No bubble, doom, or trouble for Malaysia’s data centres

For over the past year, questions have persisted about Malaysia’s data centre boom. Is it sustainable? Will hyperscalers pull their chips? Is it in a bubble?

Malaysia’s data centre surge remains one of the largest in the world, but the physical and geopolitical limits surrounding it are no longer theoretical. Higher electricity tariffs, uncertainty around long-term energy pricing, constraints with water resources, and new US semiconductor rules are reshaping the calculus for developers and government planners.

The concerns, however, aren’t exclusive to Malaysia. Data centres are also on the rise in Indonesia and Vietnam.