Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Malaysia, once a hotspot for data centre investments, is reining in expansion as it faces power and water constraints and rising geopolitical pressure. The country has attracted major players like Microsoft, Amazon, Google, Tencent, Huawei, and Alibaba, with Johor emerging as a key hub thanks to its proximity to Singapore. According to DC Byte, Malaysia accounts for over two-thirds of Southeast Asia’s data centre capacity under construction, fueled by spillover from costly Singapore.
However, growth has slowed as Malaysia introduces stricter vetting of projects and enforces permits for exports and transits of U.S.-made high-performance chips such as Nvidia’s. These measures follow U.S. concerns that Chinese firms could use Malaysian data centres as backdoors to access restricted AI chips. While Chinese alternatives exist, they remain inferior for training cutting-edge AI models, placing China at a disadvantage compared to U.S. rivals.
China’s “AI Belt and Road” strategy, launched in 2021, encouraged data centre expansion abroad, including in Belt and Road partners like Malaysia. GDS Holdings established a hyperscale campus in Johor, later spinning off its overseas operations into DayOne to reduce exposure to U.S. restrictions. Singapore’s limited new data centre capacity further highlights Johor’s appeal, with 42 projects worth 164.45 billion ringgit ($39.08 billion) approved by mid-2025, representing nearly 79% of Malaysia’s IT capacity.
Yet, Johor authorities have tightened sustainability requirements, rejecting about 30% of applications in 2024 for failing to meet energy and water usage standards. Analysts warn that Southeast Asia may face growing scrutiny and tariffs as U.S.-China trade tensions intensify, potentially curbing the success of Chinese-backed data centre projects in the region.
