In the global race to build hyperscale AI data centers, Malaysia has positioned itself as one of the key contenders. A data center boom is underway, the epicenter of which is in the once-sleepy state of Johor in the south, close to Singapore, where palm oil and rubber plantations have made way for sprawling tech parks.

Since Singapore imposed strictures on new data center projects in 2021 (after lifting a moratorium that started in 2019), Malaysia has emerged as Southeast Asia’s digital infrastructure hotspot, drawing investments of more than $23 billion, according to global property consultancy Knight Frank based on company announcements in the past year. That’s more than half of the estimated $44 billion being invested in the region by the likes of Amazon, Google and Oracle.

As these global tech giants pour billions into expanding their data storage footprints, amid soaring demand for cloud computing and AI applications, several Malaysian tycoons, including those with roots in agribusinesses, have latched on to this new wave. Some have expanded into building data centers, while others are cashing in by selling land parcels to companies that are constructing them.