Malaysia: Malaysia's Digital Economy Takes Off as Country Ranks 22nd in the World for Data Centers

Malaysia has emerged as a serious player in the global data center market, ranking 22nd in the world and second in ASEAN by the Arcadis Data Center Location Index. This is a significant accomplishment for a country that was once overlooked by hyperscalers. According to Wan Murdani from the Malaysia Digital Economy Corporation (MDEC), progress didn't start until 2010, when the government recognized the importance of data centers in its national economic transformation plan. With the government's backing, MDEC was able to start doing due diligence on the requirements investors look for when venturing into new markets. Murdani explains that MDEC tackled three aspects to get Malaysia on the data center map. The first is attracting digital investments as the leading Investment Promotion Agency (IPA) for digital investments. The second is helping local companies penetrate the regional market, and the third is within global talent. These three ingredients are essential for driving the economy, and MDEC aims to contribute about 25% to the national GDP from digital economic activities.

Murdani further adds that there was never a problem in demonstrating the demand for digital infrastructure in Malaysia. With at least 440 million internet users in ASEAN alone, Malaysia can export digital infrastructure services to neighboring countries, contributing to the massive $3 trillion digital economy's GDP. When MDEC first began promoting this kind of investment, people were skeptical and questioned whether high-value jobs would be created. However, with thousands of servers being brought into Malaysia, there is now a need for people to refresh those servers, engineering services, and companies that can serve the mechanical and electrical requirements of the data center. Additionally, developers are needed to create product services that ride on a data center, creating indirect jobs and the right ecosystem for driving those roles.