KUALA LUMPUR, Oct 9 — Malaysia’s data centre market is shifting towards higher-value, artificial intelligence (AI)-focused deployments, with Johor remaining the country’s dominant hub despite growing power constraints.
BMI, a unit of Fitch Solutions, said Malaysia had 125 data centre facilities, with 925.6 megawatts (MW) of live capacity, 2.0 gigawatts (GW) under construction and a planned pipeline of 3.1 GW, largely concentrated in Johor.
The market’s initial growth was driven by its proximity to supply-constrained Singapore, but demand has since broadened, supported by hyperscaler commitments, local enterprise workloads, cloud adoption and policy initiatives under the MyDigital blueprint.
BMI said that since 2024, large AI-focused proposals had largely secured approvals, pushing the market towards higher-value and capital-intensive deployments dominated by private-equity-backed platforms such as DayOne, AirTrunk, Bridge DC and Yondr.
