Capturing Data Center Opportunities in Malaysia to Drive Earnings Growth

VSTECS Berhad, a distributor for Information & Communication Technology (ICT) products, aims to capitalise on data center opportunities in Malaysia to support its earnings growth.

VSTECS Berhad, listed on the Main Market of Bursa Malaysia Securities Berhad, believes that the anticipated growth in data center investments within the country, propelled by the presence of hyperscale data centers, will heighten demand for enterprise systems and ICT services, according to local reports.

Businesses in Malaysia are expected to witness an influx of approximately US$2.25 billion (RM10.2b) in investments directed towards local data centers by 2028.

The surge in Malaysia’s data center industry growth can be traced back to the government’s strategic policies, prominently centered on advancing the digital economy.

In June, Malaysia Digital Economy Corp. Sdn. Bhd. (MDEC) and the International Data Center Authority (IDCA) entered into a Memorandum of Understanding (MOU) to support and promote the growth of Malaysia’s digital economy. The goal is to establish Malaysia as a prominent global destination for digital investments and foster its position as a modern, green data center and cloud infrastructure hub.

In January, Singapore & Malaysia signed agreements that focused on the digital economy and green economy. The two countries also inked a memorandum of understanding (MOU) that will enable them to cooperate on issues such as personal data protection as well as cybersecurity. These initiatives are expected to play a pivotal role in fostering the continued expansion and development of the data center sector within the country.

Asia Pacific’s rapid growth of cloud computing, e-commerce, and big data applications are among main drivers for the expansion of data center capacity and smart infrastructure systems as seen in countries such as Malaysia.

In May, Princeton Digital Group (PDG) entered into a definitive agreement with JLand Group Sdn Bhd (JLG), Johor Corporation’s real estate and infrastructure arm, to build a 150 MW hyperscale campus in Sedenak Tech Park (STeP) in Johor.

AIMS Group announced the construction of AIMS Cyberjaya Block 2 in Malaysia. Vantage Data Centers also announced a second data center campus (KUL2) with an additional US$3 billion (RM13.32b) investment in Cyberjaya. Additionally, an Australian data center operator NextDC is planning phased development of new data centers in Kuala Lumpur to accelerate its expansion plans and to cater to growing demand for data center services across the Asia-Pacific region.

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