Malaysia’s thriving data center market amid a global technology upcycle are expected to keep the country’s 2026 gross domestic product (GDP) growth forecast unchanged at 4.7%, before easing to 4.3% in 2027, the International Monetary Fund (IMF) said in its July 2026 World Economic Outlook Update.
In Asia, Malaysia was named among four top net exporters of AI-related hardware alongside South Korea, Taiwan and Thailand. These countries experienced stronger-than-expected growth in the first quarter, boosted by tech-related activities, according to the IMF.
However, the fund cautioned that downside risks remain coming mainly from renewed conflict in the Middle East, supply-chain disruptions, higher commodity prices, trade fragmentation, other geopolitical risks and a possible correction in the AI industry.
Strong AI demand has partly offset the projected drop in global growth in 2026 to 3% from 3.5% in 2025, before picking up to 3.4% in 2027.