As of 2025, Malaysia hosts a dynamic and rapidly expanding data center ecosystem, reflecting its strategic position as a digital infrastructure hub in Southeast Asia. The number of data centers in the country varies across different sources.
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Number of data centers in Malaysia
As of 2025, Malaysia hosts a total of 125 operational data centers, according to Baxtel. These facilities are distributed across various regions, with the majority located in Kuala Lumpur and Johor. Kuala Lumpur leads with 65 data centers, while Johor follows with 47. Additionally, there are 18 data centers under construction in Kuala Lumpur and 15 in Johor, indicating ongoing growth in the sector.
Key Data Center Hubs in Malaysia
- Cyberjaya: Often dubbed Malaysia’s “Silicon Valley,” Cyberjaya is home to 36 data centers, serving as a central node for cloud and enterprise services.
- Johor Bahru: With 29 data centers, Johor is rapidly emerging as a major data center hub, attracting investments from global tech giants like Microsoft and Google.
- Kuala Lumpur: The capital city hosts 25 data centers, primarily catering to domestic enterprises and government services.
- Other Regions: Cities such as Shah Alam, Bayan Baru, and Kuching also contribute to the national data center landscape, albeit on a smaller scale.
Key Data Center Projects in Malaysia to Know in 2025
- Microsoft’s Malaysia West Cloud Region
Microsoft is set to launch its first cloud region in Malaysia, comprising three hyperscale data centers located in Greater Kuala Lumpur and Johor. This initiative is part of a US$2.2 billion investment aimed at enhancing the country’s cloud and AI capabilities. The project is expected to generate approximately 37,575 jobs and contribute about 16.9% of Microsoft’s projected US$10.9 billion in revenue from Malaysia by 2028.
- Google’s Data Center Development in Port Dickson
Google has acquired a 389-acre site in Port Dickson for the development of its first data center in Malaysia. This MYR1 billion (approximately US$233.7 million) project is part of a broader US$2 billion investment in the country, which also includes the establishment of a Google Cloud hub in Selangor. The initiative aims to support Malaysia’s “Cloud First Policy” and is projected to contribute US$3.2 billion to the economy and create 26,500 jobs by 2030.
- Alibaba Cloud’s Third Data Center in Malaysia
Alibaba Cloud has launched its third data center in Malaysia, further expanding its presence in Southeast Asia. This development is part of a broader strategy to enhance AI and cloud services in the region, addressing the increasing demand for secure and scalable infrastructure. The new facility underscores Alibaba Cloud’s commitment to strengthening its service capabilities in Malaysia.
Future Outlook for Malaysia’s Data Center Market
Malaysia is positioning itself as a regional leader in data center infrastructure. With substantial investments from global tech companies and supportive government policies, the country is on track to become one of the top data center markets in Asia Pacific. However, this growth must be balanced with sustainable energy practices and resource management to ensure long-term viability.