Malaysia AI Data Center Market Size, Share & Forecast to 2035

The Malaysia AI Data Center Market is valued at USD 1.48 billion in 2026 and is projected to reach USD 5.06 billion by 2035, up from USD 882.91 million in 2025, a CAGR of 19.08% from 2025 to 2035 (DC Market Insights estimate). What sets the pace in Malaysia is access to chips, not land or power: since 14 July 2025 every export, transhipment and transit of high-performance artificial intelligence (AI) chips of United States origin needs a Strategic Trade Permit from the Ministry of Investment, Trade and Industry (MITI), so only 19% of the 440 MW of data center IT capacity Malaysia completed in 2025 went into AI halls, against 30% across Asia Pacific (Source: MITI press statement). Johor carries 74.00% of the money because YTL Power International, part of the Yeoh Tiong Lay (YTL) group, finished a liquid-cooled NVIDIA Corporation (NVIDIA) GB200 NVL72 hall inside its 600 MW Kulai park in October 2025, and AirTrunk and DayOne have more than 890 MW of Johor capacity between them (Source: YTL Power International). The Malaysia AI Data Center Market covers what operators pay for the AI hall itself: power, cooling, shell, fit-out, racks, in-hall network cabling and the services that keep it running, with graphics processing unit (GPU) servers left out. The 2025 receipt is 83.60 MW of new AI halls × USD 9.80 million per MW = USD 819.28 million, plus 10 MW of conversions × USD 4.00 million = USD 40.00 million, plus USD 23.63 million of services on 65.63 MW already running. Operations Services and Software grows fastest at 48.45% a year, and Negeri Sembilan is the fastest-growing region at 39.88% a year as campuses move north of Johor’s water limits.

Key Market Statistics: How Big Is the Malaysia AI Data Center Market in 2026?

DC Market Insights values the Malaysia AI Data Center Market at USD 1.48 billion in 2026, 67.21% above 2025, as new AI IT capacity rises from 83.60 MW to 135.00 MW.

• Market size 2025: USD 882.91 million
• Market size 2026: USD 1.48 billion
• Market size 2030: USD 3.68 billion
• Market size 2035: USD 5.06 billion
• CAGR 2025-2035: 19.08% (low case 15.10%, high case 21.74%)
• Largest component: Electrical Infrastructure, 35.45% of 2025 spend (USD 312.96 million)
• Fastest component: Operations Services and Software, 48.45% a year
• Fastest cooling approach: Immersion Cooling, 31.35% a year; Direct-to-Chip Liquid Cooling reaches USD 3.14 billion by 2035
• Leading region: Johor, 74.00% of 2025 spend; fastest-growing region: Negeri Sembilan, 39.88% a year
• Largest location: Kulai and Sedenak (Johor), USD 291.36 million in 2025
• Largest buyer group: Colocation and Wholesale AI Campuses, 52% of 2025 spend (DC Market Insights estimate)
• Market leader: YTL Power International, about 18% of 2025 spend (DC Market Insights estimate)

Key Takeaways: What Should AI Capacity Buyers Know About Malaysia?

DC Market Insights draws four takeaways from a Malaysia AI data center market that grows from USD 882.91 million in 2025 to USD 5.06 billion in 2035.

• The chip permit, not the grid, held 2025 back: the AI share of new Malaysian capacity was 19% in 2025 against 30% in Asia Pacific, because GPU shipments need a MITI Strategic Trade Permit with 30 days’ notice (Source: MITI, July 2025).
• A Malaysian AI hall costs USD 9.80 million per MW before servers in 2025, about 30% below New Zealand, because Johor campuses of 300 MW and more spread substation and shell costs (DC Market Insights estimate).
• Power is cheap but water is priced: the average base tariff is 45.40 sen per kWh from July 2025, while Johor charges data centers 5.33 Malaysian ringgit (RM) per cubic metre of water from August 2025, so dry coolers and direct-to-chip loops win on cost (Source: Energy Commission; Ranhill SAJ).
• Spend more than doubles after 2026: yearly spend rises by USD 2.20 billion between 2026 and 2030 because 1,131 MW of AI halls are due in that window.

Malaysia AI Data Center Market Summary: What Did Malaysia Spend on AI Halls in 2025?

