Malaysia to double its data centre capacity by the end of 2026

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Malaysia is expected to double its data center capacity from 1025 MW in 2025 to 2100 MW by the end of 2026. Johor is the main driver with 1500 MW still under construction, including a 500 MW campus project by YTL in Kulai. So, what should you know about it?

 

There are even plans for an additional 4000 MW across the country

According to a Nikkei Asia report , Johor's position is now becoming stronger, as it is no longer just a spillover market from Singapore, due to its vast land area, proximity to Singapore and good connectivity.

"Johor has clearly grown beyond just being a spillover market," said Sum Chun Kit, JLL Malaysia's capital markets manager, who covers data centre transactions, referring to a trend in recent years where operators have moved away from neighbouring Singapore due to the city-state's land and power constraints.

The surge in artificial intelligence (AI) is a key driver, with new GPU requirements reaching 130 kW per rack, increasing demand for liquid cooling technology and high-performance infrastructure.

“Rack density has increased dramatically, and liquid cooling is no longer an option for future builds if operators want to meet efficiency thresholds,” Sum said.

It was previously reported that Vantage Data Centers had completed their fourth fully leased facility in Cyberjaya, Malaysia. This facility is developed with a closed water system that has almost zero water usage (WUE or Water Usage Effectiveness ), making it one of the most energy-efficient and sustainable data centers.

Previously, the National Water Services Commission (SPAN) had suggested that the development of data centres should take into account the availability of potable water resources in development areas, reducing dependence on treated water supplies and the feasibility of using alternative sources as well as the availability of water supply system infrastructure and related investments.


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