New project to boost Malaysia’s DC boom

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Malaysia

Jabez Tan, head of research at Structure Research, told RCR Wireless News that Malaysia’s recent boom in data center and AI infra investment around Kuala Lumpur and Johor is being driven by a mix of demand-side growth, strategic location advantages, and supportive public policy

In sum – what to know:

New 200MW hyperscale project in Cyberjaya – AIMS will invest about MYR4 billion to build its next flagship data center campus near Kuala Lumpur.

Construction timeline targets 2027 completion – The site is part of Malaysia’s established technology hub, where AIMS already operates a 50MW facility.

Expansion under DigitalBridge ownership – The project follows AIMS’ 2022 acquisition and reflects continued hyperscale-focused growth in Southeast Asia.

DigitalBridge-owned AIMS has acquired a land parcel in Malaysia where it plans to build a new data center campus with 200MW of capacity.

The company said the project will involve about MYR4 billion ($1 billion) in investment, with construction scheduled to be completed in 2027.

The campus will be located in Cyberjaya, a planned technology hub outside Kuala Lumpur. Further details about the specific site were not disclosed. AIMS purchased the land from state-owned developer Cyberview, which was created in 1996 to build the foundational infrastructure for companies operating in Cyberjaya.

The company already runs a 50MW data center in the same area, a facility whose construction began in 2020.

Previously part of telecom operator Time dotCom, AIMS was acquired by DigitalBridge in November 2022. The company provides colocation, disaster recovery, managed services and related support offerings.

Malaysia’s capital Kuala Lumpur is emerging as ley data center markets in Southeast Asia, with rapid growth driven by hyperscale cloud expansion and rising demand for AI infrastructure, according to a previous report by Structure Research.

The independent research firm noted that the Kuala Lumpur data center colocation market was projected to be worth $300 million in 2025 and is expected to reach $1.1 billion by 2030, representing a five-year compound annual growth rate (CAGR) of 31%. The report stated that the expected growth is being fueled by hyperscale cloud deployments, AI-driven workloads, and the city’s proximity to Singapore and Johor.

“Malaysia’s recent boom in data center and AI infrastructure investment around Kuala Lumpur and Johor is being driven by a mix of demand-side growth, strategic location advantages, supportive public policy, and competitive economics — making the country an attractive hub for hyperscale cloud, AI and digital infrastructure across Southeast Asia,” Jabez Tan, head of research at Structure Research, told RCR Wireless News.

“On the demand side, rapid adoption of cloud computing, AI workloads, and digital services by global enterprises and cloud providers is driving the need for more capacity and low-latency infrastructure. Malaysia’s proximity to major regional markets) and connection to dense submarine cable networks offer low-latency links across Southeast Asia — a significant advantage for global cloud providers aiming to serve regional demand with fast connectivity,” the analyst added.

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