Malaysia’s Ministry of Investment, Trade, and Industry (MITI) and the United Arab Emirates’ Ministry of Investment have signed a Memorandum of Understanding (MoU) to boost collaboration in the digital infrastructure sector, focusing on the development of data centers in Malaysia with a targeted combined capacity of 500 megawatts.
MITI highlighted the MoU as a strong commitment to knowledge and expertise exchange between Malaysia and the UAE, aiming to enhance economic and investment ties.
Malaysia’s appeal as a data center hub in Southeast Asia, driven by robust infrastructure and government support, positions it well to meet the rising demand from regional SMEs in the digital economy.
Beyond data centers, the MoU underscores Malaysia’s dedication to advancing artificial intelligence (AI) in line with the New Industrial Master Plan (NIMP) 2030.
Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia’s Minister of Investment, Trade, and Industry, believes the collaboration will strengthen their position for digital investments, making Malaysia a key player in the ASEAN digital economy, expected to reach US$1 trillion by 2030.
On the other hand, the UAE’s Minister of Investment, Mohamed Hassan Alsuwaidi, emphasized the collaboration’s intent to enhance existing ties and leverage Malaysia’s potential as a top choice for data center locations in the Asia-Pacific region.
MITI noted the MoU as evidence of strong trade relations, with the UAE being Malaysia’s second-largest trading partner in the Middle East and Malaysia playing a crucial role in the UAE’s exports and re-exports within the ASEAN region.