Malaysia spent USD 882.91 million on AI data center facility infrastructure in 2025. The Malaysia AI Data Center Market size was valued at USD 17.18 million in 2020, reached USD 882.91 million in 2025, and is anticipated to reach USD 5.06 billion by 2035, at a CAGR of 19.08% during the forecast period. From 2020 to 2025 the market grew 119.88% a year from a very small base, as Johor went from a handful of halls to 10 operating data centers by October 2024 and the AI share of new capacity rose from 4% to 19%.

Report attribute	Details
Historical period	2020-2024
Base year	2025
Forecast period	2026-2035
Market size 2025	USD 882.91 million
Market size 2026	USD 1.48 billion
CAGR 2025-2035	19.08%
Market size 2035	USD 5.06 billion
Segments covered	Component, Buyer, Cooling Approach, Workload
Regions covered	Johor, Klang Valley, Negeri Sembilan, Northern Region, East Malaysia and Other States; 12 locations

Growth runs at 9-67% a year from 2026 to 2030 as Kulai, Sedenak, Nusajaya and Elmina energise AI halls, then settles near 6.26% by 2035 as yearly completions level off near 460 MW. DC Market Insights estimates that Malaysia holds about 8.6% of Asia Pacific AI data center facility spend in 2025; the regional picture is in the Asia Pacific AI Data Center Market report.

What Does the Malaysia AI Data Center Market Include, and Where Does It Stop?

The Malaysia AI Data Center Market measures USD 882.91 million of 2025 spend on the physical and operating layer of AI-dense halls in Malaysia, counted where the hall is built.

Included

• Electrical infrastructure for AI halls: 132 kV and 275 kV intake and substations, transformers, switchgear, uninterruptible power supply (UPS) systems, busways and rack power distribution.
• Cooling for racks above about 30 kW: chillers and dry coolers, coolant distribution units (CDUs), rear-door heat exchangers, direct-to-chip loops and immersion tanks.
• Building shell, fit-out and racks for halls designed for AI densities.
• AI network fabric inside the hall: structured cabling, fibre trays and the passive plant that links GPU clusters.
• Operations services and software: maintenance, commissioning, data center infrastructure management (DCIM) and monitoring of installed AI halls.

Excluded

• GPU servers, storage, switches and other IT equipment.
• Land, electricity and water bills, colocation rent and GPU cloud revenue.
• Halls built only for conventional cloud or enterprise racks below about 30 kW, which make up 81% of 2025 Malaysian completions.

How the Segments Fit Together

Component values come straight from the model; buyer, cooling and workload splits each divide the same total, so every dimension sums to USD 882.91 million in 2025 and USD 5.06 billion in 2035. The boundary with the Malaysia Data Center Market report is clear: that report counts the whole national data center market, while this one counts only the AI hall layer, the 19% of 2025 Malaysian completions that DC Market Insights classes as AI halls.

Why Do Malaysia AI Data Center Market Estimates Differ?

The USD 1.48 billion DC Market Insights figure for 2026 counts AI hall facility infrastructure only.

Broader definitions add GPU servers, which cost three to five times the hall per megawatt, plus AI cloud services, AI software platforms, machine learning operations tools and edge AI devices. Some estimates also count every hyperscale or wholesale hall in Johor as “AI” whatever its rack density, which multiplies the base by about five, or count announced investment such as the RM385.7 billion of data center investment MIDA recorded for 2021 to mid-2026 as market value. This report keeps small and medium enterprises (SMEs), government agencies, government-linked companies and university research users in scope when they buy AI hall space in Malaysia.

Element	In this report	Why
AI hall power, cooling, shell and fabric	Yes, USD 859.28 million in 2025	Core physical spend
Operations services and software	Yes, USD 23.63 million in 2025	Recurring spend on installed AI halls
GPU servers and storage	No	IT equipment, counted in server reports
AI cloud and GPU-as-a-service revenue	No	Service revenue, not infrastructure
Conventional halls below 30 kW per rack	No	Counted in the national data center report

Market Drivers: What Is Driving AI Data Center Demand in Malaysia?

Three drivers lift Malaysia AI hall spend from USD 882.91 million in 2025 to USD 3.68 billion in 2030, each tied to a named project or company.

YTL Power’s Liquid-Cooled GB200 Hall and the 1,000 MW Kulai Plan

YTL Power International completed an NVIDIA GB200 NVL72 AI data center at its 600 MW YTL Green Data Center Park in Kulai, Johor, in October 2025 (Source: YTL Power International). In its third-quarter results of 28 May 2026 YTL Power reported 298 MW of data center capacity already contracted and a plan to raise the Kulai park from 600 MW to 1,000 MW, with RM225 million of data center revenue in that quarter alone (Source: YTL Power quarterly release). DC Market Insights puts Kulai and Sedenak at 33% of Malaysian AI hall spend in 2025, the largest location in Malaysia.

