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DayOne Pledges RM28 Billion to Make Malaysia Its Largest Global Data Center Hub
NewDecoded
3 min read
Image by DayOne
DayOne Data Centers Limited has announced a massive RM28 billion investment to establish Malaysia as its primary global operational footprint by the end of 2026. The Singapore-headquartered platform intends to scale its local operations to account for more than half of its total global workforce expansion. This strategic move cements the company's leadership in the regional digital hub and supports the nation's growing AI infrastructure needs.
The expansion will generate over 5,000 jobs across the supply chain, including 200 high-value positions at the Global Shared Services Center in Kuala Lumpur. In Johor, a specialized Regional Operations and Training Hub will focus on upskilling 1,000 engineers to manage AI-ready data centers. These facilities are designed with advanced liquid cooling and high-power density to support demanding modern workloads.
CEO Jamie Khoo emphasized that this commitment is backed by physical infrastructure and a robust talent development pipeline. The company recently secured a landmark agreement with Tenaga Nasional Berhad to source up to 500MW of renewable energy, ensuring sustainable operations. This follows a record-breaking Series C funding round of over US$2 billion as the firm prepares for a potential US public offering.
Government agencies including MIDA and MDEC have formally witnessed these initiatives at the recent Tech and AI Career Expo. Deputy Prime Minister Ahmad Zahid Hamidi noted that such collaborations are vital for building a workforce that can compete on a global scale. The investment reflects a shared vision to enhance the digital backbone of the Malaysian economy through 2026 and beyond.
Beyond its Malaysian core, DayOne is expanding its presence in the SIJORI corridor, which connects Singapore, Johor, and the Riau Islands. The firm is also advancing projects in Japan, Thailand, and Europe to meet the rising demand for hyperscale solutions. More information regarding these developments can be found at the official DayOne newsroom.
This massive capital injection signals Malaysia's transition from a low-cost hosting destination to a sophisticated regional nexus for AI engineering and financial operations. By rebranding from GDS International and restructuring as a Singaporean entity, DayOne has successfully bypassed geopolitical tech constraints, allowing it to tap into Western capital markets while anchoring its growth in the high-demand Southeast Asian corridor. This strategy directly addresses the global AI talent bottleneck by building a domestic pipeline of specialized engineers, ensuring that physical infrastructure is supported by a local workforce capable of managing power-dense, next-generation workloads.
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