If you have a question of why Prime Minister Datuk Seri Anwar Ibrahim says Malaysia is towards the country of Artificial Intelligence (AI) through the 13th Plan, the answer can be found on regional data centers construction data. According to a Reuters report quoting DC byte firm data, over two -thirds of the data center capacity built in the five largest Southeast Asian markets is in Malaysia.
Johor is the location of choice as its close to Singapore allows fast Internet connections with low -end customers. Singapore's actions impose a 3 -year data center construction moratorium as power consumption has also been the catalyst for Johor as a Malaysian Data Center.
As of the end of 2024, there were 12 data centers operating in Johor with 42 projects worth RM 164.45 billion approved up to Q2 2025. When all operations, Johor will contribute 78.6% of the Malaysian data center capacity.
This gives Malaysia a picture of the right path towards the dream of becoming the Southeast Asian regional data center but it will also increase energy consumption and pollution. The Rimbawau Report in August estimates that the center can produce 9.9 million tons of carbon dioxide each year equivalent to the release of 2 million private vehicles.