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[KUALA LUMPUR] Malaysia’s data centre boom is becoming a powerful engine for employment, with projections indicating significant job growth by the end of the decade. According to the Asia-Pacific Data Centre Association (APDCA), the sector is set to create 30,900 jobs annually by 2030.

A portion of these – 4,300 positions – will be high-value roles in cutting-edge fields such as cloud computing and artificial intelligence (AI), signalling a major shift towards a more advanced digital economy.

In its report, which was released on Jul 24, APDCA noted that the growth’s impact is amplified by a significant multiplier effect: for every direct job created, an additional 3.2 jobs are supported elsewhere in the economy, establishing data centres as one of the country’s most vital engines for employment.

With data centre investment projected to rise 185 per cent from 2023 to 2025, Malaysia is now South-east Asia’s fastest-growing digital infrastructure market.

That momentum has drawn US$34 billion in investment from global cloud providers and developers in 2024 alone, positioning the country as a key regional hub for scalable AI, fintech, and cloud services.

Beyond data centre construction

But the real impact of this surge isn’t just measured in megawatts – it’s measured in wages, skills, and livelihoods, said the report, noting that what started as a construction-led boom is now transforming into a high-value digital labour economy.

According to APDCA, about 40,000 jobs have already been created across construction, engineering, operations, and logistics.

These include roles in site preparation, mechanical and electrical engineering, IT systems operations, cooling and power maintenance, fibre deployment, server logistics, and facility security.

Yet the most transformative shift lies in the rise of knowledge-based roles. AI engineers, cybersecurity analysts, software developers, and cloud infrastructure architects are becoming increasingly critical to support the growth of next-generation digital services.

“By 2030, knowledge workers are expected to account for 14 per cent of all data centre-related employment in Malaysia, representing a total of 4,300 high-value roles – up from just a few hundred today,” said the report.

Wage growth

Total annual wage income supported by the data centre sector is projected to increase more than seven times, from US$175 million in 2024 to about US$1.3 billion by 2030.

A significant portion of this growth (around US$1.1 billion) is expected to come from supply chain and other economic impacts.

By 2030, the development of these data centres will support an estimated 31,000 jobs annually, contributing US$1.3 billion in total annual wages to the economy.

The economic footprint of the sector is considerable, with data centre construction alone contributing around US$24 billion annually in economic output and US$7.6 billion in gross value added (GVA).

Once operational, data centres are expected to deliver a further US$10.2 billion in output and US$4.2 billion in GVA to the Malaysian economy every year, based on the APDCA report.

The association also noted that the data centre development is helping Malaysia shift from a labour-intensive economic model towards a digitally enabled, export-oriented one.

APDCA estimated that AI could add US$115 billion to Malaysia’s gross domestic product between 2025 and 2030, creating new opportunities in sectors like healthcare, manufacturing, agriculture, education and finance.

But the association stressed that these gains may not be realised without sustained AI investment.

“Malaysia could miss out on more than US$100 billion in potential GDP due to a slowdown in productivity, declining competitiveness, and a widening digital skills gap,” added APDCA.

Meanwhile, the association said changes to voltage-based power tariffs could raise electricity costs for operators, potentially weakening Malaysia’s competitiveness as a regional AI data centre hub.

“Higher operational costs may delay or scale back the number of AI and cloud developments, slowing the rollout of AI-driven services in key sectors such as healthcare and education,” said APDCA.

Johor leads growth

Johor has emerged as the epicentre of Malaysia’s data centre expansion. As at 2024, the southern state hosts 79 per cent of the nation’s 505 megawatts of live IT capacity.

“Johor’s ample land, reliable power infrastructure, pro-investment policies, and proximity to Singapore have made it the top destination for hyperscale developments, including campuses targeting 100 megawatts or more,” said the report.

Klang Valley, while hosting a smaller share of total capacity, remains a vital digital hub due to its role as Malaysia’s economic and enterprise centre. It continues to attract cloud providers and enterprise AI developers.

Meanwhile, interest is growing in northern and eastern regions of the country, particularly Kedah, where the North Kedah Special Economic Zone is shaping up to be a new node for large-scale data infrastructure.