According to the Malaysian Investment Development Authority (MIDA), Malaysia’s Data Center Market is projected to grow from USD 4.04 billion in 2024 to USD 13.57 billion by 2030, at an annual growth rate of 22.38% reflecting the expansion of the data center industry across Southeast Asia. The momentum is evident in the Malaysian data center market, with multiple upcoming data centers under construction across Johor and Cyberjaya.

Rising Investments in Malaysia’s Hyperscale and AI-Ready Data Centers

For comparison, ST Telemedia Global Data Centers is developing the STT Johor Campus on 22 acres with 120 MW of planned IT capacity, with its first facility, STT Johor 1, delivering 16 MW by 2027. STACK Infrastructure is building a 220 MW hyperscale campus in Johor spanning 10.8 hectares and featuring over 1 million square feet of facility space, nearly twice the planned capacity of the STT Johor Campus.

Meanwhile, the TM and Nxera partnership is constructing an AI-ready campus that will scale up to 200 MW, close to STACK's capacity. This facility is supported by a 280 MW electricity supply agreement and advanced liquid-cooling technologies, highlighting Malaysia’s focus on AI data centers and high-density computing infrastructure with targets of PUE below 1.30.

Johor and Cyberjaya Emerging as Malaysia’s Key Data Center Hubs

At the same time, Cyberjaya’s data center expansion caters to the digital infrastructure needs of enterprises and hyperscalers. Equinix has announced a USD 190 million investment to develop a KL2 International Business Exchange (IBX) facility with 2,200 cabinets and AI-ready liquid-cooling systems. Equinix JH2 in Johor is set to receive a USD 201 million investment and launch in Q3 2027.

Malaysia Strengthens Its Position in ASEAN’s Digital Infrastructure Market

ST Telemedia’s Cyberjaya DC.2 will add 2.8 MW of IT capacity. STT Kuala Lumpur 1 will deliver 14 MW. These recent investments position the Malaysian data center market as a regional destination for hyperscale, AI, and cloud infrastructure, connecting ASEAN markets and Singapore’s digital ecosystem. The growth in hyperscale deployments, enterprise cloud adoption, and data center investment activity is strengthening Malaysia’s position in the regional digital economy.

In this article, we present a detailed analysis of the top upcoming data centers in Malaysia, including IT load capacity, operators, investments, connectivity, and development status.

List of Top 5 Upcoming Data Centers in Malaysia

The data centers are ranked by planned capacities: STACK Johor Bahru Campus, TM Nxera AI-Ready Campus, STT Johor Campus, STT Kuala Lumpur 1, and Cyberjaya DC.2.

STACK Johor Bahru Data Center

STACK Infrastructure’s Asia Pacific expansion footprint begins with the announcement of developing a 220 MW hyperscale campus in Johor Bahru. The campus is located inside Iskandar Puteri and is designed to support AI data centers and AI/ML deployments.

The 10.8-hectare campus will include two facilities totaling one million square feet. The first building will have a 120MW capacity, while the second facility will add an additional 100MW. Initial delivery will be in the fourth quarter of 2026.

The campus will be powered by TNB’s 275kV power capacity infrastructure, supported by an on-site substation and other critical support infrastructure providers to ensure a reliable power supply. The project will provide multiple deployment models, including shell, build-to-suit, and turnkey solutions, to meet different customers’ requirements.

Key Project Details

The investment demonstrates the growing hyperscale demand for AI data centers in Malaysia and highlights the role of global infrastructure providers in expanding regional cloud capacity, as well as Johor’s importance as a regional cloud infrastructure destination.

TM Nxera AI-Ready Data Center

TM Nxera, in collaboration with Telekom Malaysia, is developing a data center in Iskandar Puteri, Johor. The facility is a large-scale AI-ready hyperscale campus that achieved a construction milestone with the completion of the first building’s structural framework. Earlier in 2025, the project secured a multi-year electricity supply agreement with Tenaga Nasional for 280MW of power.

The facility uses advanced liquid-cooling technologies and renewable energy integration, positioning it among the next generation of AI data centers in Southeast Asia. It will achieve a Power Usage Effectiveness (PUE) of less than 1.30 at full load. The commercial operations of the first phase are expected to begin in the second half of 2026.

Key Project Details

The TM Nxera AI-Ready Data Center will deliver 200MW IT Load and is supported by a 280MW power agreement. The project uses an energy-efficient design and will support AI, hyperscale, and high-performance computing workloads. Commercial operations will include cross-border terrestrial and subsea fiber connectivity, thereby enhancing the regional digital ecosystem.

STT Johor Data Center

ST Telemedia Global Data Centers is constructing the STT Johor Campus in Iskandar Puteri, Johor, on 22 acres of land within the Nusa Cemerlang Industrial Park. The location is 15 kilometers from Singapore. The facility will benefit from cross-border connectivity and access to telecommunication links.

The campus has a potential IT load capacity of 120MW and will receive power from nearby substations. The first facility on campus, STT Johor 1, is planned with a 16MW IT load capacity. It will be completed by 2027. The project will connect with STT Singapore 5, which serves as the company’s regional interconnection hub.

Key Project Details

The STT Johor 1 facility will deliver an initial IT load of 16MW and will be ready by 2027. The campus is connected to STT Singapore 5, offering regional connectivity benefits for businesses and cloud providers. The project is currently under development and will strengthen Johor’s position as a data center hub in Southeast Asia.

