Data Centres in Malaysia Require US$20bil in Funding!

 

Data centres in Malaysia are estimated to require over US$20 billion (US$1=RM4.09) in funding for powered shells and equipment over the next three years. This is based on the estimated capacity addition of around two gigawatts (GW), according to S&P Global Ratings.

Powered shells and equipment include the facility shell, power and cooling infrastructure, and networking and storage equipment. S&P Global Ratings said the funding quantum runs higher when chips are included – possibly one to four times the cost of the powered shell, depending on the type of chips used. S&P Global Ratings said data centre projects in Malaysia are therefore reaching an inflection point.

Source: https://wikilabs.asia

They may be able to depend mostly on bank loans and equity but will need to explore alternative capital sources soon. S&P Global Ratings (S&P) also said Malaysia’s cost competitiveness has eroded, with power costs now slightly above average versus Southeast Asian peers. Construction costs remain average against other key data centre markets in this region. However, Malaysia’s strategic location remains its largest advantage according to S&P. 

S&P expects Malaysia to overcome the execution challenges to become one of Southeast Asia’s largest data centre hubs, nearly tripling capacity by 2030. Proximity to Singapore, strong connectivity and growing power and water capacity should keep Malaysia competitive despite rising costs and tighter approvals. 

That’s good news for banks but ultimately it will be shareholders, business model and repayment capacity of those data centres that will determine whether financing moves forward. 

Reference:

Data centres in M’sia estimated to need US$20bil funding over next 3 years, Bernama/FMT, 20 July 2026