Malaysia Artificial Intelligence (AI) Optimised Data Center Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 49.30 Million |
| Market Size (2030) | USD 17.60 Million |
| CAGR (2025 - 2030) | 29.03% |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Malaysia Artificial Intelligence (AI) Optimised Data Center Market Analysis
The Malaysia Artificial Intelligence Optimised Data Center Market size is estimated at USD 49.30 million in 2025, and is expected to reach USD 17.60 million by 2030, at a CAGR of 29.03% during the forecast period (2025-2030).
Malaysia is emerging as a significant player in the AI data center market within Southeast Asia. The country’s strategic location in the ASEAN region, combined with its robust infrastructure and growing digital economy, positions it as an attractive destination for AI-driven data center development. The increasing adoption of AI technologies across industries is further fueling the demand for advanced data center facilities in Malaysia.
The Malaysian government has been proactive in fostering the growth of AI data centers. A total of 21 data center projects have been approved under the Digital Ecosystem Acceleration Scheme since 2021, with a substantial investment of RM 113.8 billion (USD 24.4 billion). These projects are expected to generate 1,244 new job opportunities, contributing to employment and economic growth. Foreign investments account for 90% of the total, amounting to RM 102.3 billion (USD 21.8 billion), while domestic investments make up the remaining 10%, or RM 11.5 billion (USD 2.4 billion). The Ministry of Investment, Trade and Industry (MITI) has also established the Data Centre Task Force (DCTF), co-chaired by the Minister of Investment, Trade and Industry and the Minister of Digital, to regulate and strengthen the data center industry.
The DCTF focuses on policy formulation, stakeholder coordination, and strategies to ensure sustainable growth, while also addressing broader economic benefits such as job creation and skill development. Additionally, the government is working on sustainability guidelines for data centers to meet net-zero emissions by 2050, reinforcing its commitment to a sustainable digital future.
Investments in Malaysia’s AI data center market are on the rise, with significant contributions from global tech giants and local players. Between 2021 and 2023, the country approved RM 114.7 billion (USD 25.6 billion) in data center and cloud services investments, creating over 2,325 high-value jobs. Notable collaborations, such as the partnership between NVIDIA and YTL Power International, highlight the country’s potential as a hub for AI infrastructure. These investments include the development of a large language model in Bahasa Melayu and the deployment of a solar-powered supercomputer at the YTL Green Data Center Park in Johor.
Cyberjaya, a key tech hub, continues to attract hyperscale data center operators, with 15 data centers already established. A major tech company’s second campus in Cyberjaya, with a planned RM 13.32 billion (USD 3 billion) investment, further underscores Malaysia’s importance in the regional data center market. The government’s pro-business policies and focus on digital adoption are expected to drive further growth, positioning Malaysia as a leading data center hub in Asia.
Malaysia Artificial Intelligence (AI) Optimised Data Center Market Trends
Rapid Growth in Hyperscale Datacenters to Meet the Rising Demand for AI Solutions
The rapid growth of hyperscale data centers in Malaysia is driven by the increasing demand for artificial intelligence and cloud computing. Malaysia has become a preferred destination for data center investments due to its strategic location, robust infrastructure, and supportive government policies. Hyperscale providers and technology firms are expanding their operations, significantly increasing data center capacity to meet the rising needs of AI-driven applications and services.
Artificial intelligence is transforming data center requirements, necessitating purpose-built, scalable, and sustainable facilities. AI-ready data centers demand enhanced computing power, storage, and network capacity to support advanced AI models and operations. The shift in AI deployment models, from moving data to the cloud for processing to bringing AI models closer to the data, is further influencing the design and functionality of these centers.
In 2025, Microsoft will launch its first hyperscale cloud region in Malaysia, called Malaysia West, which is scheduled to go live in the second quarter. This region, located in Greater Kuala Lumpur, will provide access to Microsoft's cloud services.
