Anwar Says Global Investor Plans US$50 Billion Tech Investment in Kuching and Peninsular Malaysia

Kuching named in major AI and data centre proposal

A global investor has chosen Kuching in Sarawak and locations in Peninsular Malaysia for a proposed US$50 billion investment in artificial intelligence, new technology and data centres, Prime Minister Datuk Seri Anwar Ibrahim said in Melaka. The amount, given as about RM204.3 billion, would make the proposal larger than Malaysia's entire RM144.4 billion pipeline of approved data centre investment between 2021 and the first half of 2025.

Anwar disclosed the plan at the Sentuhan Kasih MADANI programme and launch of the National Cost of Living Action Plan 2030 at the Hang Jebat Sports Complex. The remarks were dated October 24. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali also attended.

The prime minister said the investor had outlined the proposal during a video conference the previous Tuesday. Describing the investor and the locations selected, Anwar said:

Last Tuesday, one of the world's largest investors held a video conference with me. The investor said he had chosen Kuching, Sarawak and Peninsular Malaysia for an investment worth US$50 billion, one of the largest investments in the region.

The investor's identity, the proposal's finalisation status, its funding and construction schedule, the division of spending between locations and the number of jobs were not disclosed. The immediate development is an investment intention announced by the prime minister, with the commercial and construction details still to come.

For Malaysians, the practical stakes extend from access to better paid technology work to the electricity and water needed to operate large computing facilities. Anwar linked the investment to opportunities for young people, while Bank Negara Malaysia's research identifies both the economic benefits of data centres and the pressures accompanying their rapid expansion.

How large is the proposed investment?

Bank Negara Malaysia's data centre study, titled From Bytes to Bucks: The Economics of Data Centres in Malaysia, records RM144.4 billion in approved investment between 2021 and the first half of 2025. It also puts annual compound growth in Malaysia's operating data centre capacity at 55.6% between 2019 and the third quarter of 2025.

At RM204.3 billion, the investor's proposed package is RM59.9 billion larger, or about 41% above that earlier approval total. The comparison shows the scale of the announcement, although the proposed package covers AI and other technologies as well as data centres, while the central bank's figure covers approved data centre investment.

Investment spending and economic output also measure different things. Spending pays for land, buildings, machinery and services. Gross domestic product, or GDP, measures the value created within the economy. Equipment bought abroad contributes less to domestic production than equipment manufactured locally.

The central bank's staff estimated data centres' direct contribution to GDP at RM14.1 billion in 2025, compared with RM0.9 billion in 2021. Those estimates cover construction, operations and services increasingly supplied locally, while accounting for the cost of imported specialised equipment.

From a video call to a public announcement

Anwar's account places the investor's selection of Malaysia before his public remarks in Melaka. The sequence is short, but it helps separate the discussion with the investor from the subsequent announcement:

• The previous Tuesday: the investor held a video conference with Anwar and said Kuching and Peninsular Malaysia had been selected.
• October 24: Anwar disclosed the US$50 billion proposal while speaking at the cost of living plan launch in Melaka.

Kuching is the only city specifically identified. Johor, already a major centre for computing infrastructure, enters the wider picture because its experience shows how quickly electricity demand can grow as projects accumulate. Anwar's announcement places the proposed investment across Sarawak and the peninsula rather than identifying a single development site.

What could young Malaysians gain?

Anwar said students in schools and universities should recognise the employment opportunities associated with investment in AI, new technology and data centres. He also called for stronger workforce training so Malaysia can move beyond supporting technology activities into work that creates greater value.

Bank Negara Malaysia identifies network specialists, cloud architects, data scientists, engineers, technicians and facility managers among the people employed by data centres. A cloud architect designs how computing services work together, while a network specialist keeps the connections carrying data reliable and secure.

Data centres typically employ fewer people than manufacturing industries because much of their operation is automated or managed remotely, the central bank says. Their employment benefits depend heavily on specialised roles that can command higher pay, along with work generated among suppliers and service providers.

Training therefore connects Anwar's investment ambitions to the prospects of individual students. The central bank recommends closer cooperation between industry and public agencies, easier access to training from cloud service providers, and accredited technical and vocational education. Courses need to prepare people for the equipment and systems employers actually use.

Benefits could reach beyond the server rooms

Data centres are buildings containing computers that store information, run applications and process large amounts of data. AI systems use this computing power to learn patterns and produce responses. Cloud services let businesses rent computing capacity instead of buying and maintaining every machine themselves.

Bank Negara Malaysia describes several routes through which this activity can support local companies. Construction creates demand for cement, steel and glass. Electrical infrastructure requires transformers and cables. Growing demand for computing facilities can also attract manufacturers of server racks, modular equipment and cooling systems.

Once facilities begin operating, software developers, IT consultants and training providers can supply services around them. Smaller businesses may gain access to computing capacity and analytical tools that would otherwise require substantial spending on their own equipment.