The project reflects Johor’s importance as a preferred hyperscale data center destination within the expanding Malaysia data center ecosystem, thanks to its proximity to Singapore and its power infrastructure.

STT Kuala Lumpur 1 Data Center

ST Telemedia Global Data Centers is advancing the development of STT Kuala Lumpur 1, which forms part of a larger data center campus alongside Cyberjaya DC.2.

The project will support the flexibility and scalability of customer requirements and will position Cyberjaya as Southeast Asia’s digital infrastructure hub. Malaysia’s location and growing digital economy will drive the increasing demand for hyperscale and enterprise colocation facilities in the near future.

Key Project Details

The facility will offer 14MW of IT capacity. It will deliver flexible and scalable infrastructure to meet demand for cloud computing and digital services. The project will support Malaysia’s expanding data center industry and strengthen Cyberjaya’s position as a major hub in Southeast Asia.

Cyberjaya DC.2 Data Center

ST Telemedia Global Data Centers is expanding in Cyberjaya with the development of Cyberjaya DC.2, a facility located in Malaysia’s digital and technology corridor. It is designed to cater to banking, financial services, insurance companies, and government organizations that require secure, resilient digital infrastructure.

The data center is designed to achieve LEED Gold certification. Cyberjaya, with its digital ecosystem and growing presence of global infrastructure providers, connectivity, continues to attract growing demand.

Key Project Details

The facility is designed with an IT capacity of 2.8MW and focuses on sustainability and energy efficiency. The data center is targeted for customers from the banking, financial services, insurance, and government sectors. This project, currently under development, will expand STT GDC’s presence in Malaysia’s digital infrastructure market.

Equinix Investments and Expansion in Malaysia

Equinix KL2 Data Center

Equinix has announced plans to develop KL2, a purpose-built International Business Exchange (IBX) data center in Cyberjaya, Kuala Lumpur. KL2 will be less than one kilometer from Equinix’s existing KL1 facility. The project is part of Equinix’s expansion strategy in Malaysia. It forms a portion of ongoing investments in Johor.

The new facility will support 2,200 cabinets. It will cater to hyperscalers, digital-native companies, multinational enterprises, and AI-driven workloads. The project is designed with advanced liquid cooling capabilities. These will support high-density AI and HPC deployments.

Key Project Details

Equinix is investing more than USD190 million and aims to achieve 100% renewable energy coverage in the project. The KL2 facility will improve connectivity options for enterprises and cloud providers. The project’s development which strengthens Cyberjaya’s position in the regional colocation market revenue and expands Malaysia’s AI infrastructure capabilities makes Cyberjaya a digital hub for ASEAN cloud and AI infrastructure.

Equinix JH2 Data Center

Equinix’s JH2 development in Johor is its second International Business Exchange (IBX). It is located within the Johor-Singapore Special Economic Zone (JS-SEZ). The project strengthens the interconnection between Malaysia and Singapore while contributing to long-term growth in Johor’s data center investment. The project achieved its topping-out milestone in late 2025. It is expected to launch in Q3 2027.

JH2 will provide 2,225 cabinets. It will support the demand for digital infrastructure from enterprises and hyperscale customers.

Key Project Details

The Equinix JH2 data center in Johor, Malaysia, has an investment of USD 201 million. It will be launched in the third quarter of 2027. The project is currently under construction.

Conclusion

The upcoming data centers in Malaysia demonstrate the country’s rise as a leading digital infrastructure hub in Southeast Asia. Hyperscale campuses, AI-ready facilities, and enterprise colocation developments are spread across Johor and Cyberjaya. These projects attract investments from global operators, cloud providers, and technology companies.

Johor and Cyberjaya Lead Malaysia’s Future Digital Infrastructure Growth

Johor is becoming an important destination due to its connectivity with Singapore and power infrastructure. Most projects, like STT Johor Campus, TM Nxera AI-Ready Campus, STACK Johor Bahru Campus, and Equinix JH2, are enhancing the Johor-Singapore digital corridor. These developments use cross-border terrestrial and subsea fiber connectivity with power agreements. At the same time, Cyberjaya continues to play a role as Malaysia’s enterprise and cloud infrastructure ecosystem. This is driven by projects such as Equinix KL2, Cyberjaya DC.2, and STT Kuala Lumpur 1.

Malaysia Strengthens Its Role in ASEAN’s AI and Cloud Ecosystem

As demand for AI computing, hyperscale cloud deployment, hybrid multi-cloud services, and low-latency infrastructure grows across ASEAN, Malaysia is emerging as a digital gateway in the Asia Pacific. Recent MIDA findings also indicate that continued foreign direct investment, hyperscale demand, and renewable energy adoption will further expand the country’s market size over the next decade. With connectivity, sustainable development, and hyperscale demand, the country’s role becomes increasingly prominent in the future expansion of AI, cloud, and digital infrastructure across Southeast Asia.

Track Malaysia’s Data Center Opportunities with Confidence

As Malaysia accelerates its expansion in hyperscale, AI-ready, and cloud-focused digital infrastructure, staying updated on upcoming data centers in Malaysia is essential to remain competitive in Southeast Asia’s rapidly evolving digital economy.

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