GDS Opens First Regional Data Centre in Malaysia, Attracts Chinese Investors
Chinese IT service and data centre operator GDS launched its first regional data centre in Johor, Malaysia last August. Experts believe that Malaysia’s proximity to Singapore and affordable land in Johor makes it an attractive destination for Chinese investors looking to enter the Southeast Asian market.
Economy Minister Rafizi Ramli is optimistic about Malaysia’s transition to the front end of the semiconductor industry, with a focus on integrated-circuit design and data centres. Malaysia is already a key player in the global semiconductor industry, supplying 13% of total demand.
As big tech companies like Google and Alibaba expand in Southeast Asia, Malaysia is positioning itself as a non-aligned business hub. The country’s New Industrial Master Plan 2030 aims to boost the digital economy and elevate the technology sector.
Despite concerns about China’s digital expansion, Malaysia’s strategic location, cost advantages, and green initiatives are drawing in investors. With competitive land and construction costs, Malaysia is becoming a promising destination for data centre development, offering a lucrative opportunity for Chinese and Western tech companies.