Hyperscaler Commitments: AWS USD 6.2 Billion, Microsoft USD 2.2 Billion and Google USD 2 Billion

Amazon Web Services (AWS) launched its Asia Pacific (Malaysia) Region on 21 August 2024 with three availability zones and plans to invest about USD 6.2 billion (MYR 29.2 billion) in Malaysia through 2038 (Source: Amazon press release). Microsoft committed USD 2.2 billion over four years for cloud and AI infrastructure on 2 May 2024 (Source: Microsoft newsroom), and Google broke ground on its USD 2 billion data center and cloud region at Elmina Business Park in Selangor on 1 October 2024 (Source: Google). DC Market Insights counts Hyperscale Cloud Regions at 34.00% of 2025 AI hall spend, USD 300.19 million.

Wholesale Capital for AI Tenants: DayOne’s USD 7.2 Billion and AirTrunk’s RM9.7 Billion

DayOne raised its Johor financing to about USD 7.2 billion on 14 October 2026 and reports more than 478 MW of operating capacity across its Nusajaya and Kempas campuses (Source: DayOne). AirTrunk is investing more than RM9.7 billion in Johor 1 and Johor 2 (JHB1 and JHB2), more than 420 MW of IT load (Source: AirTrunk, February 2025). Colocation and Wholesale AI Campuses hold 52.00% of 2025 spend and grow 19.53% a year to USD 2.73 billion by 2035, because GPU cloud operators lease liquid-ready halls rather than build their own.

Market Trends: How Are Malaysian AI Halls Changing?

Liquid cooling rises from 30% of Malaysia AI data center hall spend in 2025 to 70% in 2035 by DC Market Insights estimates, the biggest design shift in the market.

MITI’s PUE 1.4 Rule Pushes Direct-to-Chip Cooling

MITI’s Guidelines for Sustainable Development of Data Centre set a design power usage effectiveness (PUE) of 1.4 or lower for hyperscale halls above 21.25 MW and a water usage effectiveness (WUE) of 2.2 cubic metres per MWh or lower, and they bind every DESAC tax-incentive application that the Malaysian Investment Development Authority (MIDA) receives until 31 December 2027 (Source: MITI guidelines). Direct-to-Chip Liquid Cooling grows 29.40% a year from USD 238.38 million in 2025 to USD 3.14 billion in 2035, while Air-Cooled up to 30 kW per Rack grows only 4.11% a year.

One Approval Desk: MIDA Becomes the Focal Point

MITI and the Ministry of Digital decided on 21 July 2025 that MIDA approves every new data center project and expansion, according to their joint media release. MIDA recorded RM385.7 billion (about USD 90.64 billion) of data-center-related investment from 2021 to the first half of 2026 and expects demand to exceed 5,000 MW by 2035 (Source: MIDA). One desk shortens the path from land deal to energised hall, which is why the model lifts the AI share of new capacity from 19% in 2025 to 45% in 2028.

Kulai Training Clusters Give Way to Cloud Inference

AI Training takes 55% of 2025 spend because the first GB200 clusters in Kulai were built for model training, but AI Inference grows 22.56% a year to USD 3.04 billion by 2035 as the AWS, Microsoft and Google regions serve Malaysian and Singaporean users.

Market Challenges: What Is Holding Back Malaysia’s AI Data Center Build-Out?

Two constraints could cut 2035 Malaysia AI data center spend to the USD 3.60 billion low case: chip export controls and Johor’s water and power limits.

Chip Export Controls and the Strategic Trade Permit

MITI’s 14 July 2025 statement requires a Strategic Trade Permit for every export, transhipment and transit of high-performance AI chips of United States origin under section 12 of the Strategic Trade Act 2010, with 30 days’ notice, while Malaysia reviews whether to add these chips to its Strategic Items List (Source: MITI). DC Market Insights’s low case cuts new MW by 25% and the AI share by 5 points from 2027, giving USD 3.60 billion in 2035, a CAGR of 15.10%.

