Data centre boom to deliver over RM30bil to local firms: Expert

KUALA LUMPUR: Malaysia's burgeoning data centre industry could inject over RM30 billion into local businesses through domestic content requirements, presenting growth opportunities for companies to enhance their capabilities and advance in the technology value chain, according to Juwai IQI co-founder and CEO Kashif Ansari. The government's mandate requiring at least 30% local content in approved data centre projects could generate significant economic benefits for Malaysian suppliers and service providers, potentially translating to RM29 billion in spending directed towards domestic firms.

With 117 data centres approved and valued at around RM218.5 billion in investments so far this year, Malaysia's attraction to global technology companies like Google and Amazon Web Services is becoming increasingly clear. Google's RM63 billion investment includes new data centre campuses, clean energy and water security initiatives, while AWS plans to commit RM29.2 billion to Malaysia's AI and data centre ecosystem through 2038.

These commitments aim to upskill Malaysians and support local businesses across various sectors, including construction, engineering, network infrastructure, power and cooling systems, logistics, and more. Ansari emphasized that data centres could foster local engineering talents, software development, and technology companies, generating new businesses and employment opportunities within the technology sector.

However, he stressed that Malaysia's digital capabilities would require comprehensive policy support alongside infrastructure investments, such as initiatives to encourage innovation, skills development, and the growth of local technology firms.