- Malaysia attracted approximately US$44 billion in data centre-related projects between 2021 and 2024, with total digital investments reaching US$65 billion during the same period.
- In February 2026, residents of Iskandar Puteri in Johor protested against the construction of a 300-megawatt data center complex, marking Malaysia's first public resistance to a data center project.
- The OECD reported that Malaysia's data centre boom is straining electricity and water supplies while creating relatively few jobs.
- Johor has attracted US$35 billion in data centre investments, particularly as Singapore's earlier moratorium pushed capacity across the border.
- The OECD noted that while the industry is boosting growth and investment, it creates only a limited number of jobs compared to the scale of investment.
- The OECD stated that Malaysia is seeking to leverage the data centre industry to create high-skilled jobs in engineering, cybersecurity, and data management.
Malaysia's data centre industry is experiencing significant growth, attracting approximately US$44 billion in projects from 2021 to 2024, as reported by the OECD. However, this boom is not without its challenges.
In February 2026, residents of Iskandar Puteri in Johor protested against a 300-megawatt data center complex, marking the first public resistance to such projects in the country. The OECD highlighted that while the data centre sector is driving economic growth and investment, it is also straining essential resources like electricity and water.23
The organization noted that the industry creates relatively few jobs compared to the scale of investment, raising concerns about its long-term sustainability.
Johor has emerged as a key player in this sector, particularly after Singapore's moratorium on data centre construction pushed hyperscalers to seek alternatives. The OECD emphasized that Malaysia aims to leverage this industry to foster high-skilled jobs in areas such as engineering, cybersecurity, and data management.
Despite the potential for job creation, the OECD cautioned that the rapid expansion of data centres could lead to significant environmental pressures, necessitating a balanced approach to development.
As the industry continues to grow, the need for sustainable practices and community engagement becomes increasingly critical.
“In February 2026, residents protested against a 300-megawatt data center complex in Iskandar Puteri, marking Malaysia's first public resistance to such projects. The OECD highlighted that while the data centre boom has attracted US$44 billion in investments, it is straining local resources and creating relatively few jobs.”
Modern Diplomacy
Malay Mail
