APPD Market Report Article

Kuala Lumpur

August 21, 2025

A major hyperscaler intensifies its commitment to Malaysia through a USD 236 million data centre agreement with Gamuda

  • Malaysia’s data centre market is evolving rapidly, driven by AI integration and strategic positioning with abundant resources. Institutional investment and strong fundamentals establish Malaysia as a key player in Southeast Asia’s digital infrastructure.
  • Kuala Lumpur hosts 132 MW of capacity from leaders like Vantage, AIMS, and Bridge DC. The area’s technological ecosystem attracts global operators, while enterprise data centres capitalise on favourable operating conditions.

Equinix has completed the second phase of a new data centre in Cyberjaya, Selangor

  • Strong demand from fully-occupied facilities combined with supply constraints in prime locations has catalysed significant development.
  • The market shows robust growth as hyperscalers expand with networks tailored to local needs, an approach competitors are adopting to optimise digital infrastructure across Malaysia.

Malaysia is emerging as a major hub for data centres as global tech companies are investing heavily in computing infrastructure to support AI

  • This growth trajectory positions Malaysia as an increasingly important regional hub in the evolving data centre landscape.

Outlook

  • For Users
    • Digital infra enable establishing AZs for Hyperscalers.
    • Increasing supply to provide ample deployment options.
    • AI ready facilities to attract global players.
  • For Providers
    • Strong hyperscale demand to support expansion plans.
    • Players with secure power and water infra will be preferred.
    • AI ready DCs to drive future growth.

Note: Rentals rates does not include electricity charges.

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