KUALA LUMPUR (July 15): Major capital transactions as at the first half of 2026 (1H2026) have been led specifically by data centre land acquisitions nationwide, pointing to a trend in capital broadening and a heightened demand for quality in operational delivery, according to Knight Frank Malaysia executive director of research and consultancy Amy Wong at the launch of Knight Frank Malaysia’s Real Estate Highlights (REH) 1H2026 on Wednesday. 

The firm noted that real estate investment trust (REIT) transactions were more evenly distributed across sectors in 1H2026, with major capital flows concentrated on data centre and development land acquisitions nationwide.

It reported that there were 79 land acquisitions amounting to RM6.55 billion in 1H2026, excluding activities by the upcoming IOIPG REIT. These were constituted of data centre land (37%), development land (23%), industrial land or assets (23%), commercial assets (14%), and other transactions at 3%. 

The overall capital transaction market also appeared to be land-led rather than asset-led, as seven of the top 10 Bursa-announced capital transactions represented RM2.8 billion or 76% of the top 10 value. Five of these seven land transactions for data centre assets accounted for RM2.45 billion across Selangor and Johor.

The largest deal was the sale of 136 acres of powered data centre land at IOI Industrial Park Banting to Bridge DC for RM741 million in Selangor, followed by the Kapar data centre land portfolio (comprising Maybulk, Eonmetal and FerroNet Asia parcels) sold to WG Malaysia VIII for RM688 million.

“Developers and investors are investing because land is not something that you can generate money out of immediately. It needs to be developed into real estate assets,” Wong said. 

“Capital is broadening across usual core sectors, but a lot of it looks like it’s concentrated in scalable infrastructure-backed opportunities.”

Wong pointed out that Malaysia’s data centre market has reached a different stage, with a further 2.9 GW of capacity projected in the 2026 to 2028 pipeline. In the first half, there were around 568 acres of data centre land transactions recorded across areas like Banting, Kapar, Sepang, Ulu Tiram and Kulai, [with an] estimated value of RM2.45 billion versus the second half of 2025 at 92 acres at RM464 million,” she said.

She noted that RM8.8 billion worth of data centre-related contracts were announced during the first half of 2026, and that key drivers are now the operational delivery. 

“Instead of just landowners and operators, it is moving towards contractors who are delivering things like substations, cabling, mechanical M&E equipment, cooling, civil works, and all the other technical infrastructure that goes into it,” she said.

However, she cautioned that while the economy is growing and Malaysia’s macro backdrop is supportive of new investments, it’s not lifting every market. 

“Projects need a credible demand base, viable financing and execution certainty. The returns of this kind of investment will depend on infra delivery, approvals, occupier demands and activity and the ability to convert your land into an operating asset,” Wong concluded.