Malaysia’s accelerating data centre expansion, stringent sustainability policies, and the rise of Proton City as a high‑tech valley are reshaping demand for integrated digital infrastructure. Five plots in Sungai Samak Estate offer strategic potential for scalable, renewable‑ready next‑generation data centre development.
— Malaysia’s Data Centre Expansion Drives Demand for New Strategic Development Zones
Malaysia’s rapid push into hyperscale and AI‑ready infrastructure continues to reshape the nation’s digital and industrial landscape. Recent government statements highlight unprecedented investment momentum, growing energy and sustainability requirements, and emerging concerns over speculative data centre capacity nationwide. These developments are now driving investors and operators to seek new locations that can support long‑term, resource‑secure, next‑generation data centre ecosystems.
Within this changing landscape, Tanjong Malim—situated at the Perak-Selangor border—has begun to stand out. Only 1 hour and 15 minutes from Kuala Lumpur, the region is strengthening its position as Malaysia’s next major high‑technology corridor. Its rise is amplified by the transformation of Proton City into an integrated automotive and advanced manufacturing valley, anchored by Proton (49% owned by Geely) and the upcoming BYD manufacturing facility. The government expects up to 50,000 workers and families to relocate to the wider Tanjong Malim area as part of this long‑term expansion.
National Trends Are Redefining What Makes a Data Centre Location Viable
Recent briefings from the Malaysian Investment Development Authority (MIDA) confirm that the nation’s surge in hyperscale capacity is aimed at enabling AI-driven manufacturing, digital twins, predictive maintenance, and real‑time supply chain optimisation—critical components of Industry 4.0. This infrastructure is particularly important for SMEs, enabling them to access advanced digital capabilities at lower capital cost.
At the same time, the government has raised concerns about existing data centres consuming less than half their declared power capacity, prompting a recalibration of energy provisioning to reduce stranded asset risks. The move signals an industry shift towards locations capable of demonstrating realistic demand, resource security, and long-term scalability—not merely speculative intent.
Water resource stability has also become a strategic differentiator. The recent Johor water disruption, which temporarily affected over one million consumers, has reinforced the importance of reliable water supply for cooling-heavy data centre operations. Analysts note that operators may face rising costs if forced to increase on‑site water redundancy.
The search for resource-secure, non‑speculative, forward‑compatible locations has therefore intensified.
Why Tanjong Malim Is Quietly Emerging as a Prime Data Centre Frontier
With these national dynamics in play, Tanjong Malim offers a combination rarely found elsewhere: abundant water sources, strong grid access, planned renewable energy integration, and rising economic gravity due to the Advanced High‑Tech Valley (AHTV) initiative.
Key regional advantages include:
• Proximity to Kuala Lumpur (1h15m drive), the country’s commercial epicentre
• Strategic position between Perak and Selangor, giving regulatory and infrastructural flexibility
• Emerging high‑technology ecosystem anchored by Proton, Geely, and BYD
• Expected inflow of tens of thousands of skilled workers into the region
• Multiple river systems and water catchment areas, supporting cooling needs
• Growing demand for compute infrastructure from new EV, battery, and automotive R&D clusters
In this context, Sungai Samak Estate—located within Tanjong Malim—has gained attention as one of the few zones capable of supporting a scalable, integrated, next generation data centre campus.
Sungai Samak Estate: Five Strategic Plots Positioned for the Data Centre Revolution
Five contiguous land plots within Sungai Samak Estate are now being highlighted by industry observers and investors assessing future-ready digital infrastructure locations. Full details are available at https://sgsamak.com, with enquiries directed to https://sgsamak.com/contact-us.
These plots offer several characteristics that meet the industry’s emerging requirements:
• Large-scale contiguity suitable for hyperscale or multi-building campuses
• Abundant water access from surrounding rivers and natural catchment areas
• Potential for onsite renewable energy generation, supporting upcoming carbon reporting obligations
• Proximity to major transport corridors, including the North-South Expressway
• Strong alignment with government policy direction regarding sustainable data centre development
• Close access to the AHTV workforce, including EV manufacturing, engineering talent, and R&D specialists
These attributes position Sungai Samak Estate as a compelling candidate for operators seeking to build Malaysia’s next-generation data centre infrastructure—particularly as national guidelines evolve to address carbon intensity, demand realism, and resource security.
Sustainability Pressures Are Accelerating the Shift Toward Renewable‑Capable Data Centre Sites
Malaysia’s commitment to net zero by 2050, along with the National Energy Transition Roadmap (NETR), means future data centre approvals will increasingly prioritise renewable integration, efficient cooling solutions, and transparent carbon reporting.
By 2026, the introduction of carbon pricing for specific sectors will indirectly influence how data centres design, power, and cool their facilities. Locations that can support renewable energy, implement low‑carbon operations, and avoid resource vulnerability will become disproportionately valuable.
The Sungai Samak plots, with the potential for onsite solar and access to substantial water reserves, align with these emerging regulatory imperatives—providing strategic insulation from the risks now surfacing in oversaturated hubs.
The Rise of Tanjong Malim and the Future of Malaysia’s Digital Backbone
As Malaysia positions itself as Southeast Asia’s rising data centre destination, industry momentum is shifting toward locations that combine scalability, stability, and sustainability. Tanjong Malim’s transformation into an advanced high‑technology valley—fuelled by automotive innovation and supported by national policy—is accelerating this shift.
With its strategic location, integrated infrastructure potential, and strong alignment with the next phase of Malaysia’s digital development, Sungai Samak Estate stands poised to play a central role in the nation’s data centre revolution.
Further information and inquiries on the five land plots are available at:
https://sgsamak.com/contact-us
Contact Info:
Name: Holly Lim
Email: Send Email
Organization: Sungai Samak Estate
Address: 2 Jalan Sempurna off Jalan Gombak , Kuala Lumpur, Federal Territory 53000, Malaysia
Website: https://sgsamak.com
Source: NewsNetwork
Release ID: 89177371
If you detect any issues, problems, or errors in this press release content, kindly contact [email protected] to notify us (it is important to note that this email is the authorized channel for such matters, sending multiple emails to multiple addresses does not necessarily help expedite your request). We will respond and rectify the situation in the next 8 hours.