In March 2025, Currence Group Inc., a fintech company specializing in artificial intelligence (AI) solutions for financial institutions, announced plans to establish a 500MW hyperscale Artificial Intelligence Data Center (AIDC) in Johor, Malaysia. The 100-acre facility will be developed in phases, with the first phase of 100MW expected to be operational by the end of 2026. The center will provide co-location and wholesale leasing solutions to meet the growing demand for AI infrastructure in the region.
Malaysia’s data center growth is supported by policies addressing land and water management, as well as data security regulations. These measures ensure that data centers are equipped to handle the complexities of AI operations while maintaining compliance with regulatory requirements. The focus on renewable energy and efficient resource utilization is critical to sustaining the growth of hyperscale data centers in the country.
Focus on Sustainability and Energy Efficiency in AI Datacenters to Support Environmental Goals
Sustainability and energy efficiency in AI data centers are crucial for advancing Malaysia's environmental targets. AI data centers, essential for processing and storing vast amounts of data, are significant energy consumers. Malaysia is emerging as a key data center hub in Southeast Asia, driven by the increasing demand for sustainable cloud computing, artificial intelligence (AI), and machine learning. During the World Energy Efficiency Day roundtable hosted by ABB and MGTC, industry leaders stressed the need for energy-efficient technologies, such as advanced cooling systems and renewable energy integration, to mitigate the environmental impact of data centers. These efforts align with Malaysia's broader sustainability goals, including achieving carbon neutrality by 2050, as outlined in the Energy Efficiency and Conservation Act (EECA) 2024.
Malaysia’s strategic location, cost advantages, and ample land resources make it an attractive destination for green data center investments. Leading technology companies like Google and Microsoft have made substantial investments in Malaysian data center projects, prioritizing sustainable IT infrastructure and eco-friendly data storage. This growth is supported by initiatives such as the Green Lane Pathway, which accelerates power approval processes for sustainable infrastructure. Currently, Malaysia hosts 41 operational data centers, 51 additional facilities under construction in key areas like Cyberjaya, Kuala Lumpur, and Johor. However, the environmental impact of data centers remains a concern due to their high energy demands, particularly for cooling systems and continuous data processing.
The Malaysian government has introduced a Planning Guideline to promote sustainability in data centers, ensuring consistent and effective implementation across states and local authorities. This framework emphasizes five key principles: adopting energy-efficient technologies and renewable energy sources to enhance sustainability, optimizing costs through resource sharing, implementing safety measures for infrastructure and personnel, enabling scalability to accommodate technological advancements, and integrating smart technologies like IoT, machine learning, and automation to improve efficiency.
Malaysia Artificial Intelligence (AI) Optimised Data Center Industry Overview
Malaysia's AI data center market is rapidly evolving, fueled by surging demand for sophisticated digital infrastructure. This infrastructure is pivotal for supporting artificial intelligence (AI), cloud computing, and other burgeoning technologies. Major players, including Intel Corporation, Advanced Micro Devices, Inc., Cisco Systems, ABB Ltd., and Schneider Electric Industries, are at the forefront. These companies are not just expanding their data center capacities but are also harnessing state-of-the-art technologies. This is in direct response to the escalating demands of AI-centric applications and cloud services. Further amplifying this growth is the Malaysian government's proactive initiatives, designed to bolster the nation's AI capabilities and spur innovation. Collectively, these dynamics firmly establish Malaysia as a formidable contender in the global AI data center arena, with promising growth trajectories on the horizon.
In May 2025, Intel announced plans to establish an AI-focused data center in Malaysia, leveraging its advanced Xeon processors and immersion cooling technology. This initiative aims to enhance AI capabilities in the region while promoting energy-efficient and sustainable data center operations. The collaboration with local partners will further strengthen Malaysia's position as a hub for cutting-edge technology and innovation.
