How much capacity are Malaysian data centres expected to add in three years?

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Malaysian Data Centres Poised for Significant Capacity Growth

Malaysian data centres are projected to add approximately two gigawatts (GW) of capacity over the next three years. This expansion is anticipated to necessitate substantial funding for powered shells and associated equipment, estimated to exceed US$20 billion.
Projected Capacity Expansion

The anticipated addition of around two gigawatts of capacity signifies a considerable increase in Malaysia's data centre infrastructure. This growth is a key driver for the projected funding requirements over the upcoming three-year period.
Funding Requirements for Infrastructure

The US$20 billion funding estimate specifically covers powered shells and equipment. This includes the physical facility structures, essential power and cooling systems, as well as networking and storage hardware necessary for data centre operations.
Impact of Chip Costs on Funding Needs

When the cost of semiconductor chips is factored in, the total funding requirements could escalate significantly. Depending on the sophistication of the chips, their cost can range from one to four times that of the powered shell itself, potentially pushing overall capital needs beyond current domestic banking sector concentration limits.
Malaysia's Competitive Position Amidst Rising Costs

Despite an erosion in cost competitiveness, particularly concerning power expenses which are now slightly above regional averages, Malaysia's strategic location is expected to maintain its appeal for data centre development. While construction costs are comparable to other regional markets, the overall demand is unlikely to be solely dictated by cost differentials.

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How much capacity are Malaysian data centres expected to add in three years?

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