Malaysia Must Ensure Data Centre Growth Delivers Measurable Economic Spillovers
KUALA LUMPUR, Sept 14 (Bernama) -- Malaysia must ensure that the rapid growth of its data centre industry delivers real and quantifiable spillovers to the wider economy, including stronger local businesses, deeper local capabilities and real opportunities for the people.
Malaysian Investment Development Authority (MIDA) chairman Tengku Datuk Seri Zafrul Tengku Abdul Aziz said attracting investments was only the first step, with the next responsibility being to develop a sustainable industry that benefits all Malaysians.
“Beyond the headline numbers, MIDA keeps asking one question: how do we turn this investment into lasting, tangible value for the wider Malaysian economy?
“Data centres are a key driver of our digital economy. But their real value lies beyond the data halls themselves. We need to show that the spillover is real and quantifiable,” he said in his luncheon remarks at the Data Centre Nexus (DCN) 2026 here today.
Tengku Zafrul said the presence of global hyperscalers in the country was anchoring Malaysia as ASEAN’s digital hub, and that should translate into thousands of high-value jobs in construction, engineering and technology operations.
It should also create growing opportunities for Malaysian small and medium enterprises (SMEs) in facilities management, systems integration and the cloud supply chain, he said.
“Realising this will take real investment -- in energy security, connectivity, industrial infrastructure, and the circular use of resources like water,” he added.
Citing global examples, Tengku Zafrul said Google had converted a decommissioned paper mill in Hamina, Finland, into a data centre cooled using seawater from the Baltic Sea, while its waste heat was recovered to warm homes nearby.
He said Meta’s data centre in Odense, Denmark, now supplies surplus heat to the city’s district heating network, warming thousands of homes.
“These are not charity projects. They are proof that circularity and capacity can grow together. Malaysia should aim as high. And we must move quickly and systematically – as outlined in our National Industrial Master Plan 2030 and the National Semiconductor Strategy.
“Data centres provide the digital backbone that catalyses other industries — advanced manufacturing among them,” he said.
Tengku Zafrul said that same backbone enables artificial intelligence training, cloud services and chip design, thereby strengthening Malaysia’s place in the global compute economy.
“Your experience on the ground matters just as much to us. Tell us where the friction is, so our policies stay practical and responsive to industry and business growth, as well as to the people we serve.
“That is why we organised the DCN. Complex challenges are best solved together -- government and industry, side by side -- so this sector’s rapid growth can benefit Malaysians and our SMEs broadly, not narrowly,” he said.
Tengku Zafrul said DCN 2026’s discussions, exhibitions and business-matching sessions are designed to transform conversations into commercial opportunities and short-term deals into long-term partnerships.
He also highlighted the need for a stronger local talent pipeline, highlighting Amazon Web Services’ re/Start programme -- which has trained local talent for data centre and cloud careers in countries such as Ireland and Singapore -- as a model worth studying.
“Malaysia has the talent. We now need the pipeline to match it.
“In the end, success will not be measured by the size of the investment we attract, but by the value we build around it: stronger Malaysian businesses, deeper local capabilities, and real opportunities for our people,” he said, while emphasising that capital owners and facilitators, like banks, must also play their part.
-- BERNAMA