Data Centre

Budget 2027 sets out RM15bil in grid reinforcement by Tenaga Nasional Berhad, a RM1bil investment by UEM Lestra Berhad and green tax incentives extended to 31 December 2030.

BMI says Malaysia now has 125 data centre facilities with 925.6MW of live capacity, 2.0GW under construction and a 3.1GW planned pipeline, with Johor holding a combined pipeline of 4.1GW.

Manufacturers in the south are moving latency-sensitive workloads closer to the factory floor.

YTL Power International is planning a gigawatt-scale data centre campus at Sedenak Tech Park West on 145 acres from JLand Group, with an option over 400 more acres and a Kulai campus growing to 1,000MW.

ST Telemedia Global Data Centres has secured up to US$1.37 billion in green loan funding for STT Johor, its flagship 166MW campus in Iskandar Puteri, with the first phase due to be completed in 2027.

Alibaba Cloud has launched a public cloud region in Johor with two new data centres, taking its Malaysian footprint to five facilities and adding agentic AI services later in 2026.

Malaysia approved RM92.8 billion in investments in the first quarter of 2026, expected to create 50,226 jobs, with data centres and cloud computing alone accounting for RM34.6 billion across 33 projects.

Johor is creating a data centre framework to guide long-term planning and continuous improvement, with state investment chairman Lee Ting Han saying the state was the first in Malaysia to introduce its own guidelines.

Prime Minister Anwar Ibrahim confirmed in parliament on 24 February 2026 that approvals for data centres unrelated to high technology and AI have been stopped, confirming an informal moratorium in place since mid-2024.