Key Takeaways
- Malaysia's Communications Ministry and MIDA indicate that around 17 new data centres are expected to land in Selangor, with South Selangor emerging as the country's busiest digital-infrastructure corridor.
- The Sepang, Dengkil and Kuala Langat belt near KLIA is attracting hyperscale interest thanks to a rare combination of power capacity, fibre connectivity and large, contiguous land parcels.
- IOI Properties agreed to sell roughly 136 acres in Banting to Bridge Data Centres for about RM740 million, equal to roughly RM115–137 per sq ft (EdgeProp, March 2026).
- NCT Alliance signed a term sheet to sell a ~100-acre parcel for an up-to-800 MW data centre inside NCT Smart Industrial Park (NSIP), per NCT.
- Data-centre demand is tightening supply and lifting the strategic value of nearby industrial land and factory units across the corridor.
Why Selangor became Malaysia's data-centre frontier
For years, Johor's Iskandar zone dominated headlines as the entry point for hyperscale data centres flowing across the Causeway from Singapore. In 2025 and 2026, the centre of gravity began shifting north-west. According to figures attributed to Malaysia's Communications Ministry and the Malaysian Investment Development Authority (MIDA), roughly 17 new data centres are expected to be developed in Selangor, a pipeline that, if realised, would reshape the state's industrial landscape.
The reason is structural. A data centre is not a factory that needs cheap labour; it is a machine that needs three scarce inputs in abundance: electricity, connectivity, and land. Selangor, and South Selangor in particular, happens to sit at the intersection of all three.
Power, fibre and land: the three-way fit
Power. Hyperscale and AI-grade campuses draw hundreds of megawatts. Proximity to existing grid infrastructure, substation capacity and the ability to negotiate dedicated supply are decisive. South Selangor's corridors were master-planned around dual-source electricity and heavy industrial loads, which lowers the cost and time of energising a campus.
Connectivity. Data centres live or die on fibre. The corridor's proximity to Cyberjaya and Putrajaya, Malaysia's original digital-government cluster, means dense fibre backbones and low-latency routes to the wider region already exist.
Land. Hyperscalers want large, contiguous, flat parcels with clean title and clear flood profiles. South Selangor still has tracts measured in the hundreds of acres, something the Klang Valley's mature core can no longer offer at scale. Just as importantly, that land needs the right risk profile: a data centre that runs 24/7 cannot tolerate flood exposure, so master-planned parks engineered above the 100-year flood level have a clear edge over raw greenfield sites.
The KLIA corridor effect
The land around Kuala Lumpur International Airport (KLIA) has quietly become a digital-infrastructure spine. Districts such as Sepang, Dengkil and Kuala Langat combine airport-grade connectivity with room to grow. This is also the footprint of the Integrated Development Region in South Selangor (IDRISS), which Invest Selangor frames as 16,369.58 acres carrying an estimated RM57.7 billion in gross development value across nine high-impact projects. Data-centre and digital-infrastructure investment is layering directly onto that master plan.
It is worth understanding why the airport itself matters so much. A data-centre campus is, in part, a logistics operation: servers, transformers, generators and cooling plant are imported in volume, often on tight build schedules. Sitting roughly 12 km from KLIA shortens the inbound supply chain for that hardware while keeping the campus close to the engineers and managed-service teams already clustered around Cyberjaya. Add airport-grade redundancy in roads and utilities, and the corridor reads less like farmland on the city's edge and more like purpose-built digital real estate.
The deals putting numbers on the boom
Two transactions in particular show how real, and how priced, the boom has become. Each one converts the abstract "17 data centres" headline into hard acreage and ringgit, which is what land owners and factory buyers actually need to benchmark against.
IOI Properties → Bridge Data Centres, Banting
In a deal reported by EdgeProp in March 2026, IOI Properties agreed to dispose of approximately 136 acres in Banting to Bridge Data Centres for around RM740 million. On a per-square-foot basis, that works out to roughly RM115–137 psf for industrial-zoned land, a benchmark that helps anchor how the market is repricing large South Selangor parcels for data-centre use.
