APPD Market Report Article

Kuala Lumpur

March 16, 2023

Yulia Nikulicheva, Head of Research & Consultancy, Malaysia


USD 440


Upgrades and developments attracting foreign investments in DC

  • Phase one of the Sarawak International Internet Gateway involves the Batam-Sarawak Internet Cable System (BaSICS) and IRIS’s own Tier IV DC – improving Borneo’s internet access and ultimately linking Indonesia and Malaysia.
  • Tenaga Nasional Bhd (TNB) has fast-tracked upgrading works at the existing Sedenak main intake substation (PMU) with expectations for it to be a catalyst in the development of the 7,290-acre Sedenak Technology Park, of which Sedenak Tech Park (STeP) is a key component.

Entrance and expansions fueling the supply growth pace

  • Malaysia will be doubling its capacity to approximately 422MW by 2025, upon the completion of ongoing data centre projects, putting the nation in close reach of its forecasted growth.
  • Sedenak Tech Park (STeP) welcomed Bridge Data Centres’ (BDC) phase one of a 100 MW hyperscale data centre spanning across 40 acres, and the MOU signing between JL and Group Sdn Bhd (JLG) and Mitsui & Co (Malaysia) Sdn Bhd to develop a hyperscale data centre.

MyDIGITAL initiative develops Malaysia as an upcoming data hub

  • Launched in July 2022, Malaysia Digital is a new framework designed to accelerate the nation’s digital economy growth, succeeding the previous MSC Malaysia.
  • Of the total approved investments in the information and communications sub-sector from January to September 2022, MYR 60.7 billion (87.7%) came from five ICT services, including three data centre projects by Bridge Data Centres Malaysia III Sdn Bhd, Byte Dance Sdn Bhd, and YTL Power International Bhd.

Outlook: Local and foreign players to elevate DC growth pace

  • The nation’s data centre industry is expected to touch 500MW by 2025, cementing Malaysia’s position as one of the regional data centre hubs.
  • Cyberjaya will continue to grow as the preferred data centre location within Greater Kuala Lumpur; Phase 2 of Sedenak Tech Park (STeP) anchors interest in Johor with further potential growing in Iskandar Puteri as the state’s next DC hotspot.

Note: Kuala Lumpur Data Centres refers to Kuala Lumpur's overall data centre market.

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