-- TANJONG MALIM RISES: AUTOMOTIVE & AI INFRASTRUCTURE IN ONE HUB
Malaysia’s rise in the Southeast Asia data centre arena coincides with a manufacturing renaissance in Tanjong Malim—home to Proton Cars’ national manufacturing facility and the soon-to-be site for BYD’s electric vehicle production for Malaysia and the wider region.
At the heart of this transformation is Sungai Samak Estate, a prime freehold land site positioned just a stone’s throw from Proton’s plant. Its planned AI-driven data centre campus is designed to directly support high-technology manufacturing, streamlining smart factory operations, autonomous logistics, and real-time analytics for both Proton and BYD.
FROM NATIONAL CAR TO NEXT-GEN EV MANUFACTURING
Proton City in Tanjong Malim is more than a symbolic national asset—it is the operational core of Malaysia’s premier automotive production. BYD’s entry into Tanjong Malim confirms the area’s evolution into a multi-brand, high-tech manufacturing hub. This expansion signals increasing demand for integrated digital infrastructure capable of supporting Industry 4.0, autonomous systems, and advanced supply chain coordination.
AI DATA CENTRE - POWERING MANUFACTURING EXCELLENCE
The upcoming Malaysia Data Centre at Sungai Samak Estate is not just another capacity expansion—it’s tailored to provide:
Low-latency processing for AI workloads, vital for modern EV manufacturing and testing.
Onsite renewable power via solar generation, ensuring sustainability targets are met.
Integrated water recycling systems, critical for cooling both data infrastructure and serving industrial processes.
Its close proximity to Proton and BYD’s facilities means manufacturers can harness real-time analytics, predictive maintenance platforms, and automated quality control without geographic or network delays.
REGIONAL MARKET CONTEXT
Globally, data infrastructure is booming, with the market forecast to surge from USD 125.35 billion in 2024 to USD 364.62 billion by 2034. Within Southeast Asia, Malaysia is emerging as a prime choice for hyperscalers, thanks to cost advantages, sustainability policies, and favourable investment frameworks.
For areas like Tanjong Malim, already anchored by high-tech manufacturing, the integration of a localised data hub marks a logical next step—bridging physical production and digital optimisation.
COMPARING MALAYSIA’S DATA CENTRE LOCATIONS
Tanjong Malim - Sungai Samak Estate
Energy Cost: USD 0.07-0.12/kWh (30-40% cheaper than Singapore)
Water Tariff: USD 0.24-0.27/m³ ? (Lowest nationally; abundant river systems)
Sustainability Edge: ? Onsite solar + recycling = ESG leadership for manufacturing-linked workloads.
Connectivity: ? Fibre backbone, 1 hour from KL, rapid link to submarine cables.
Expansion Potential: ?️ Large freehold plots; scalable campus builds serving both hyperscale and industrial clients.
Johor
Energy Cost: USD 0.09-0.14/kWh (Cost pressure mounting)
Water Tariff: USD 0.29-0.33/m³ ? (Higher; constrained by industrial demand)
Sustainability Edge: Limited onsite renewables; land competition rising.
Connectivity: ? Strong Singapore adjacency; congestion during peak periods.
Cyberjaya
Energy Cost: USD 0.08-0.13/kWh (Grid competition high)
Water Tariff: USD 0.43/m³ ? (High cooling cost burden)
Sustainability Edge: Reliant on offsite power; slower ESG adoption.
Connectivity: ? Dense fibre; latency affected by urban congestion.
Selangor
Energy Cost: USD 0.08-0.14/kWh (Moderate; abstraction risk growing)
Water Tariff: USD 0.40-0.45/m³ ? (Among highest in Malaysia)
Sustainability Edge: Green policies exist; fewer renewable-ready sites.
Connectivity: ? Good domestic network; lacks direct submarine cable entry.
SUPPORTING THE EV SUPPLY CHAIN
With BYD’s Tanjong Malim production line set to serve Malaysia and Southeast Asia, data centre capabilities at Sungai Samak Estate offer a direct competitive advantage:
Linking component suppliers with real-time production dashboards.
Enabling AI-driven defect detection during assembly.
Optimising logistics between plant, port, and dealership networks.
SUSTAINABILITY BUILT-IN
Malaysia’s goal to achieve 31% renewable energy in its grid by 2025 dovetails with Sungai Samak Estate’s infrastructure plan. Onsite solar provisioning reduces carbon footprint for all industrial and data workloads. Integrated water recycling secures cooling capacity without straining municipal resources—a stark contrast with Johor, Cyberjaya, and Selangor where water tariffs and scarcity are rising.
POLICY & SPEED OF DEPLOYMENT
Backed by InvestPerak’s investor-focused facilitation, the estate’s AI data centre development enjoys streamlined approvals. This is critical to aligning with the rapid manufacturing timelines of Proton’s expansion and BYD’s entry—ensuring the digital backbone is live as production scales.
THE INVESTMENT CASE
For hyperscalers, cloud operators, and industrial infrastructure developers, owning freehold land with assured utilities and strategic co-location next to manufacturing giants is a rare opportunity.
In Tanjong Malim, this means tapping into both the fastest-growing Malaysia Data Centre corridor and the region’s leading automotive innovation cluster—serving dual demand streams from enterprise cloud and Industry 4.0 manufacturing.
SHAPING MALAYSIA’S INDUSTRIAL-DIGITAL FUTURE
The convergence of high-technology automotive manufacturing with AI-powered data processing puts Tanjong Malim in a unique position. Sungai Samak Estate’s development will not only bolster the Southeast Asia data centre network but directly enhance the operational efficiency of Proton and BYD’s plants.
Explore the opportunity at sgsamak.com and initiate discussions via sgsamak.com/contact-us to secure a role in Malaysia’s evolving industrial-digital powerhouse.
Contact Info:
Name: Holly Lim
Email: Send Email
Organization: Sungai Samak Estate
Address: 2 Jalan Sempurna off Jalan Gombak , Kuala Lumpur, Federal Territory 53000, Malaysia
Website: https://sgsamak.com
Release ID: 89172914