AWS to Establish First Malaysian Data Centre in Cyberjaya as Part of $6 Billion Investment

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Amazon Web Services (AWS) is preparing to create its first data centre in Malaysia, which will be located in Cyberjaya, Selangor.



According to Lowyat's report, the project would be completed in phases, with the Sepang Municipal Council overseeing its progress. The project's key participants include Asima Architects, Sunway Construction, and Landarc Associates. While the exact timetable and specs for the facility are unknown, this initiative is part of AWS' overall commitment to Malaysia. In March 2022, AWS announced intentions to invest $6 billion in Malaysia by 2037 to build a new cloud region with three availability zones.



Sunway Construction, one of the project's partners, was earlier awarded a significant RM747.8 million ($170.8 million) contract in March 2023 to build a data centre in Selangor for an unknown US tech business. The project is expected to be completed in the second quarter of 2027. However, it is unclear if this initiative is related to the future AWS facility.



As Malaysia emerges as a regional data centre powerhouse, AWS's recent investment continues a trend of big tech corporations focussing on the country. In addition to AWS, Google and Microsoft have announced ambitions to establish cloud regions in Malaysia. Google committed to a $2 billion investment for a new Google Cloud Platform (GCP) area, announced in August 2022, and Microsoft revealed plans for a Malaysian Azure region back in April 2021, though it has yet to launch.



Cyberjaya, along with Kuala Lumpur and Johor, has emerged as a hub for data centre development in Malaysia, especially since Singapore imposed a moratorium on new data centre projects in 2019. This has resulted in greater investment in Malaysia's data centre infrastructure. NTT and other major data centre operators are already well-established in the region, with facilities along the Persiaran APEC dual-carriageway in Cyberjaya.



In addition to the expanding data centre business, Malaysia's Ministry of Energy Transition and Water Transformation has recently committed to addressing sustainability issues in the sector, indicating the government's emphasis on balancing development and environmental concerns. With more cloud regions emerging across Asia-Pacific, AWS' new presence in Malaysia is yet another step in the country's rapid digital development.


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