Malaysia Artificial Intelligence (AI) Optimised Data Center Market Leaders
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YTL Power DC
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Keppel Data Centres
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TM One
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NTT GDC Malaysia
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Bridge Data Centres
- *Disclaimer: Major Players sorted in no particular order
Malaysia Artificial Intelligence (AI) Optimised Data Center Market News
- May 2025: Wiwynn has partnered with Malaysia's YTL Group to develop a 600MW AI data center complex in Johor, with the first 100MW phase already operational. This collaboration marks Wiwynn's expansion into sovereign AI infrastructure, a growing segment driven by the need for localized data processing amidst geopolitical tensions. The project, co-developed with NVIDIA, will utilize advanced AI technologies, including NVIDIA's SuperPOD architecture, and represents a shift from traditional server manufacturing to full-scale AI cluster integration. Johor, a strategic hub for Southeast Asia's data center growth, now hosts over 20 operational centers, with YTL's site set to further enhance the region's access to cutting-edge AI capabilities.
- November 2024: VCI Global has secured a $30 million investment from Alumni Capital to develop its AI Computing Center (AICC) in Kuala Lumpur, Malaysia, which will house 512 Nvidia H200 Tensor Core GPUs. The first phase of the data center is expected to be completed by Q1 2025, aiming to serve global customers, particularly in Southeast Asia, and foster innovation in AI cloud computing.
Malaysia Artificial Intelligence (AI) Optimised Data Center Industry Segmentation
The research encompasses the full spectrum of AI applications in data centers, covering hyperscale, colocation, enterprise, and edge facilities. The analysis is segmented by component, distinguishing between hardware and software. Hardware considerations include power, cooling, networking, IT equipment, and more. Software technologies under scrutiny encompass machine learning, deep learning, natural language processing, and computer vision. The study also evaluates the geographical distribution of these applications.
Additionally, it assesses AI's influence on sustainability and carbon neutrality objectives. A comprehensive competitive landscape is presented, detailing market players engaged in AI-supportive infrastructure, encompassing both hardware and software utilized across various AI data center types. Market size is calculated in terms of revenue generated by products and solutions providers in the market, and forecasts are presented in USD Billion for each segment.
| By Data Center Type | CSP Data Centers | ||
| Colocation Data Centers | |||
| Others (Enterprise and Edge) | |||
| By Component | Hardware | Power | |
| Cooling | |||
| IT Equipments | |||
| Others | |||
| Software Technology | Machine Learning | ||
| Deep Learning | |||
| Natural Language Processing | |||
| Computer Vision | |||
| Services - (Managed Services, Proffesional Services, etc) | |||
| CSP Data Centers |
| Colocation Data Centers |
| Others (Enterprise and Edge) |
| Hardware | Power |
| Cooling | |
| IT Equipments | |
| Others | |
| Software Technology | Machine Learning |
| Deep Learning | |
| Natural Language Processing | |
| Computer Vision | |
| Services - (Managed Services, Proffesional Services, etc) |
Malaysia Artificial Intelligence (AI) Optimised Data Center Market Research FAQs
How big is the Malaysia Artificial Intelligence Optimised Data Center Market?
The Malaysia Artificial Intelligence Optimised Data Center Market size is expected to reach USD 49.30 million in 2025 and grow at a CAGR of 29.03% to reach USD 17.60 million by 2030.
What is the current Malaysia Artificial Intelligence Optimised Data Center Market size?
In 2025, the Malaysia Artificial Intelligence Optimised Data Center Market size is expected to reach USD 49.30 million.
Who are the key players in Malaysia Artificial Intelligence Optimised Data Center Market?
YTL Power DC, Keppel Data Centres, TM One, NTT GDC Malaysia and Bridge Data Centres are the major companies operating in the Malaysia Artificial Intelligence Optimised Data Center Market.
What years does this Malaysia Artificial Intelligence Optimised Data Center Market cover, and what was the market size in 2024?
In 2024, the Malaysia Artificial Intelligence Optimised Data Center Market size was estimated at USD 34.99 million. The report covers the Malaysia Artificial Intelligence Optimised Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Malaysia Artificial Intelligence Optimised Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Malaysia Artificial Intelligence (AI) Optimised Data Center Industry Report
Statistics for the 2025 Malaysia Artificial Intelligence (AI) Optimised Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Malaysia Artificial Intelligence (AI) Optimised Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
