“Malaysia is emerging as the preferred destination for incremental hyperscale and AI capacity, supported by lower development costs of US$7 million per MW according to Cushman & Wakefield estimates, faster execution and improving renewable energy access,” JP Morgan says, adding that “Singapore optimises every MW; Malaysia captures the next MW”.
In Singapore, JP Morgan’s preferred data centre exposure is Keppel DC REIT. “We believe redevelopment of older assets, such as KDCREIT’s SGP 1, can offer attractive 7% to 8% ROI,” JP Morgan says.
Malaysia is emerging as a more complete deployment platform, the report says. Malaysia’s structured Tenaga Nasional-led grid framework and Green Lane Pathway enable faster energisation timelines of 3 years vs Thailand’s up to 4 years, while reducing execution uncertainty through a single-utility interface.
With the Corporate Renewable Energy Supply Scheme (CRESS) enabling renewable energy access and the Digital Ecosystem Acceleration (DESAC) improving project economics through investment tax allowances of 60-100% of qualifying capex or preferential tax rates, offsettable against statutory income for up to 10 years, Malaysia is increasingly positioned as the preferred regional platform for hyperscale and AI capacity expansion, JP Morgan says.
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In Malaysia JP Morgan’s preferred exposure is Southern Cables Group (SCGB).
