Cybersecurity at the core for data centers in Malaysia

According to Sarene Lee, Country Manager, Malaysia at Palo Alto Networks, as Malaysia cements its position as a regional data hub, the imperative for robust cybersecurity measures grows in tandem with the sector's expansion.

NVIDIA, Amazon Web Services (AWS), Google, Oracle and Microsoft are just among the few tech giants that have invested in data centers in Malaysia in the past few years. In 2024, the country experienced record growth in its data center industry, with 2025 expected to most likely see more investments coming in as companies demand more compute to run AI workloads.

Regionally, the Asia Pacific data center market is growing rapidly, with a 300% increase in capacity over the past five years. In Southeast Asia, Malaysia is expected to become Asia's third-largest data center market, driven by increasing demand for digital infrastructure.

While the surge in data center investments is a boost for the country’s economic growth, it also establishes Malaysia as a leader in the AI and cloud computing revolution. A preferred destination for data center investments, the industry is driven by strategic advantages such as competitive energy pricing, an abundance of affordable industrial land, and a supportive policy environment.

At the same time, government initiatives like the Malaysia Digital Economy Blueprint (MyDIGITAL) and the National Digital Network (Jendela) further underscore the nation’s commitment to fostering a robust digital ecosystem.

Securing data centers

With most of the data centers being developed expected to go live this year and 2026, there is a growing need for ensuring stronger cybersecurity measures are in place to safeguard Malaysia’s rapidly growing digital infrastructure. Apart from securing the data centers themselves, ensuring the critical infrastructure and supply chain for the data centers are also well prepared to deal with any potential cyber threats.

Moreover, the intersection of AI, cloud computing, and data centers presents both unprecedented opportunities and complex challenges for both operators and customers as well. Emerging technologies are not only driving innovation and efficiency but also expanding the potential attack surface for cyber threats. Furthermore, the exponential growth in data volumes and the increasing sophistication of AI models necessitate a paradigm shift in cybersecurity approaches.

From the government’s perspective, Malaysia has introduced a comprehensive cybersecurity bill that aims to bolster the country's digital defenses and is poised to set new regional standards for cybersecurity practices. For companies operating in Malaysia's blossoming data center sector, this development underscores the need to proactively implement cutting-edge security protocols and ensure compliance with impending regulatory requirements.

“The recently passed cybersecurity bill represents a crucial step towards creating a safer digital ecosystem, setting the stage for Malaysia's data centers to power the digital economy securely and sustainably. However, legislation alone is insufficient; organizations must adopt a proactive stance, leveraging cutting-edge technologies like AI and machine learning to fortify their defenses,” said Lee.

As organizations develop AI strategies, Lee suggested the need to have a strong cybersecurity plan as part of the strategy. This includes deploying AI-powered security measures to detect and neutralize attacks in real-time, including sophisticated web-based threats, zero-day threats, command-and-control attacks and DNS hijacking attacks.

For data centers and customers, they should also be using securing AI by design. This includes building AI systems with security from the ground up ensures protection from the design phase to deployment, minimizes data exposure, and enhances compliance with regulations.

Organizations should also simplify and optimize with GenAI. For example, the use of GenAI copilots can empower security teams with enhanced threat detections, automating security measures, actionable insights, and guided actions, improving efficiency and response times.

“By adopting these strategies, organizations can safeguard their operations and contribute to a more secure and resilient digital ecosystem, further enhancing Malaysia's appeal as a trusted hub for data center investments,” added Lee.

For Lee, as the data center sector continues to grow, driven by investments in AI, cloud computing, and digital transformation, the synergy between technological advancement and security will be critical.

“By embracing a holistic approach to cybersecurity, Malaysia not only protects its blooming data center industry but also enhances its reputation as a trusted digital hub on the global stage,” she concluded.