Malaysia's Data Center Capex Likely Resilient Despite Mideast Tensions — Market Talk

Malaysia's data center capital expenditure cycle could remain intact as sustainability-focused facilities drive demand for energy transition and water efficiency projects, despite Middle East geopolitical tensions, analysts at CIMB Securities say. Malaysia's committed maximum data center load could rise ten-fold to 7,100 MW from 710 MW in September 2025, supported by growing interest from U.S. and international operators seeking stable markets for AI-powered infrastructure, Kenny Mak Hoy Ken and Wei Yi Tan say. Larger IT loads and Selangor's 30% local content mandate are also expected to benefit local contractors and equipment suppliers, they say in a note. CIMB expects Gamuda, IJM Corp. and Sunway Construction to remain top picks for turnkey data center projects. (yingxian.wong@wsj.com)