Malaysia gets RM76bil data centre investments

Tengku Zafrul said the digital economy was one of Malaysia’s foremost economic cornerstones, contributing a substantial 23.2% to the gross domestic product or RM348bil in 2021.

ISKANDAR PUTERI: Malaysia has received investments worth RM76bil involving data centres between 2021 and March this year, says Tengku Datuk Seri Zafrul Abdul Aziz.

The Investment, Trade and Industry Minister said this was a big growth that was also supported by several factors in line with the government’s aim to make the country a data centre hub in the Asian region.

“Now, there are many data centres operating in the country but when we look at the growth, it is really big.

“Our target is to become a hub not only for the Asean region, but also in Asia,” he told reporters after officiating at the opening of GDS NTP data centre campus at Nusajaya Technology Park here yesterday.

Tengku Zafrul said factors that drive the growth of data centres include government policies and incentives on renewable energy, land and the existing digital economy ecosystem.

He said this was proven by the commitment of industry players through the electricity supply agreement between Tenaga Nasional Bhd (TNB) and four data centre players involving a total capacity of 1,500 megawatts.

Earlier in his speech, Tengku Zafrul said the digital economy was one of Malaysia’s foremost economic cornerstones, contributing a substantial 23.2% to the gross domestic product or RM348bil in 2021.

“This contribution is expected to reach 25.5% by 2025, or more than RM382bil, which is approximately US$84bil.

“As for the data centre market share in Malaysia, the projection was nothing short of remarkable with an expected average annual growth rate of 16% or US$2.08bil (RM9.36bil) from 2021 to 2026,” he said.

Meanwhile, Tengku Zafrul said his ministry, together with agencies under it, has not held a discussion on the proposed investment involving Saudi Aramco in Kemaman, Terengganu.

He, however, said they were ready to accept suggestions and discuss with the world’s largest oil and gas company.

The minister said Petroliam Nasional Bhd (PETRONAS) and Saudi Aramco already had a joint investment in Pengerang since 2017, involving a considerable amount of US$7bil (RM32bil).

“If they want to go to Terengganu and continue investing in Malaysia, then we at the ministry and Malaysian Investment Development Authority (Mida) will welcome such investment.

“Maybe there is a discussion with PETRONAS but not with the ministry and Mida,” he said.

On Wednesday, Bernama reported that Prime Minister Datuk Seri Anwar Ibrahim had asked Saudi Aramco to invest in Kemaman.

He said Aramco chairman Yasir O. Al-Rumayyan had informed him that the company wanted to make Johor the hub for its expansion in the South-East Asian region.

Anwar also said when Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah performed the Haj recently, King Salman bin Abdulaziz Al-Saud of Saudi Arabia and Crown Prince Mohammed bin Salman bin Abdulaziz Al-Saud informed that the country agreed to make Malaysia its largest investment hub in South-East Asia.