Water Prices and Johor Siting Rules

Ranhill SAJ introduced a data center water tariff of RM5.33 per cubic metre in Johor from 1 August 2025, according to Ranhill Utilities, and MITI’s guidelines tell operators to avoid sites with a water stress index of 0.8 or more. At a WUE of 2.2 cubic metres per MWh, one AI megawatt running all year uses about 19,300 cubic metres of water, a bill of about RM102,720 (USD 24,139) a year, small against power but a hard limit on evaporative designs (DC Market Insights estimate).

Market Opportunities: Where Can Suppliers Win in Malaysian AI Halls?

Two openings in Malaysia AI data centers add about USD 1.33 billion of yearly spend by 2035 by DC Market Insights estimates.

Services for a 2,850 MW Installed AI Base

Installed AI capacity rises from 158.25 MW at the end of 2025 to 2,853.65 MW by 2035, so Operations Services and Software grows from USD 23.63 million to USD 1.23 billion, 48.45% a year, the fastest component.

Converting Klang Valley Halls for AI Densities

Equinix completed a 450-cabinet second phase at KL1 in May 2025 and announced Kuala Lumpur 2 (KL2) on 11 May 2026, an investment of more than USD 190 million for more than 2,200 cabinets aimed at AI and cloud growth (Source: Equinix). DC Market Insights models 10 MW of conversions in 2025 rising to 30 MW a year by 2028-2030, worth USD 132.49 million in 2030 at about USD 4.00 million per MW in 2025 prices.

Pricing: What Does an AI Data Center Megawatt Cost in Malaysia?

A Malaysian AI data center hall cost USD 9.80 million per MW of IT load in 2025 before servers, by DC Market Insights estimates, rising 2% a year.

Year	Facility content per AI MW (USD million)	Electrical	Cooling	Shell, fit-out and racks	Network fabric
2020	8.88	3.26	2.63	2.45	0.54
2025	9.80	3.60	2.90	2.70	0.60
2030	10.82	3.97	3.20	2.98	0.66
2035	11.95	4.39	3.54	3.29	0.73

Public anchors bracket that figure. Equinix’s JH2 in Johor costs USD 201 million for 2,225 cabinets, about USD 90,000 per cabinet, and KL2 about USD 86,000 per cabinet, both for conventional densities (Source: Equinix). Data center land in Kota Tinggi sold at RM115 per square foot in November 2025, according to a Crescendo Corporation circular. The average base electricity tariff is 45.40 sen per kWh from 1 July 2025 to 31 December 2027 (Source: Energy Commission), so one AI megawatt at a PUE of 1.4 uses about 12,264 MWh a year, a power bill of about RM5.57 million (USD 1.31 million).

Standards and Regulation: Which Rules Govern AI Data Centers in Malaysia?

Seven rules and standards apply to the USD 1.48 billion of Malaysia AI data center work that DC Market Insights expects in 2026.

• Strategic Trade Act 2010, section 12: a Strategic Trade Permit for high-performance AI chips of United States origin since 14 July 2025, with 30 days’ notice (Source: MITI).
• MITI Guidelines for Sustainable Development of Data Centre: PUE 1.4 or lower for hyperscale, 1.6 for purpose-built colocation, WUE 2.2 cubic metres per MWh, binding DESAC incentive applications until 31 December 2027 (Source: MITI).
• MIDA as the single approval agency for data center projects since the Data Centre Task Force decision of 21 July 2025 (Source: MITI and Ministry of Digital).
• Cyber Security Act 2024 (Act 854), in force since 26 August 2024, sets duties for critical information infrastructure operators (Source: National Cyber Security Agency).
• Personal Data Protection (Amendment) Act 2024: the new cross-border transfer regime applies from 1 April 2025, replacing the whitelist, which keeps regulated AI workloads onshore.
• Energy Commission tariff structure for Regulatory Period 4 (1 July 2025 to 31 December 2027), with separate energy, capacity, network and retail charges by voltage level.
• Design standards: TIA-942 and EN 50600 for facilities, ASHRAE TC 9.9 thermal guidelines for liquid cooling and Malaysian Standard MS IEC 60364 for electrical installations.

Market Segmentation: Which Segment Leads the Malaysia AI Data Center Market?

Electrical Infrastructure leads with 35.45% of 2025 spend, USD 312.96 million, while Operations Services and Software grows fastest at 48.45% a year.

By Component

Electrical, cooling and shell work make up 91% of 2025 spend because new halls dominate; services rise to 24.26% of the total by 2035 as the installed base grows.

