Data centres in M’sia estimated to need US$20bil funding over next 3 years
S&P Global Ratings estimates that Malaysia's data center sector will require $20 billion in funding over the next three years to meet capacity demands. The report suggests that developers must look beyond traditional bank loans toward alternative capital sources.
Why it matters
Signals a major infrastructure investment shift in Southeast Asia's digital economy.
S&P Global Ratings said data centre projects in Malaysia are reaching an inflection point. (EPA Images pic)
KUALA LUMPUR: Data centres in Malaysia are estimated to require over US$20 billion (US$1=RM4.09) in funding for powered shells and equipment over the next three years, based on the estimated capacity addition of around two gigawatts (GW), according to S&P Global Ratings.
Powered shells and equipment include the facility shell, power and cooling infrastructure, and networking and storage equipment.
S&P Global Ratings said the funding quantum runs higher when chips are included – possibly one to four times the cost of the powered shell, depending on the type of chips used.
"We expect such funding needs to exceed domestic banks' concentration limits per sector, which we assume to be at an aggregate of about US$30 billion.
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