KUALA LUMPUR (Sept 14): Malaysia’s data centre boom should be measured not only by the amount of capacity, but also by local capabilities, companies and supply chains created from these investments, said industry experts. 

At a panel session at the Data Centre Nexus (DCN) 2026 conference, Gading Kencana Sdn Bhd managing director Datuk Dr Guntor Tobeng said Malaysia should look beyond providing land, electricity and water to data centres, and seek greater participation by local companies across the renewable energy and infrastructure value chain.

“Because these are enormous investments. If all we do is to provide land, electricity and water, while most of the technology, engineering and high-value services are important, then Malaysia captures only part of the opportunity,” said Guntor. 

He said this could include renewable energy developers, engineering, procurement and construction (EPC) companies, battery storage providers, energy management systems, engineering consultants and operations and maintenance companies. 

Hyperscalers could also bring Malaysian companies into projects earlier, share technical requirements and develop standards with them, he said.

Princeton Digital Group head of energy and environment Michael Martin said data centre operators should ensure that the cost of developing infrastructure does not fall on ordinary people.

He said relying on solar power would also be challenging, given the amount of land and battery storage required to provide sufficient energy. 

Instead, power infrastructure should contribute to the wider electricity system rather than being designed to benefit only individual data centres.

Martin also pointed to the potential for technologies, such as advanced geothermal power, to form part of the energy mix.

The panel also highlighted increasing artificial intelligence (AI) workloads, with Digital Realty's Asia Pacific head of solutions engineering and design,  Wayne Heywood, saying rack power density has risen sharply, from around five kilowatts (kW) to 10kW previously to as high as 70-107kW.

Rack power density is the amount of electricity consumed by IT equipment in a single server cabinet. 

He said the higher density increases power, heat and water requirements, and is driving a shift in cooling technology. 

Direct-to-chip liquid cooling is expected to become the main method in five to seven years, Heywood said.

He added that Malaysia’s tropical climate presents additional challenges for cooling systems, meaning technologies need to be adapted to local conditions.

Guntor said solar should be the foundation for renewable energy for data centres, supported by battery storage, other generation sources and the grid. 

Northern Solar Holdings Bhd (KL:NORTHERN) operations director Wong Sang Sing said solar alone could not serve as a complete power solution for hyperscale data centres, which needed continuous power. 

He said the focus should be on an integrated energy portfolio covering renewable power, storage and grid infrastructure.

The session was focused on "Green Solutions for Sustainable Data Centre Operations" and moderated by Datuk Phang Ah Tong, a board member of the Malaysian Investment Development Authority (Mida). 

DCN 2026, themed "Advancing AI‑driven Digital Infrastructure & Sustainable Ecosystem", is organised by Mida.