Workers laying cables outside Bridge Data Centres in Johor state, which has become Southeast Asia's fastest-growing data centre hub, at Sedenak, Malaysia, on May 6. (Photo: Reuters)
HONG KONG/JOHOR, Malaysia - After leapfrogging Singapore to become the region's fastest-growing data centre hub, Malaysia is facing intensifying scrutiny as the resources debate that has complicated the industry's growth spreads to emerging Asia.Protests over a data centre complex in Johor state's southern tip — the epicentre of the boom — were the first of their kind in the country. In Selangor, the richest and most populous state, debate about the burden on communities has become politicised.
"Two years ago, it was just about building capacity," said Cheam Tat Inn, managing director at the Malaysian arm of US data centre operator Equinix.
"The conversation today is more like, How will you use power? Are you looking at renewables? They want to see how you're going to grow sustainably and responsibly."
It's a notable shift for a country — and a region — that has courted hyperscalers hard in a race to secure AI infrastructure investment, offering lower land costs and affordable power.