Component	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Electrical Infrastructure	312.96	35.45%	1,401.94	16.18%
Cooling Infrastructure	264.44	29.95%	1,159.41	15.93%
Building Shell Fit-Out and Racks	231.72	26.25%	1,044.14	16.25%
AI Network Fabric	50.16	5.68%	228.78	16.39%
Operations Services and Software	23.63	2.68%	1,228.44	48.45%

By Buyer

Colocation and Wholesale AI Campuses lead with 52% in 2025 and 54% in 2035, while Sovereign and Public Sector AI grows fastest at 24.01% a year as government AI workloads move onshore.

Buyer	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Hyperscale Cloud Regions	300.19	34.00%	1,518.81	17.60%
Colocation and Wholesale AI Campuses	459.11	52.00%	2,733.86	19.53%
Sovereign and Public Sector AI	52.97	6.00%	455.64	24.01%
Enterprise and Telecom AI	70.63	8.00%	354.39	17.50%

By Cooling Approach

Air-Cooled up to 30 kW per Rack still leads in 2025 with 46%, but Direct-to-Chip Liquid Cooling becomes the largest approach by 2028 and holds 62% of 2035 spend.

Cooling Approach	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Air-Cooled up to 30 kW per Rack	406.14	46.00%	607.53	4.11%
Rear-Door and Hybrid Cooling	211.90	24.00%	911.29	15.71%
Direct-to-Chip Liquid Cooling	238.38	27.00%	3,138.88	29.40%
Immersion Cooling	26.49	3.00%	405.02	31.35%

By Workload

AI Training takes 55% of 2025 spend, and AI Inference takes 60% of 2035 spend as cloud regions and enterprise AI services scale.

Workload	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
AI Training	485.60	55.00%	2,025.08	15.35%
AI Inference	397.31	45.00%	3,037.63	22.56%

DC Exclusive: The Malaysia AI Campus Pipeline Tracker, 9 Projects and About 3.77 GW

DC Market Insights tracks 9 named Malaysian campuses with about 3,768 MW of announced IT capacity, worth about USD 14.77 billion of AI hall spend if 40% becomes AI halls at 2025 prices. This DC Market Insights estimate is built on 11 inputs: each project’s MW from company releases, plus the 40% AI share and the 2025 content per AI MW.

Project	Operator	Location	IT MW	Status (date)
YTL Green Data Center Park	YTL Power International	Kulai, Johor	600	GB200 hall complete; 298 MW contracted (May 2026)
Sedenak gigawatt campus	YTL Power and JLand	Sedenak Tech Park, Johor	1,200	Land deal announced (Aug 2026)
JHB1 and JHB2	AirTrunk	Johor	420	JHB1 open, JHB2 building (Feb 2025)
Nusajaya and Kempas campuses	DayOne	Johor	478	Operating (Oct 2026)
JHB1	Vantage Data Centers	Johor	300	First facility operating (2026)
Kuala Lumpur, Bukit Jalil and Cyberjaya	EdgeConneX	Klang Valley	300	Planned (Sep 2023)
Iskandar Puteri campus	TM Nxera (Telekom Malaysia (TM) and Singtel)	Johor	200	280 MW power secured; opens 2H 2026
JH1	Princeton Digital Group	Sedenak, Johor	150	Phase One delivered (Jul 2024)
STT Johor 1	STT GDC	Nusa Cemerlang, Johor	120	First 16 MW building under way (Feb 2025)

Johor holds 3,468 MW, 92% of the tracked total, which is why DC Market Insights keeps Johor above 60% of AI hall spend through 2035. The modelled 2026-2030 completions of 2,570 MW of new IT capacity, 1,131.00 MW of it AI, equal about 68% of the tracked pipeline.

Regional Insights: Which Malaysian State Leads AI Data Center Spend?

Johor leads with 74.00% of 2025 spend, USD 653.35 million, and Negeri Sembilan grows fastest at 39.88% a year.

Region	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Johor	653.35	74.00%	3,138.88	16.99%
Klang Valley (Selangor, Kuala Lumpur and Putrajaya)	185.41	21.00%	1,113.80	19.64%
Negeri Sembilan	17.66	2.00%	506.27	39.88%
Northern Region (Penang, Kedah and Perak)	17.66	2.00%	202.51	27.63%
East Malaysia and Other States	8.83	1.00%	101.25	27.63%

Johor

Johor’s USD 653.35 million in 2025 rests on Kulai, Sedenak, Nusajaya and Kempas, where YTL Power, AirTrunk, DayOne and Vantage run the largest halls. Its spend grows 16.99% a year to USD 3.14 billion, though its share falls to 62% as water tariffs and siting rules push some campuses north.

