The Growth of Data Centres in Malaysia

As more industries go digital and become increasingly tech-driven through evolving AI, one crucial element quietly powering it all behind the scenes is the data centre. With these changes, the need for stronger support systems is growing fast — and that’s where data centres demand is soaring, as they are the digital engine rooms that store, process and manage the data.

Data centres are the backbone behind this technology change in the AI boom, and Malaysia is quickly becoming a hotspot for their growth. Malaysia’s Data Centre Market Growth holds big potential growth with USD4.04 billion in 2024 to USD13.57 billion by 2030.(https://www.mida.gov.my/media-release)

With the rapid growth of AI and its increasing adoption in Malaysia and across the region, the demand for more advanced and sustainable data centres is also rising in tandem.

Rising means good news for Land demands

As the demand for AI continues to surge, it brings great news for certain sectors of the industry. One of them is the real estate industry, especially land and industrial. 

So with the need for high-capacity data centres increasing — guess what would they need first? - Land. Lots of it, in the right locations. Data centres require secure, well-connected plots with strong power supply and cooling infrastructure, often outside city centres but close enough for accessibility. 

In countries like Malaysia, this is creating a ripple effect: boosting land demand, especially in emerging tech zones and industrial parks. It’s also attracting and  drawing in big-ticket investments and infrastructure contracts, as global tech firms and local developers rush to secure prime spots for their next data hub. 

From these developments, what may the result be? It will lead to higher land valuations, new job creation, and a wave of activity in real estate and construction — all thanks to the growing hunger for AI.

As digital infrastructure becomes the backbone of modern business, the strategic placement of data centres is more important than ever. Whether it's planning expansion, land acquisition, or industrial development, securing the right location with future-ready potential is key. 

At PropNex, our dedicated team of Land and Industrial Specialists is ready to assist. Get in touch with Propnex today if there is a need in securing the right location with future-ready potential.

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