Middle East conflicts may reshape the computing power landscape, creating opportunities for Malaysia

Golden Ten Data reported on April 7 that Adam Muhammad Rachin, an analyst at Industrial Bank of Investment, stated in a report that the ongoing tensions in the Middle East may lead to some data center investments shifting to Asia, including Malaysia. He estimated that although rising energy prices could increase the electricity costs for data centers, the impact is likely to be manageable, with a potential increase of about 7% under the fuel cost mechanism. He indicated that Malaysia’s relatively low construction costs also help it remain competitive with its regional peers. The Johor-Singapore Economic Zone appears to be attractive, as Johor is emerging as a top data center hub in Asia. He added that by 2030, Malaysia's data center pipeline is estimated to be 3,252 megawatts, which is equivalent to a construction value of around 90 billion ringgit.