Johor, Malaysia: The New Data Centre Hub of Southeast Asia

Indonesian Minister of Communication and Information Addresses Foreign Investors’ Hesitations

Indonesian Minister of Communication and Information, Budi Arie Setiadi, has shed light on the reasons behind foreign investors’ reluctance to invest in Indonesia’s data centre sector.

Indonesia vs. Malaysia: A Comparison in Investment Attractiveness

Here are the key factors contributing to Malaysia’s appeal over Indonesia for foreign investors:

  • Competitive electricity prices
  • Tax exemptions for capital goods
  • Legal certainty in investments

    Malaysia’s Data Centre Boom

  • Investments in Johor’s data centres expected to reach US$3.8 billion this year (Maybank report)
  • Malaysia attracting major tech firms like Google, Nvidia, and Microsoft
  • Rapid growth driven by demand for cloud computing and AI

    Johor Baru: The Rising Star in Data Centre Market

  • Predicted to surpass Singapore as the largest data centre market in the region
  • Fastest-growing market in Southeast Asia according to DC Byte’s 2024 Global Data Centre Index

    Conclusion

    Malaysia, particularly Johor, is emerging as a powerhouse in the data centre industry, offering attractive incentives for foreign investors. With a favorable investment climate and growing market potential, Malaysia’s data centre sector presents lucrative opportunities for both investors and operators alike.

    In summary, Indonesia faces challenges in attracting foreign investments in its data centre sector, while Malaysia, especially Johor, is rapidly becoming a preferred destination for major tech players. The growth of Malaysia’s data centre market not only benefits the country’s economy but also highlights the region’s shifting landscape in the digital infrastructure space.

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