Keeping data closer to users can also reduce latency, the delay between sending a request and receiving a response. Faster connections can help online retailers and businesses using systems that must react immediately. The central bank also identifies greater domestic oversight of sensitive banking, healthcare and government information as a benefit of local storage.

Electricity and water set practical limits

Bank Negara Malaysia gives a concrete illustration of resource demand: a data centre with a capacity of 50 megawatts can use electricity equivalent to about 22,000 households and water equivalent to about 2,200 households per day. Servers need continuous electricity, while cooling systems prevent the equipment from overheating.

Large clusters of facilities can therefore compete for infrastructure needed by housing, industrial parks, public amenities and agriculture. The central bank warns that poorly coordinated expansion can strain electricity grids, water systems and land use, potentially increasing costs for other users.

Cleaner electricity is another concern. Malaysia aims to reach net zero emissions by 2050. The central bank says more efficient cooling alone may be insufficient if the industry's expansion continues to rely heavily on electricity generated from fossil fuels.

The government has introduced benchmarks for Power Usage Effectiveness and Water Usage Effectiveness, measures of how efficiently facilities use those resources. These benchmarks also form part of eligibility requirements for incentives under the Digital Ecosystem Acceleration Scheme. The central bank calls for coordination with utilities and greater use of renewable energy.

Johor shows the challenge of connecting new projects

Research firm BMI, part of Fitch Solutions, projects that Johor's data centres could require about 30 terawatt hours of electricity annually by 2031. That would equal 18% of Peninsular Malaysia's electricity supply, compared with 6% in 2026, tripling their projected share.

BMI estimates Johor has about 825 megawatts of operating data centre capacity, with another 3.9 gigawatts expected within three to five years. It warns that the state's data centres could absorb more than 90% of the peninsula's additional electricity generation over the next five years.

Connecting facilities to the grid may be a greater constraint than generating the electricity itself, according to BMI. Tenaga Nasional Bhd plans RM43 billion in grid upgrades, but major electricity infrastructure can take five to 10 years to complete. Data centres can be built faster.

Projects with secured connections, committed tenants and strong financing are consequently better placed to meet their schedules. Restrictions introduced in February 2026 on approvals for new facilities outside AI also show how infrastructure pressures are influencing the industry's development.

Imported equipment affects how much value stays locally

Malaysia imports substantial amounts of specialised data centre equipment because domestic alternatives remain limited. Bank Negara Malaysia says the expansion has contributed to rising capital imports, putting pressure on the current account, which tracks trade in goods and services alongside certain income flows with the rest of the world.

Export earnings can help balance that spending once facilities serve customers abroad. Malaysia's ICT services exports reached RM16.8 billion between January and September 2025, rising 9% from RM15.5 billion in the same period a year earlier. The central bank identifies tentative signs that data centres are contributing to this growth.

Timing matters for the economy. Equipment purchases occur while facilities are being built, whereas service revenue arrives after operations begin. The central bank says construction can take up to three years, leaving a gap between substantial import spending and the resulting export income.

Local manufacturing and services can help Malaysia retain more of the investment's value. The central bank recommends mapping domestic suppliers and their capabilities so operators can find local partners and policymakers can identify gaps. Foreign operators sending profits abroad will also affect income flows over time.

Anwar links investor confidence to household benefits

Anwar said political stability, effective leadership and peaceful relations among Malaysia's ethnic and religious communities help attract investors. He warned that disputes among political leaders could weaken confidence in the country. Explaining that concern, the prime minister said:

If people don't have confidence in this government and if the leadership is constantly quarrelling, investors will not be interested in coming here.

The setting of the announcement connected the investment proposal with the government's cost of living agenda. Anwar said economic growth and investment must produce tangible benefits, including better jobs and higher living standards. He also praised programmes run by the Domestic Trade and Cost of Living Ministry to support people in urban, rural and remote communities.

For Kuching and the peninsula, those benefits depend on several concrete connections: Malaysians gaining the skills to fill specialised jobs, local firms winning supply contracts, businesses using the new computing capacity, and utilities being ready when facilities open. The central bank's research places these links at the centre of turning investment spending into wider economic gains.

Key Points

• Anwar says an unnamed global investor plans US$50 billion in AI, new technology and data centre investment in Kuching and Peninsular Malaysia.
• The proposed RM204.3 billion package exceeds the RM144.4 billion in data centre investment approved between 2021 and the first half of 2025.
• Bank Negara Malaysia identifies specialised jobs, local suppliers and wider business use of cloud services as major routes to economic benefits.
• Electricity connections, water demand, imported equipment and workforce training are central challenges.
• BMI projects Johor's data centres could consume 18% of Peninsular Malaysia's electricity supply by 2031, up from 6% in 2026.
• Anwar says investment must translate into better employment and higher living standards.