Tanjong Malim: Malaysia’s Prime Location for AI-Powered, Solar-Supported Development
As artificial intelligence (AI) continues to transform the global economy, the need for scalable, energy-efficient infrastructure is growing rapidly. According to the International Monetary Fund (IMF), AI workloads consume 5 to 10 times more energy than traditional computing, and by 2030, global data centres may require up to 1,500 terawatt-hours of electricity per year—equal to India’s entire energy demand.
This surge in demand has made clean, reliable power the new bottleneck for AI expansion. In Malaysia, Tanjong Malim has emerged as a unique solution: five elevated, contiguous, freehold plots—spanning 376 acres—that are perfectly suited to house both solar farms and AI data centres. These plots not only provide the physical space needed, but also offer natural and infrastructural advantages that few other sites can match.
Why Tanjong Malim? The Advantages Are Clear
Tanjong Malim is strategically located just 70 kilometers north of Kuala Lumpur, easily accessible by highway and rail. But what sets it apart is its elevation: the five plots sit 70 meters above sea level, offering flood protection, better airflow for cooling, and unshaded terrain ideal for solar energy generation.
Ideal for Solar Power: Unblocked, high-ground terrain provides excellent solar exposure. The combined plots can generate 35MW+ of solar energy, enough to meet the needs of multiple hyperscale data centres.
Abundant Cooling Water Supply: The site benefits from 2,500mm of rainfall annually and proximity to the Sungai Bernam, ensuring ample water for data centre cooling systems.
Grid Access: Close proximity to Tenaga Nasional’s 500kV transmission lines allows for immediate grid connectivity or independent, localized power use.
Zoning Flexibility: The land is already zoned for mixed-use, allowing for integrated solar, industrial, data centre, and residential development without additional regulatory delay.
Lower Cost: Land in Tanjong Malim is up to 70% more affordable than sites in Johor or Cyberjaya, reducing upfront capital costs.
Positioned to Meet Global AI Demand
According to the IMF’s 2025 working paper, regions that offer scalable energy infrastructure will be the primary beneficiaries of AI-led economic growth. The IMF estimates AI could boost global GDP by up to 4%, but warns that emerging markets without energy resilience risk being left behind.
Tanjong Malim directly addresses these concerns. Its elevated terrain is naturally flood-proof, and its large, consolidated land area supports master-planned development. Unlike urban centres already suffering from energy bottlenecks, Tanjong Malim offers a clean slate for digital infrastructure, aligning with both Malaysia’s Net Zero 2050 goals and growing demand for renewable-powered data processing.
Comparison with Johor and Other Traditional Tech Hubs
While Johor Bahru and Cyberjaya have historically been Malaysia’s digital and industrial centres, they now face significant limitations:
Water Shortages: Johor experienced reservoir levels dropping to 40% in April 2025, threatening existing cooling systems.
Power Supply Constraints: Moody’s reports that power availability is the “single biggest constraint” to new data centre development.
Regulatory Rejections: Since 2023, 30% of data centre applications have been rejected due to sustainability shortfalls.
Soaring Land Prices: Johor land prices have increased 300% since 2021, making new developments economically challenging.
In contrast, Tanjong Malim offers a more sustainable, scalable, and cost-effective alternative, supported by an ecosystem of industrial and academic institutions, including Proton City and Universiti Pendidikan Sultan Idris (UPSI).
Backed by Federal Development Initiatives
Tanjong Malim is part of the Automotive High-Tech Valley (AHTV) project, a collaboration between Malaysia’s DRB-HICOM and Geely. This initiative is already drawing over RM40 billion in investment and is projected to attract 50,000 skilled workers by 2027. These workers—engineers, data scientists, technicians—form the human capital needed to support both AI infrastructure and clean energy operations.
AHTV’s focus on high-tech, electric, and autonomous vehicles dovetails perfectly with AI development, making Tanjong Malim a potential hub not only for data centres but for chip manufacturing, AI model training, and smart logistics.
Connectivity and Infrastructure
Tanjong Malim’s location ensures seamless connectivity:
Highway Access: Via the North-South Expressway, reaching Kuala Lumpur or Penang within hours.
Rail Access: Via the KTM Komuter line, providing direct connection to Port Klang and Kuala Lumpur.
Telecom Readiness: Existing fibre and broadband infrastructure can be rapidly scaled for hyperscale data centre requirements.
In addition, the area offers ample space for support industries, including clean manufacturing, logistics, and residential facilities for knowledge workers.
A Future-Proof Site for AI and Energy Convergence
The convergence of solar and AI in a single location offers multiple long-term benefits:
Energy Independence: Generate renewable energy on-site to avoid future grid disruptions or carbon penalties.
Scalable Data Infrastructure: Host 100MW+ Tier IV data centres with advanced cooling and connectivity options.
Long-Term ROI: As land scarcity intensifies, early acquisition secures appreciation potential and first-mover advantage.
Sustainability Leadership: Align with ESG mandates and global best practices, attracting top-tier investors and clients.
This approach makes Tanjong Malim not just a site—it becomes a strategic digital and clean energy cluster, ready to power Malaysia’s role in the global AI economy.
Call to Action for Developers, Investors, and Policymakers
The opportunity to develop these five plots won’t remain open for long. As major hyperscale operators like Google, Microsoft, and Amazon Web Services look for new sites across Asia-Pacific, locations with clean energy access and development readiness are in short supply.
Investors and developers can act now to:
Secure land rights and perform due diligence
Conduct solar and environmental feasibility studies
Initiate partnerships with Tenaga Nasional and local authorities
Align project timelines with incoming workforce from Proton City and AHTV
For more information, including technical site layouts and investment briefings, visit sgsamak.com or email [email protected].
Conclusion: Building Malaysia’s Next Growth Engine
Tanjong Malim’s five elevated plots offer an unparalleled opportunity for visionary development. By combining AI infrastructure and renewable energy in one integrated hub, this site positions itself as Malaysia’s most future-ready location for digital growth.
With land, labour, infrastructure, and government support all aligned, Tanjong Malim is ready to lead the way. In the race to build sustainable digital infrastructure, this is where Malaysia wins.
Sungai Samak Estate
City: Kuala Lumpur
Address: 2 Jalan Sempurna off Jalan Gombak
Website: https://sgsamak.com