Klang Valley

Selangor, Kuala Lumpur and Putrajaya grow from USD 185.41 million to USD 1.11 billion, 19.64% a year, anchored by Google’s Elmina region and Sime Darby Property’s hyperscale leases of up to RM7.6 billion.

Negeri Sembilan

Negeri Sembilan rises from USD 17.66 million in 2025 to USD 506.27 million in 2035, 39.88% a year, the fastest region, because land near Seremban and Port Dickson sits between the Klang Valley fibre hub and the 275 kV grid without Johor’s water limits.

Northern Region

Penang, Kedah and Perak hold USD 17.66 million in 2025, serving the Penang chip design cluster, and grow 27.63% a year.

East Malaysia and Other States

Sarawak, Melaka and the other states hold USD 8.83 million in 2025 and grow 27.63% a year, led by Sarawak’s hydro-powered sites for public sector AI.

State and Hub Analysis: Where in Malaysia Is AI Hall Spend Concentrated?

Kulai and Sedenak (Johor) carries the most AI hall spend, USD 291.36 million in 2025, and Negeri Sembilan grows fastest at 39.88% a year.

Rank	Location	Region	2025 (USD million)	2035 (USD million)	CAGR 2025-2035
1	Kulai and Sedenak (Johor)	Johor	291.36	1,265.68	15.82%
2	Iskandar Puteri and Nusajaya (Johor)	Johor	211.90	961.91	16.33%
3	Selangor	Klang Valley (Selangor, Kuala Lumpur and Putrajaya)	114.78	759.41	20.80%
4	Kempas and Johor Bahru (Johor)	Johor	105.95	556.90	18.05%
5	Kuala Lumpur	Klang Valley (Selangor, Kuala Lumpur and Putrajaya)	52.97	253.14	16.93%
6	Kota Tinggi and Pasir Gudang (Johor)	Johor	44.15	354.39	23.16%
7	Putrajaya and Cyberjaya	Klang Valley (Selangor, Kuala Lumpur and Putrajaya)	17.66	101.25	19.08%
8	Negeri Sembilan	Negeri Sembilan	17.66	506.27	39.88%
9	Penang	Northern Region (Penang, Kedah and Perak)	10.59	126.57	28.15%
10	Kedah	Northern Region (Penang, Kedah and Perak)	7.06	75.94	26.81%
11	Sarawak	East Malaysia and Other States	5.30	60.75	27.63%
12	Melaka	East Malaysia and Other States	3.53	40.50	27.63%

The four Johor hubs hold 74% of 2025 spend; Iskandar Puteri and Nusajaya adds USD 750.01 million by 2035 as TM Nxera and DayOne fill their campuses. Colocation supply and pricing by state are in the Malaysia Data Center Colocation Market report.

Scenario Analysis: How Could the Malaysia AI Data Center Market Look in 2035?

The Malaysia AI Data Center Market reaches USD 5.06 billion in 2035 in the base case, within a range of USD 3.60 billion to USD 6.31 billion.

Scenario	2035 size	CAGR 2025-2035	Assumption from 2027
Low	USD 3.60 billion	15.10%	New IT MW 25% lower, AI share 5 points lower (chip permits stay slow, Sedenak delayed)
Base	USD 5.06 billion	19.08%	New IT MW 450 (2026) to 460 (2035), AI share 30% to 68%
High	USD 6.31 billion	21.74%	New IT MW 20% higher, prices 5% higher (Sedenak and Kulai expansion both at full size)

The swing factor is the chip permit regime: if Malaysia adds AI chips to its Strategic Items List with fast licensing, the AI share can follow the high case.

Key Players: Who Builds and Buys Malaysia’s AI Data Center Halls?

The top three in the Malaysia AI data center market, YTL Power International, DayOne and AirTrunk, hold about 45% of 2025 AI hall spend by DC Market Insights estimates, measured by AI MW commissioned. Six AI-ready data centre providers in Malaysia offer dedicated high-density facilities for AI training and inference workloads: YTL Power, AirTrunk, DayOne, Vantage, TM Nxera and Princeton Digital Group.

