MELAKA (Feb 5): Melaka is poised to secure an investment exceeding RM9 billion with plans underway to develop the state’s first artificial intelligence (AI)-driven data centre, marking a major milestone in its digital and industrial transformation.
Chief Minister Datuk Seri Ab Rauf Yusoh announced that Victoria Data Centre, a Hong Kong-based operator, has indicated its intention to build a large-scale facility in Jasin, with an estimated power capacity of around 100 megawatts (MW).
The proposed AI data centre development will be incorporated into Melaka’s 2025 investment pipeline and presented at the upcoming Melaka State Legislative Assembly sitting, he said after attending the Melaka State Executive Council’s “Hebat” engagement programme at the Seri Negeri Complex on Wednesday.
According to the Malaysian Investment Development Authority (Mida), the project will be implemented in multiple phases and involves the construction of three purpose-built data centre buildings with a combined capacity of up to 96MW. Once completed, the development is expected to position Melaka as a competitive regional hub for high-tech digital infrastructure.
Mida noted that the investment stems from recent bilateral discussions between the Melaka state leadership and the Chinese government, and is anticipated to deliver a significant economic uplift by strengthening the state’s digital ecosystem and accelerating AI adoption.
Beyond Melaka, the project underscores Malaysia’s growing appeal as a data centre destination, complementing established digital and industrial clusters in commercial property in KL, office space in Bukit Jalil, and mature industrial land in Selangor. Areas such as factory zones in Puchong and industrial property in the Subang area have already attracted hyperscale and enterprise data centre-related developments due to their connectivity, infrastructure readiness, and access to skilled talent.
Mida added that the Melaka AI data centre is expected to support Industry 4.0 initiatives, facilitate technology transfer, and generate high-value, skilled employment opportunities for the local workforce.
“This development indirectly supports Melaka’s long-term ambition to evolve into a sustainable innovation and technology hub,” the agency said.
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