KUALA LUMPUR: Malaysia’s data centre (DC) industry is currently financed by banks, but as the sector matures, it is expected to increasingly turn to the debt capital market to raise funds via bonds and sukuk.
In that respect, Malaysian Rating Corp Bhd (MARC) is proactively preparing the ecosystem for this transition.
MARC group chief executive officer Arshad Mohamed Ismail told StarBiz: “At present, banks are actively funding the industry, and we continue to see strong support from the banking market.
“However, we believe that over time, the sector will naturally migrate to the debt capital market as part of its financing life cycle. Our decision to develop a dedicated DC methodology, therefore, is intended to provide thought leadership and prepare the debt capital market for eventual issuances by DC operators.”
Arshad Mohamed said for the ecosystem to function effectively, both investors and issuers need a clear understanding of expectations and credit considerations, adding that engagement with prospective issuers has already started, even if they are not yet ready to come to market.
Speaking at the group’s Lead Managers’ League Table Awards 2025 yesterday, Arshad Mohamed highlighted that MARC had introduced Malaysia’s first dedicated rating methodology for DCs in 2025.
The rating framework recognises the growing significance of digital infrastructure as an emerging asset class, supporting the financing needs of one of the country’s fastest-growing sectors, he noted in a statement.
He said the DC sector’s long-term sustainability will depend on demand conditions and access to critical resources such as energy and water.
MARC noted its continued support for the development of Malaysia’s capital market through its broader ecosystem of businesses.
Arshad Mohamed said Malaysia’s capital market grew to a record RM4.3 trillion, underpinned by the continued confidence of issuers and investors in the depth and stability of the market.
He noted that total funds raised through the capital market increased by 35.4% to RM187.7bil, reflecting the capital market’s role in bolstering economic activity, business expansion and long-term investment.
“Malaysia’s capital market has underscored resilience and strength in the face of an increasingly complex global environment, marked by geopolitical tensions, evolving trade policies and market volatility,” he pointed out.
Arshad Mohamed said the market’s growth was underpinned by robust capital-raising activity across both the debt and equity markets, highlighting the capital market’s continued ability to meet the diverse financing needs of businesses and institutions.
