Malaysia’s data centre industry drives real estate growth

Kuala Lumpur and Johor being key locations in Malaysia are attracting the interest of a wide range of investors 

The demand for industrial real estate in Penang remains strong. ESBProfessional/Shutterstock

Malaysia’s data centre business is projected to continue its growth trend. As noted by New Straits Times, it has had significant impact on the local real estate sector, as cloud service providers, such as Microsoft and Amazon, and other globally prominent data centre operators such as Vantage Data Centres and Bridge Data Centres, witness significant demand. 

The boom in data centre demand has aroused the interest of a wide range of investors, including growth capital, buyout, real estate, and infrastructure investors. According to DCByte Ltd managing director (Apac) James Murphy, much of the take-up in the Malaysian market is due to the expansion of data centres in Kuala Lumpur and Johor. 

Johor is becoming an increasingly important location for data centres in Malaysia, as an alternative hub for Southeast Asia, due to its close proximity to Singapore, favourable support from local authorities, and availability of land and power. 

Related: Expansion of Malaysian industrial sector is in the works

According to Professional Knowledge Resource Mondaq, a state in northern Malaysia called Penang, is a leading industrial and economic centre in the country as well. It has a well-developed infrastructure, supportive government policies, and skilled workforce, which make it an attractive destination for businesses seeking to expand their operations in the Southeast Asian region. 

Penang has a diverse range of industries, including electrical and electronics, semiconductor, medical devices, and aerospace. The state boasts a significant manufacturing and industrial area, with various types of facilities and infrastructure to support businesses, including industrial estates, technoplex areas, and Free Industrial Zones (FIZ). 

The demand for industrial real estate in Penang remains strong, driven by its strategic location, favourable business climate, and well-developed supply chain networks. Several factors make Penang an attractive location for businesses to start their manufacturing or industrial operations, including its strategic location, well-developed transportation and logistics infrastructure, skilled workforce, and favourable business climate. Penang has set up the GBS Focus Group Penang Chapter as a platform for industry players to share information, ideas and offer consultation to businesses.

The Property Report editors wrote this article. For more information, email: [email protected].