Malaysia: Data center revenue to surge next year

Malaysia is expected to rake in MYR3.6 billion (over $812 million) in revenue from the data centre industry next year, up from the MYR 2.09 billion in 2022 as the rapid growth of data centers, particularly in the Klang Valley and Johor state, is creating new jobs and boosting the development of its manufacturing sector.

The growth of data centers in Malaysia is poised to generate significant indirect job opportunities across various sectors, including manufacturing, construction and logistics, Malaysia Digital Economy Corporation (MDEC) chief executive officer Mahadhir Aziz told the press in a recent interview.

He went on to say that the development of data centers requires the involvement of many enterprises, with a wide range of engineering roles such as design, planning and construction.

Malaysia is experiencing an increasing demand for materials, components and technology required for data center construction and maintenance, thereby boosting the local manufacturing industry.

According to Mahadhir, data centers will also require non-technical roles in human resources, finance and project management, as well as environment, health, and safety.

Malaysia’s education and vocational training institutions play a critical role in forecasting the demand for highly skilled workers for data centers and related manufacturing industries, ensuring that the curricula are updated with industrial demand. This alignment will help the country prepare the necessary workforce, thereby supporting the rapid expansion of data centers.

In recent years, several global tech giants like Google, Amazon Web Services (AWS) and Microsoft have mooted plans to develop cloud computing infrastructure in Malaysia, with AWS looking into a long-term investment of up to $6 billion up to the year 2037.

Earlier this month, Deputy Communications Minister Teo Nie Ching said that from 2021 to March 2024, the Ministry of Investment, Trade and Industry has approved a data center-related investment worth MYR 76 billion through the Malaysian Investment Development Authority, thereby attracting more companies to invest in the digital economy and data centres.