MIDA Charts Next Phase for Malaysia's Data Centre Sector: From Attracting Investment to Building Value for SMEs and Malaysians

KUALA LUMPUR, Sept 14 (Bernama) -- The Malaysian Investment Development Authority (MIDA) today brought together government, industry and investment stakeholders at Data Centre Nexus (DCN) 2026 to advance Malaysia’s digital infrastructure ecosystem and explore opportunities arising from the rapid growth of artificial intelligence (AI), cloud computing and data centres.

Held for the second consecutive year under the theme “Advancing AI-Driven Digital Infrastructure and Sustainable Ecosystems,” this event convenes data centre operators, technology companies, government agencies, financial institutions and Malaysian supply chain companies to discuss the next phase of Malaysia’s evolving data centre ecosystem. 

The event featured a keynote address by YB Tuan Sim Tze Tzin, Deputy Minister of Investment, Trade and Industry (MITI), with Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Chairman of MIDA, delivering the luncheon remarks and Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, delivering the welcoming remarks.

From Investment to Economic Value

In his keynote address, YB Tuan Sim Tze Tzin highlighted the need for Malaysia’s digital infrastructure growth to translate into broader economic outcomes, particularly in AI adoption, home-grown innovation, skilled talent and higher-value jobs.

“As the scale and pace of investment increase, our priorities must evolve with the industry. The next phase is about what that capacity delivers — AI adoption, homegrown innovation, skilled talent and higher-value jobs. We want Malaysia recognised as a competitive, resilient and sustainable digital hub, where infrastructure, technology, talent and innovation converge to create high-value economic activity. The next phase must carry us from building capacity to building capability, from attracting investment to creating value, and from single projects to a whole ecosystem. Ultimately, our success will be measured not by the investment or capacity we attract, but by the capabilities we build, the businesses we strengthen and the opportunities we create for Malaysians.”

Malaysia has recorded RM385.7 billion in data-centre-related investments from 2021 to the first half of 2026, reflecting strong investor confidence in the country’s digital infrastructure capabilities. Major global operators and investors, including AWS, Microsoft, Google, Bridge Data Centres, DayOne, AirTrunk and Vantage Data Centres, have established or expanded their presence in Malaysia, particularly in Greater Kuala Lumpur and Johor.

For Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, the opportunity extends beyond the physical development of data centres to the wider economic spillover that can be built around them.

“Data centres are a critical driver of our digital and compute economy, but their true measure of success lies well beyond the data halls themselves. Attracting investment was only ever the first step.  Our responsibility now is to build an industry that is sustainable, inclusive and enduring. Ultimately, we will not measure our success by the scale of investment we attract, but by the value we build around it – stronger Malaysian businesses, deeper local capabilities, and lasting opportunities for our people.”

The wider ecosystem spans engineering, construction, electrical systems, cooling, telecommunications, cybersecurity and logistics, creating opportunities for Malaysian companies to strengthen capabilities and participate in the ecosystem.

Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid emphasised that MIDA’s focus is increasingly centred on building an ecosystem that can capture greater value from the sector’s growth.

“This year, we are not only asking how we grow the industry, but how we create lasting value for Malaysia. AI is advancing at remarkable pace, and it rests on a foundation of computing power and digital infrastructure — yet that growth must be matched by responsibility, in how carefully we manage our energy, water and land, and in the capabilities, we build here at home. In the end, our goal is simple: we do not just want more data centres in Malaysia. We want an ecosystem that is competitive, innovative and sustainable.”

A Programme Built on Four Strategic Priorities

Building on the discussions from DCN 2025, this year’s programme focused on four strategic pillars shaping Malaysia’s next phase of digital infrastructure development:

1. AI-Driven Digital Infrastructure – strengthening compute capacity, connectivity and financing to support the growing demand for AI and digital services.
2. Sustainable and Resource-Efficient Infrastructure – advancing energy efficiency, renewable energy adoption, water stewardship and responsible data centre operations.
3. Local Ecosystem and Industrial Spillovers – strengthening domestic supply chains, creating skilled jobs and enabling Malaysian companies to build capabilities across the digital infrastructure value chain.
4. Digital Technology Accessibility – expanding cloud and digital technology across businesses and communities to support wider participation in the digital economy.

The programme featured industry discussions including “Building Malaysia’s Compute & Connectivity Future,” with representatives from Google, Bridge Data Centres, YTL AI Labs, Indah Water Konsortium and Tenaga Nasional Berhad.

The session “Developing Malaysia’s Data Centre Supply Chain & Industrial Ecosystem” brought together Cipta Industrial, Powerwell Holdings Berhad and Delta Electronics Solutions to discuss opportunities for Malaysian manufacturers to strengthen their capabilities in supporting the ecosystem.

Sustainability was explored through “Green Solutions for Sustainable Data Centre Operations,” featuring Princeton Digital Group, Digital Realty, Gading Kencana and Northern Solar Holdings Berhad, while “Financing Malaysia’s Digital Infrastructure Future” examined financing solutions with Citi and AmBank Group.

Afternoon sessions continued discussions on compute and connectivity, domestic supply chains, green energy and resource efficiency, and cloud and digital technology adoption, before concluding with the Executive Spotlight Series on the evolving cloud and compute landscape.

Connecting Global Players with Malaysian Businesses

A dedicated Business Matching session provided a platform for data centre companies and Malaysian businesses to explore potential partnerships and supply chain opportunities.

Following the inaugural DCN in 2025, which connected 8 data centre companies, and 17 supply chain companies, the 2026 session further strengthened linkages between global players and Malaysian businesses, with 14 data centre companies and 51 local vendors participating.

The key ecosystem companies participating included critical equipment manufacturers such as Panasonic, Delta Electronics, Dunham-Bush, Powerwell International, Cipta Industrial as well as service providers across the data centre value chain, including Gading Kencana, Ancom Energy, Northern Solar and Ditrolic Energy. 

Building a Sustainable Digital Infrastructure Ecosystem

With data centre electricity demand projected to exceed 5,000 MW by 2035, sustainability remains central to the sector’s development. The Government has strengthened sustainability requirements through Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE) metrics, alongside renewable energy initiatives including the Corporate Green Power Programme (CGPP), Large Scale Solar (LSS) and Corporate Renewable Energy Supply Scheme (CRESS).

The Data Centre Task Force (DCTF), co-chaired by MITI and the Ministry of Digital, provides a coordinated mechanism to govern and facilitate data centre investments, with MIDA serving as the single focal point for new and expansion applications.

As the nation’s principal investment promotion and development agency, MIDA facilitates investments throughout the investment journey and, through #InvestLokal initiative, strengthens linkages between global investors and Malaysian businesses to expand local participation and build stronger domestic capabilities.

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA partners with investors at every stage of their journey, supporting sustainable growth and long-term value creation for Malaysia. For more information, please visit www.mida.gov.my/ and follow MIDA on X, Instagram, Facebook, LinkedIn, TikTok and YouTube.

Please see the image and caption in the press kit below: