ASEAN Data Centers: SG optimizes efficiency; Malaysia adds MWs

Research evidence excerpt

ASEAN Data Centers: SG optimizes efficiency; Malaysia adds MWs

J P M O R G A N Asia Pacific Equity Research

07 July 2026

ASEAN Data Centers

SG optimizes efficiency; Malaysia adds MWs

Singapore’s tightening of efficiency standards reinforces our positive view on Malaysia

ACMalaysia’s data center (DC) sector. We see Singapore’s proposed power usage Yen Voo, CFA, CA

effectiveness (PUE) requirements of ~1.25-1.3 (vs Malaysia’s 1.4 threshold for (60-3) 2718 0914

hyperscalers) as a structural catalyst that sharpens the roles of both markets. Singapore yen.voo@jpmorgan.com

remains the region’s premium DC hub, optimizing scarce land and power resources, JPMorganX) Securities (Malaysia) Sdn. Bhd. (18146-

while Malaysia is emerging as the preferred destination for incremental hyperscale

Nigel Ng

and AI capacity, supported by lower development costs (US$7m/MW vs Singapore’s (60-3) 2718 0962

US$12m/MW, per Cushman & Wakefield estimates), faster execution and improving nigel.ng@jpmorgan.com

renewable energy access. In short, Singapore optimizes every MW; Malaysia JPMorgan Securities (Malaysia) Sdn. Bhd. (18146-

X)

captures the next MW. We remain constructive on both markets, with SCGB (OW)

as our preferred Malaysia DC pure-play and KDCREIT (OW) as our preferred Samuel Tan

(60-3) 2718 0781

Singapore DC exposure. samuel.tan@jpmorgan.com

• Singapore: Efficiency tightening, pricing power. Globally, Singapore ranks JPMorganX) Securities (Malaysia) Sdn. Bhd. (18146-

among the most expensive data center markets at US$330-475/kw/month, with ASEAN DC

rents more than double that of developed markets such as Sydney and Northern AC Terence M Khi

Virginia. Near-full occupancy and firm reversions further signal a structurally

(65) 6882-1518

tight market.