KUALA LUMPUR, Oct 26 — Malaysia is well positioned to play a key role as a regional data centre hub if it can maintain its competitive advantage, Moody’s Ratings said.

It said Malaysia’s competitive advantage stems from competitively priced, readily available power and supportive government initiatives.

Moody’s Ratings assistant vice president - ratings Chelsia Ng said the country’s policy framework and approval requirements already focus on data centre efficiency, with eligibility for tax incentives under the Digital Ecosystem Acceleration (DESAC) scheme linked to power and water efficiency benchmarks.

“Johor, which houses most of the country’s data centre capacity, also applies more stringent requirements for project approvals.