Malaysia’s Data Centre Growth Remains Strong Despite Rising Energy Costs

From this article, I learned that Malaysia’s data centre industry is still expected to grow, even though energy prices are increasing due to global factors like the ongoing Middle East conflict. Higher costs for natural gas and coal are pushing electricity prices up, which affects energy-intensive operations such as data centres.

However, analysts believe these higher costs are still manageable. Compared to other countries, building and operating data centres in Malaysia remains relatively affordable. Even if construction materials become more expensive, this is a global issue, so Malaysia is not at a disadvantage.

I also learned that the government has adjusted electricity tariffs, meaning heavy energy users like data centres may face higher bills, especially because they operate 24/7. Despite this, demand for data centres continues to be strong, driven by global technology companies investing heavily.

Research firms expect the data centre boom in Malaysia to continue for at least the next two years, with construction projects potentially reaching around RM21 billion annually. Overall, the construction sector is likely to stay active and growing, supported mainly by data centre developments.

 

08 Apr 2026


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