Australia's AirTrunk to add two Malaysia data centres in $3bn expansion
KUALA LUMPUR, April 30, 2026 (BSS/AFP) - Australian data centre operator AirTrunk said Thursday it will invest US$3.0 billion to build two new "hyperscale" data centres in Malaysia, doubling its footprint in the country.
The two new facilities, to be built in Johor Bahru in southern Malaysia, will have a combined capacity of more than 280 megawatts and will be located near the company's two existing campuses, it said in a statement.
Between the four campuses, AirTrunk will have more than 700 megawatts of capacity, bringing the Sydney-based firm's total investment in Malaysia to approximately US$6.8 billion, it added.
"Malaysia has set a clear ambition to lead in AI, and we're investing in that vision for the long term, both within Johor and across the country in time," Robin Khuda, AirTrunk's founder and chief executive officer, said in the statement.
The expansion follows AirTrunk's announcement of its entry into India last week, where it plans to invest more than US$5 billion in the near term.
Malaysia accounts for more than half of under-construction data centre capacity among five Southeast Asian countries, including Indonesia, Thailand, the Philippines and Vietnam, according to market intelligence firm DC Byte.
The building boom has been particularly rapid in Johor, the sprawling Malaysian state that sits just across from Singapore and is easily accessible via the city-state's Changi Airport.
Malaysian Prime Minister Anwar Ibrahim welcomed the investment on Thursday, saying it is "believed to further strengthen Malaysia's position as a competitive, progressive, and highly capable regional digital hub".
Writing on Facebook, Anwar said: "This decision reflects investors' confidence, especially global technology companies, in Malaysia's advantages as a strategic partner, as the government continues to refine policies and the level of efficiency in the development and operation of data centers."
Johor state officials have imposed tighter requirements on water and power use for the new data centres in order to stop them from straining local resources.
Global tech giants Microsoft and Nvidia are among those that have invested in data centres in Malaysia.