Unlocking Malaysia's data center potential: the role of ecosystem partnerships

Malaysia is fast becoming a key player in the data center arena as major players are pouring investments into the country. Its southern city Johor Baru, the state capital of Johor, has already been recognized as Southeast Asia’s fastest growing data center market, according to the 2024 Global Data Center Index. As part of its New Industrial Master Plan 2030 (NIMP 2030) and the Malaysia Digital Economy Blueprint, the Malaysian government is ambitiously pushing for Malaysia’s transformation into a high-tech industrialized and digital nation by 2030.
Given that data centers aren’t standalone infrastructures, it requires a concerted effort to solidify a bedrock of cybersecurity, cloud and connectivity services, as well as overall capacity and continuity. These are areas that leading players across the private sector technology ecosystem can collaborate on to help accelerate Malaysia’s agenda.

Cybersecurity is everyone’s responsibility

Cybersecurity is key in today’s AI-driven world. According to data from our very own Orange Cyberdefense, cybersecurity threats will continue to see an increase based on the fact that cyber extortion has impacted 75% of all countries since 2020 and 118 countries in the last year alone, as revealed in its Cy-Xplorer report in July. With the evolving threat and risk landscape, it is therefore imperative for data center hubs to have a cybersecurity strategy, approach and posture as their primary line of defense.

Similarly, the need for proactive cybersecurity solutions applies to the tenants who store their servers and data in the infrastructure. In response to the escalating threat of ransomware and cyber extortion, the Counter Ransomware Initiative (CRI) is a notable initiative that has gained traction in recent years. This multinational effort is aimed at disrupting ransomware operations and dismantling cybercriminal networks, bringing together governments, law enforcement agencies, cybersecurity experts and industry partners to coordinate and share information on ransomware threats and trends. The success of such initiatives would depend very much on the willingness of nations to collaborate and share intelligence and resources in the fight against cybercrime.

Technology leaders in Malaysia have a role to play in a synergistic nationwide platform, which involves collaborating with the industry and government to share and act on data breaches rapidly and regularly, while taking proactive measures to safeguard corporate data, IT networks and assets. A robust and strong cybersecurity foundation is fundamental to Malaysia's ambition of becoming a high-tech hub, as it underpins the protection of critical infrastructure, economic stability, national security and consumer trust.

Cloud and connectivity

Data centers, too, play a central role in providing seamless connectivity and global content access to businesses. This connectivity is a critical enabler of innovation and data exchange across various sectors, driving growth and diversification within the economy. As businesses increase their numbers of communication points, the importance of maintaining the rapid connectivity and speed of those communications increases as well – which means stakes are high and the margin for error is exceedingly thin.

By ensuring that connectivity reliability and uptime standards are among the highest and the best with minimal latency, Malaysia can stand out as a reliable and efficient technology hub with the right systems in place for attracting more business investments while leading the regional marketplace.

Capacity and business continuity

In the context of data centers, capacity translates to not just the physical number of racks but the availability and scalability of power supply to support current and future demand. Water resources are a critical consideration, as data centers require them to manage infrastructure temperatures and to prevent the overheating of hardware, which correlates to the need for 100% uptime for cooling. While space in Malaysia could be arguably abundant, the power and water-resource criteria to run new data centers are immense – hence, any of such constraints would require consideration and planning for continuity and contingency.

Ensuring operational continuity as a hub for data centers hinges on several key factors: providing the host country with infrastructure support for the data center and for the high-tech sector to ensure superior operating reliability, high-quality service, real-time visibility into operations, rapid communications and seamless access. As the high-tech sector is governed by strict international standards and regulations regarding uptime, data management and disaster recovery, technology players like Orange Business have what it takes to support Malaysia in delivering on the capacity and continuity strategy needed to meet these standards.

Delivering on a shared ambition

The expansion of Malaysia’s data centers is a boon to help with spearheading its ICT growth and attracting more companies to set up their offices locally. But beyond technology, bringing together a public-private sector partnership to deliver on shared goals and leveraging support from expert service providers will crucially accelerate the nation’s ambition.

Haniza Zakariya
Haniza Zakariya

Haniza Zakariya is the Country Lead for Malaysia at Orange Business. She covers a range of sales leadership portfolios in top notch global tech companies, specializing in the enterprise and public sectors in Malaysia and Brunei. In leading the country’s sales business for Orange Business Malaysia, Haniza drives the transformational model to build a high-performing sales culture through mindset change and high accountability. In her spare time, she loves keeping herself busy with golfing, jogging and traveling.