The second wave of data centre boom in Malaysia has arrived underpinned by persistent demand for data centres and sustained capex commitments from global tech giants through 2026, Kenanga Investment Bank announced in its research note recently.
“With hyperscalers actively kickstarting construction on megacampuses in Springhill (Negeri Sembilan) and Serendah (Selangor), coupled with a new campus layout ramping up in Johor, the second wave of the data centre boom has officially materialised,” it said.
These three hubs alone represent an estimated pipeline of 17 to 21 data centre structures, with 3 to 4 project rollouts anticipated in 2H 2026 alone.
In the first three months of 2026, national electric company Tenaga Nasional Bhd has signed energy supply agreements for three data centers bringing the total to 59 projects, out of which 36 have already been completed.
For context, the note recounted how in 2025, US tech giants, Microsoft and Pearl Computing each acquired two parcels of land for data centre expansion. Notably, Malaysian conglomerate, Gamuda, sold a 389-acre parcel at Springhill Industrial Park, Port Dickson to Pearl Computing for RM455.2 million, alongside RM1 billion of enabling infrastructure works.
The site can host 800MW-1,000MW of data centre capacity, translating into RM14 billion-RM20 billion in potential construction value. In April, Pearl Computing kickstarted the rollout of the Springhill campus by awarding a RM1.72 billion core, shell, and MEP contract to Gamuda.
Giant construction specialist Sunway Construction(Suncon) was awarded a matching RM1.72 billion core, shell, and MEP contract to build a data centre at a new site in Bandar Serendah for a hyperscaler. Suncon also secured an RM865.6 million contract in April to build two substations for a data centre campus in Johor from a US-based hyperscaler.
The Springhill site is estimated to cater to 8-10 data centre projects, the Serendah site for 4-5 projects, and the new Johor site for 5-6 projects for the US-based hyperscaler, translating into a total pipeline of 17–21 data centre structures across these three hubs.