities to develop on-site water treatment and recycling facilities,” he highlighted.
On competitiveness, he observed that Malaysia’s data centre construction market remains highly contested, with a handful of large players such as Sunway Construction dominating major design-and-build contracts, while smaller local firms continue to upskill.
JLL Malaysia itself leverages its UK-based project management expertise to strengthen local capabilities in data centre design and delivery.
Sum also pointed out the growing influence of AI-driven workloads, which are expected to be a key demand driver for data centres moving forward.
“We’re seeing increasing investment in AI factories and facilities focused on machine learning and automation. These workloads require far greater computing power—a single AI search can consume up to 10 times more energy than a regular one,” he said.
As for sustainability, Sum pointed to the government’s ongoing policy efforts—including the Corporate Green Power Programme (CGPP) and Crest Scheme—that enable data centre operators to procure renewable energy directly from solar developers. The upcoming Sustainable Data Centre Framework and innovation in water management, he added, will further reinforce Malaysia’s appeal as a regional digital hub.
Overall, JLL expects Malaysia’s data centre markets to remain on a sustainable growth trajectory, driven by continued infrastructure investments, renewable energy adoption, and the maturing of the country’s digital economy.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
