UAE-Malaysia Digital Infrastructure Investment Partnership

Feb 2024

UAE and Malaysia have inked a Memorandum of Understanding (MoU) aimed at bolstering investment cooperation in digital infrastructure. The agreement, signed by the Ministry of Investment of the UAE and Malaysia’s Ministry of Investment, Trade and Industry (MITI), focuses on expanding data center capacities in Malaysia and fostering deeper economic and investment ties between the two nations.

According to MITI, the collaboration aims to develop data centers in Malaysia, with potential projects aiming to reach a combined capacity of 500 megawatts. In addition to expanding data center infrastructure, the MoU emphasizes a joint commitment to advancing artificial intelligence (AI) initiatives. Malaysia’s attractiveness as a regional data center hub is attributed to its robust digital and physical infrastructure, regulatory framework, and supportive government policies, positioning it favorably to tap into ASEAN’s burgeoning digital economy, forecasted to hit USD 1 trillion by 2030.

Malaysia’s data center industry is poised for significant growth, with a projected compound annual growth rate (CAGR) of approximately 16% from 2022 to 2027, reaching a market value of USD 2.90 billion. Noteworthy areas for data center development include Iskandar Puteri in Johor, Cyberjaya in Selangor, and Kuala Lumpur. Supported by initiatives such as the New Industrial Master Plan 2030 (NIMP 2030), which aims to cultivate various sectors including digital and ICT, Malaysia is well-positioned to foster innovation and drive economic advancement through its burgeoning digital infrastructure sector.

(Sources: MITI; The Star)

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