Malaysia is emerging as a data center powerhouse amid booming demand from AI

Malaysia is rapidly becoming a data center hub in Southeast Asia, with billions in investments from tech giants like Google, Nvidia, and Microsoft, particularly in Johor Bahru. This city, once with minimal data center presence, is set to surpass Singapore in data center capacity. Malaysia’s rise is fueled by the global surge in cloud computing and AI demand, favorable policies, and lower costs for space and energy. However, concerns over resource strain, especially on energy and water supplies, are prompting local authorities to enforce stricter green energy guidelines. Despite Singapore’s efforts to expand its green data centers, Malaysia’s advantages make it a key emerging market in the region.