Sungai Samak Estate: AI-Powered Sustainable Data Centre & EV Hub in Malaysia

Overview

Situated in Tanjong Malim, Perak, the Sungai Samak Estate is positioning itself as Malaysia’s most strategically located industrial and digital hub. Known for housing Proton Cars’ national manufacturing facility and soon to welcome BYD’s electric vehicle (EV) production base, this area is now set to host an AI-powered, sustainable data centre. This landmark project links Industry 4.0 manufacturing with next-generation cloud and AI infrastructure, enabling Malaysia to strengthen its role in Southeast Asia’s data centre and advanced manufacturing ecosystem.

Tanjong Malim: Where Automotive Meets AI Infrastructure

From National Cars to Electric Mobility

For decades, Proton City has symbolised Malaysia’s automotive strength. Now, with BYD’s arrival, Tanjong Malim is poised to become a multi-brand EV production powerhouse serving both domestic and Southeast Asian export markets. This automotive transformation demands low-latency computing, predictive analytics, and integrated digital supply chain management — the very capabilities Sungai Samak Estate’s upcoming data centre will deliver.

Strategic Location Advantages

Sungai Samak Estate enjoys multiple location benefits:

• It is less than five kilometres from Proton and BYD’s plants, allowing easy collaboration.
• Direct access to national highways, rail, and port infrastructure ensures fluid logistics.
• Only one hour from Kuala Lumpur, the site offers strong domestic fibre connectivity with rapid links to regional submarine cables for global reach.

Why Sungai Samak Estate Stands Out

AI‑Driven Data Centre Capabilities

The new facility is built for both hyperscaler-level cloud operations and industrial workloads, providing:

• Rapid AI processing to support EV design, autonomous vehicle testing, and smart factory operations.
• High-density compute environments for real-time analytics on manufacturing floors.
• Built-in sustainability systems with onsite solar arrays and advanced water recycling.

Green Energy Integration

Malaysia aims to achieve 31% renewable energy in its national grid by 2025. The Sungai Samak Estate aligns perfectly with this target through:

• Solar power generation to cut carbon output.
• Water-efficient cooling systems to avoid municipal strain.
• Closed-loop cooling processes that serve both data centre infrastructure and industrial manufacturing needs.

The Regional and Global Data Centre Landscape

Globally, the data centre market is forecast to expand from USD 125.35 billion in 2024 to USD 364.62 billion by 2034. Within Southeast Asia, Malaysia is attracting hyperscaler interest thanks to cost efficiency, sustainability policies, and investor-friendly regulations.

Compared with other Malaysian data centre locations, Tanjong Malim offers a clear competitive edge. Here, electricity costs range between USD 0.07 and 0.12 per kWh — often 30% to 40% lower than in Singapore. Water tariffs are similarly attractive, at USD 0.24 to 0.27 per cubic metre, the lowest nationally and supported by abundant river systems.

Johor, while close to Singapore, faces rising power costs at USD 0.09 to 0.14 per kWh and higher water tariffs of USD 0.29 to 0.33 per cubic metre, driven by industrial demand pressures. Cyberjaya’s grid is heavily utilised, with energy costs from USD 0.08 to 0.13 per kWh, but its water tariffs are steep at over USD 0.43 per cubic metre — increasing cooling expenses. Selangor, though well connected via domestic networks, has among the highest water costs in Malaysia at USD 0.40 to 0.45 per cubic metre and lacks direct submarine cable access, which can limit global connectivity potential.

By contrast, Sungai Samak Estate couples low operational costs, scalability through large freehold plots, and integrated renewables, positioning itself as an ESG leader for manufacturing-linked workloads in Malaysia.

Strengthening the EV and Advanced Manufacturing Supply Chain

The Sungai Samak Estate data centre’s co-location with major automotive plants offers unique benefits to the EV industry and broader manufacturing sector:

1. Live production dashboards connect component suppliers with assembly line operations in real time.
2. AI-enhanced defect detection improves quality control before vehicles leave the factory.
3. Optimised logistics networks efficiently coordinate plant-to-port and dealership deliveries.

These capabilities shorten production timelines, increase quality assurance, and enhance Malaysia’s regional competitiveness in both manufacturing output and cloud services.

Government Support & Speed of Deployment

The estate’s development is significantly boosted by InvestPerak’s proactive investor facilitation. This means streamlined approvals for utilities, construction, and regulatory compliance — ensuring the data centre infrastructure is operational in sync with Proton’s plant expansion and BYD’s production ramp-up. For investors, this level of support provides a predictable timeline and reduced entry risk.

Investment Appeal for Global and Regional Players

For hyperscalers, cloud operators, and industrial infrastructure investors, Sungai Samak Estate offers:

• Freehold industrial land adjacent to Malaysia’s top automotive manufacturing zone.
• Ready utilities and connectivity for scalable multi-building campuses.
• Dual demand streams — enterprise cloud workloads and Industry 4.0 manufacturing support.

Instead of choosing between manufacturing proximity and cloud infrastructure readiness, investors gain both in one location, allowing for seamless integration between digital and physical production systems.

Shaping Malaysia’s Industrial‑Digital Future

This convergence of auto manufacturing ambition and AI-driven infrastructure investment places Tanjong Malim at the centre of Malaysia’s next growth wave. The Sungai Samak Estate project is not just about capacity expansion — it’s about creating a digital backbone for smarter, faster, and greener manufacturing across Southeast Asia.

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