Malaysia’s Info-Comm Sector Leads 2025 Services Investments with RM152.9 Billion Surge in AI and Data Centers

Malaysia's information and communication sub-sector dominated approved services investments in 2025, totaling an impressive MYR 152.9 billion ($38.73 billion).

This leadership stems from robust digital investments in artificial intelligence (AI), big data, data centers, and cloud computing.

Data Centers Fuel Economic and Sustainable Growth

Data centers are forecasted to inject MYR 14.1 billion ($3.57 billion) into Malaysia’s economy this year alone.

Their rising energy needs are hastening the country’s renewable energy transition, bolstering large-scale solar initiatives toward a 70% renewables goal by 2050.

Globally, data centers captured over one-fifth of greenfield project value, surpassing $270 billion, positioning Malaysia as an emerging hub alongside Brazil, India, and Thailand.

Strategic Initiatives Cement Digital Leadership

The Data Center Task Force (DCTF), formed in February 2025, coordinates efforts between ministries to make Malaysia a premier regional digital destination.

Upgraded Digital Ecosystem Acceleration (DESAC) standards enforce metrics like Power Usage Effectiveness and Water Usage Effectiveness, fostering local jobs and university collaborations.

Manufacturing and Clusters Show Strong Momentum

Manufacturing approvals reached MYR 131.3 billion ($33.26 billion) across 1,354 projects, emphasizing high-tech advancements.

The electrical and electronics sector clinched MYR 28.5 billion ($7.22 billion), deepening integration with AI and green technologies.

Iconic clusters like Penang’s E&E hub secured 83 projects worth MYR 11.3 billion ($2.86 billion), with 78% foreign-funded, building on decades of expertise.

Future prospects shine in automotive electrification and sustainable fuels, reinforcing Malaysia’s high-value tech ecosystem.