Malaysia and the United Arab Emirates (UAE) have solidified their collaboration in the digital infrastructure sector through the signing of a Memorandum of Understanding (MoU) aimed at advancing investment cooperation in data centre development. The Ministry of Investment, Trade and Industry (MITI) of Malaysia and the Ministry of Investment of the UAE formalized this strategic partnership, marking a significant milestone in the bilateral economic relationship between the two countries.

The MoU, signed by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz and UAE’s Minister of Investment, Mohamed Hassan Alsuwaidi, underscores the shared commitment to fostering robust collaboration and knowledge exchange in the digital infrastructure domain. It sets the stage for the development of data centres in Malaysia, with anticipated projects expected to achieve a total capacity of 500 megawatts.

Malaysia’s attractiveness as a regional hub for data centres in Southeast Asia is underscored by its robust digital and physical infrastructure, regulatory framework, and government-backed initiatives to promote investment in this sector. The growing demand from regional small and medium enterprises (SMEs) further solidifies Malaysia’s position as a key player in the digital economy landscape.

Moreover, the MoU aligns with Malaysia’s broader strategic objectives, including the advancement of artificial intelligence (AI) in line with the New Industrial Master Plan (NIMP) 2030. This commitment reflects Malaysia’s proactive approach to enhancing the capacity of industries, SMEs, and startups in AI, thereby fostering innovation and competitiveness.

Tengku Zafrul highlighted the significance of Malaysia’s collaboration with the UAE in positioning the country as a preferred destination for digital investments. By establishing itself as a regional data centre hub, Malaysia aims to capitalize on the burgeoning digital economy in the ASEAN region, projected to reach US$1 trillion by 2030.

Meanwhile, Mohamed Hassan Alsuwaidi emphasized that the collaboration would not only strengthen bilateral ties but also leverage Malaysia’s potential as a premier location for data centres in the Asia-Pacific region. As an emerging data hub in Southeast Asia, Malaysia’s digital infrastructure is poised for further growth, aligning with the shared priorities and interests of both nations.

The MoU underscores the robust trade relations between Malaysia and the UAE, with a significant increase in non-oil trade volume. With the UAE being Malaysia’s second-largest trading partner in the Middle East, and Malaysia playing a pivotal role in the UAE’s exports and re-exports in the ASEAN region, this partnership is poised to drive mutual economic growth and prosperity.