The Kuala Lumpur data center colocation market is projected to be worth $300 million in 2025 and is expected to reach $1.1 billion by 2030
In sum – what to know:
Kuala Lumpur market accelerating – Forecast to grow from $300M in 2025 to $1.1B in 2030, a 31% CAGR, fueled by hyperscale and AI infrastructure investment.
Jakarta stabilizing, then expanding – Expected to rise from $507M in 2025 to $856M by 2030, with renewed Chinese and U.S. hyperscaler activity and AI-native entrants.
Regional spillover effect – Both cities are emerging as strategic hubs, drawing demand overflow from Singapore and enabling new deployment and interconnection patterns.
Malaysia’s capital Kuala Lumpur, and Jakarta, the capital city of Indonesia, are emerging as ley data center markets in Southeast Asia, with rapid growth driven by hyperscale cloud expansion and rising demand for AI infrastructure, according to a recent report by Structure Research.
The independent research firm noted that the Kuala Lumpur data center colocation market is projected to be worth $300 million in 2025 and is expected to reach $1.1 billion by 2030, representing a five-year compound annual growth rate (CAGR) of 31%. The report stated that the expected growth is being fueled by hyperscale cloud deployments, AI-driven workloads, and the city’s proximity to Singapore and Johor.
Meanwhile, the Jakarta data center colocation market is forecast to be worth $507.2 million in 2025, rising to $856 million by 2030, expanding at a five-year CAGR of 11%. The market continues to expand steadily, with hyperscale activity stabilizing after a slowdown, Chinese cloud providers resuming investment, and AI-native platforms entering the region, according to the research firm.
“Southeast Asia is entering a transformative phase of infrastructure buildout, and both Kuala Lumpur and Jakarta are becoming central to the next wave of growth,” said Philbert Shih, managing director of Structure Research. “Hyperscale and AI infrastructure platforms are reshaping deployment models, and these markets are well-positioned to support new demand patterns, regional redundancy, and diverse workloads.”
In Kuala Lumpur, hyperscale providers — including Alibaba Cloud, AWS, Microsoft, and Google—are expanding with a mix of colocation, built-to-suit, and self-build projects.
Meanwhile, in Jakarta, over 65MW of hyperscale colocation capacity is set to come online in 2025, with overall supply projected to double by 2030. The report highlighted that Chinese clouds are re-engaging with new investments in the Indonesian capital, alongside U.S. hyperscalers and AI-focused providers boosting their presence.
Jakarta is seeing rising interest in interconnection, particularly from global operators and enterprises seeking regional diversification, it added.
