November-December. 2025 |
INSIGHT
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Talent development and data centres developed energy infrastructure, and access to renewable energy, all of which are crucial for hyperscalers that value sustainability.
The country ' s readiness and improvements in recent years have boosted global investor confidence, especially among those seeking to build scalable, long-term data centre capacity.
ENERGY CONSIDERATIONS
However, as data centre capacity grows, sustainability has become a central issue. Data centres are major consumers of electricity and water, raising concerns about environmental impact and longterm resource availability.
In order to mitigate the environmental impact of data centres, Malaysia focuses on improving energy efficiency and increasing renewable energy resources as its two primary strategies.
The combined approach is based on the notion that the sector ' s sustainable growth will be sufficiently supported by optimising Power Usage Effectiveness( PUE) and related measures in conjunc-
Data Centre in Cyberjaya( Image: DCD)
tion with a transition to cleaner energy.
Nevertheless, it is important to note that although this approach offers incentives to maximise PUE, they are merely suggestions and are not legally binding.
How Malaysia balances rapid growth with sustainability goals will play a decisive role in shaping the sector ' s future.
A GROWING ROLE
Malaysia ' s emergence as a regional data centre hub marks a broader shift in Southeast Asia ' s digital landscape. As demand for data storage and processing continues to surge, the region is no longer reliant on a single hub.
The combination of Malaysia ' s strategic location, cost competitiveness, improving infrastructure, and sustainability considerations positions it well to play a long-term role in supporting regional digital growth.
While challenges remain, the country ' s momentum suggests it is moving from an alternative destination to a core pillar of Southeast Asia ' s data centre ecosystem.
Data Centre in Penang( Image: DCD)
BEHIND THE DIGITAL GROWTH: Workers at an underconstruction data centre in Sedenak Tech Park in Johor, Malaysia.( Image: Vincent Thian / Associated Press / Alamy)
BEHIND the rows of servers and humming cooling systems that define data centres lies a less visible but equally critical component: people. While data centres are often discussed in terms of land, power capacity, and investment size, their ability to function around the clock depends on a highly skilled workforce operating behind the scenes.
Malaysia ' s fast-growing data centre industry is drawing renewed attention to talent development, as operators seek professionals capable of managing complex, mission-critical infrastructure.
Contrary to the perception that data centres create few jobs, modern facilities rely on a wide range of specialised roles, including electrical and mechanical engineers, network and cybersecurity specialists, operations managers, sustainability experts, and technicians responsible for maintaining uptime in high-density environments.
The rise of cloud computing and artificial intelligence( AI) has further reshaped workforce needs. AI-driven workloads demand advanced expertise in power management, cooling technologies, automation, and high-performance computing. As data centre designs become more complex, the skills required to operate them are evolving rapidly.
Malaysia enters this race with several advantages. The country produces a steady pipeline of graduates in engineering, information technology, and computer science. Furthermore, the effort is supported by universities, technical institutions, as well as private training providers.
Competitive labour costs compared to regional peers also strengthen Malaysia ' s appeal to global data centre operators building long-term operational teams.
Beyond direct employment, data centre growth is generating spillover opportunities across construction, telecommunications, facilities management, and professional services. This broader ecosystem reinforces the sector ' s contribution to Malaysia ' s digital economy.
Ultimately, Malaysia ' s ambition to become a regional data centre hub rests not only on infrastructure readiness but also on its ability to cultivate a skilled, adaptable workforce capable of supporting the industry ' s next phase of growth. @ ND
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energy-intensive and consume significant amounts of electricity for computing and cooling systems. This has driven sustainability to emerge as a critical policy and commercial factor in Malaysia, where industry expansion is expected to demand thousands of megawatts of power over the next decade.
The government has introduced standards such as Power Usage Effectiveness( PUE) to ensure energy efficiency in new facilities, while planning to increase the share of
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renewable energy in the national grid to 31 per cent by 2025 and up to 70 per cent This shift reflects efforts to balance industry growth with environmental goals.
Some bodies in Malaysia have put efforts forward. Telekom Malaysia ' s data centres in Cyberjaya and Johor have already adopted green electricity tariffs( GET) from renewable sources, alongside internationally recognised sustainability certifications as part of broader commitments to reduce carbon emissions.
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Tenaga Nasional Berhad( TNB) is also rolling out initiatives to integrate more renewable energy and shorten data centre grid connection times, while supporting the national energy transition roadmap that targets 70 per cent renewable capacity by 2050.
Looking ahead, Malaysia ' s challenge will be to scale both data centre capacity and green energy progress in tandem and to ensure that growth in digital infrastructure does not come at the expense of environmental sustainability.
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TO A GREENER FUTURE: As data centre capacity expands, sustainability is becoming central to Malaysia ' s digital infrastructure strategy.( Image: Hoptroff) |