Indonesian minister explains why foreign investors prefer data centres in Malaysia

JAKARTA: Indonesian Minister of Communication and Information Budi Arie Setiadi (pic) has highlighted key factors contributing to foreign investors' hesitation to invest in the republic’s data centre sector, noting that many prefer to establish facilities in Malaysia, especially in Johor.

He said investments in Johor’s data centres, which support artificial intelligence (AI) and cloud computing, are projected to reach US$3.8 billion this year, citing a Maybank report. Malaysia offers three key advantages: competitive electricity prices, tax exemptions, and legal certainty, making it a more attractive destination for foreign investors.