• YTL Power International: about 18% of 2025 spend (DC Market Insights estimate); 600 MW Kulai park, 298 MW contracted, NVIDIA GB200 hall (Source: YTL Power)
• DayOne: about 15% (DC Market Insights estimate); more than 478 MW operating in Johor, USD 7.2 billion financing (Source: DayOne)
• AirTrunk: about 12% (DC Market Insights estimate); JHB1 and JHB2, more than 420 MW (Source: AirTrunk)
• Amazon Web Services: about 8% (DC Market Insights estimate); three availability zones since August 2024 (Source: Amazon)
• Microsoft: about 7% (DC Market Insights estimate); USD 2.2 billion programme from May 2024 (Source: Microsoft)
• Google: about 6% (DC Market Insights estimate); USD 2 billion Elmina data center and region (Source: Google)
• Vantage Data Centers: JHB1, 300 MW across three facilities (Source: Vantage)
• Oracle: public cloud region plan of more than USD 6.5 billion, announced October 2024 (Source: Oracle)
• TM Nxera (Telekom Malaysia and Singtel): 280 MW of power secured in January 2026 (Source: Telekom Malaysia)
• Equinix: Johor and Kuala Lumpur sites, KL2 announced May 2026 (Source: Equinix)
• Princeton Digital Group: JH1 Sedenak, 150 MW campus
• STT GDC: STT Johor 1, 120 MW campus
• EdgeConneX: about 300 MW planned in Klang Valley (Source: EdgeConneX)
• Bridge Data Centres: Johor and Cyberjaya halls
• NVIDIA: GPU and reference-design partner at Kulai (Source: YTL Power)
• Schneider Electric: power and cooling supplier
• Vertiv: power and thermal supplier

The top three leave about 55% to more than 15 other operators and owner-builders. Facility suppliers and contractors are covered in the Malaysia Data Center Infrastructure Market report.

Recent Developments: What Changed in Malaysian AI Data Centers Since 2025?

Six dated events between July 2025 and October 2026 added about 1,480 MW of announced Johor capacity and set the rules for AI chip imports.

• In July 2025, MITI made high-performance AI chips of United States origin subject to a Strategic Trade Permit (Source: MITI).
• In July 2025, MITI and the Ministry of Digital named MIDA the single approval agency for data center projects (Source: MITI and Ministry of Digital).
• In October 2025, YTL Power completed its NVIDIA GB200 NVL72 AI data center at Kulai (Source: YTL Power International).
• In January 2026, TM Nxera secured 280 MW of power from Tenaga Nasional Berhad (TNB) for its Iskandar Puteri campus (Source: Telekom Malaysia).
• In August 2026, YTL Power and JLand announced a campus of up to 1.2 GW at Sedenak Tech Park (Source: YTL Power International).
• In October 2026, DayOne raised its Malaysia financing to about USD 7.2 billion (Source: DayOne).

Methodology: How the Model Values the Malaysia AI Data Center Market

DC Market Insights built the Malaysia AI Data Center Market from 16 yearly capacity cohorts (2020-2035) and 9 named projects, with every split summing to the total.

The 2025 receipt: 83.60 AI MW × USD 9.80 million = USD 819.28 million, plus 10 MW of conversions × USD 4.00 million = USD 40.00 million, plus 65.63 MW installed × USD 0.36 million = USD 23.63 million, for USD 882.91 million. New IT capacity follows 220 MW (2024), 440 MW (2025), 450 MW (2026), 520 MW (2030) and 460 MW (2035), taking Malaysia from about 560 MW of operating IT load at the end of 2024 to about 1,000 MW at the end of 2025 (DC Market Insights estimate); the AI share rises from 19% to 68%. Three bound checks:

• Ceiling 1: installed AI capacity of 2,853.65 MW in 2035 is 57% of the more than 5,000 MW of data center demand MIDA expects by 2035.
• Ceiling 2: 2025-2026 spend of USD 2.36 billion is about 2.6% of the RM385.7 billion (USD 90.64 billion) of data-center-related investment MIDA recorded for 2021 to mid-2026.
• Floor: modelled shell, fit-out and rack spend of USD 1.15 billion in 2025-2027 is above the RM3.40 billion (USD 0.80 billion) of two named hyperscale shell contracts alone, IJM Construction’s RM1.26 billion for Elmina DC2 and Gamuda’s RM2.14 billion for Eco Business Park V.

Ringgit are converted at USD 0.235. The full method is on the research methodology page.