Accra:Malaysia's data centre market is projected to grow at a compound annual growth rate (CAGR) of 33 percent from 2025 to 2030.

According to BERNAMA News Agency, S&P Global Ratings has identified Malaysia as a rapidly expanding data centre market in the region. The growth is attributed to robust internal demand and spillover demand from Singapore, which faces limitations in land and utilities.

S&P Global Ratings director of corporate ratings, Ng Yi Jing, highlighted that Malaysia's data centre growth has entered a 'reset mode' due to stricter regulations following several years of expansion. This rapid growth has also put a strain on Malaysia's power and water resources. Ng noted that countries like Indonesia and Thailand are also poised to benefit from the spillover demand originating from Singapore and Malaysia.

Additionally, Pablo Lutereau, managing director and head of global infrastructure and project finance at S&P Global Ratings, discussed the global surge in artificial intelligence (AI) capital expenditure. Spending is expected to surpass US$1.3 trillion in 2027, driven by internal workloads and contracts with AI labs. AI inference is forecasted to grow at a 35 percent CAGR, outperforming AI training and non-AI workloads.

Lutereau also pointed out the rising off-balance-sheet debt among hyperscalers as they expand data centre and AI infrastructure investments. Microsoft has the highest future lease obligations as of June 2026, at US$329.1 billion, followed by Meta, Oracle, and Amazon. Microsoft also leads in debt capacity, with Alphabet, Meta, Amazon, SpaceX, and Oracle trailing.