NCT Alliance term sheet inside NSIP
Closer to the airport, NCT Alliance, the Bursa Malaysia-listed parent of NCT Group / NCT Land, signed a term sheet to sell a parcel of roughly 100 acres for an up-to-800 MW data centre inside NCT Smart Industrial Park (NSIP) in Sepang, per NCT. NSIP is a leasehold, master-planned managed industrial park within IDRISS, sitting around 12 km from KLIA and within roughly 5 km of the MEX, ELITE, NKVE, KESAS and PLUS highways. The site is engineered to sit above the 100-year flood level with a Blue & Green Force canal flood-mitigation system, a profile that matters to power-hungry, uptime-sensitive tenants.
| Item |
Location |
Size |
Headline figure |
~Per sq ft |
Source |
| IOI Properties → Bridge Data Centres |
Banting, Kuala Langat |
~136 acres |
~RM740 million |
~RM115–137 psf |
EdgeProp (Mar 2026) |
| NCT Alliance DC term sheet |
NSIP, Sepang |
~100 acres |
Up-to-800 MW data centre |
n/a |
per NCT |
| Selangor DC pipeline |
Statewide |
~17 new data centres |
, |
, |
Communications Ministry / MIDA |
| IDRISS master plan |
South Selangor |
16,369.58 acres |
~RM57.7B GDV (9 projects) |
, |
Invest Selangor |
What the boom means for nearby industrial land and factory values
For owners and buyers of industrial property along the corridor, the data-centre wave has several second-order effects.
1. Supply tightens and large parcels reprice
When a single buyer can absorb 100–136 acres in one transaction, the pool of large, ready-to-build industrial land shrinks fast. The IOI–Bridge benchmark of ~RM115–137 psf gives the market a fresh reference point for what hyperscalers will pay, and that reference tends to pull surrounding land values upward.
2. Infrastructure spillover lifts the whole corridor
Data centres force the upgrade of substations, fibre routes and roads. Factories and warehouses sharing the same corridor inherit better power redundancy, dual-source electricity and connectivity, utilities that are expensive to retrofit and increasingly demanded by semiconductor, E&E and smart-logistics tenants.
3. Clustering attracts the supply chain
A data-centre anchor pulls in cooling, electrical, security and IT-services vendors, plus data-centre-adjacent light manufacturing. Inside NSIP, the target tenant mix already spans semiconductor, E&E, smart logistics, IR4.0 and clean light/medium manufacturing, so an 800 MW campus next door reinforces, rather than competes with, the factory ecosystem.
4. ESG and uptime credentials become table stakes
Both data centres and modern MNC factories now screen sites on green and resilience criteria: solar-ready infrastructure, low-carbon design and engineered flood mitigation. Parks built to those standards from day one carry a durability premium as the corridor matures.
5. Timing favours the early mover
Land repricing rarely happens evenly. The first large transactions, like IOI–Bridge in Banting and the NCT term sheet in Sepang, set the reference points; the broader market then adjusts over the following quarters as more of the 17-centre pipeline converts from announcement to ground-breaking. For buyers who need a factory in the corridor anyway, that pattern argues for moving while the surrounding park inventory is still being priced against industrial rather than data-centre benchmarks.
For factory buyers, the practical takeaway is that industrial land near a confirmed data-centre anchor is becoming scarcer and more strategically valuable, which strengthens the case for securing a unit in an established park rather than waiting.
Explore the corridor
If you want to position inside this corridor, start with the NCT Smart Industrial Park project hub, browse factories for sale in Sepang, or widen the search to factories for sale across Selangor. Indicative NSIP units start from RM5,108,000 for a 2-storey semi-detached factory; full price lists and any applicable discounts are available on request.
Industrial land is also available at NCT Smart Industrial Park, from ~5 to 100+ acres at approximately RM 110 psf, sized to your requirement (ideal for build-to-suit plants, data centres and logistics hubs). View the industrial land listing.
Frequently asked questions
How many new data centres are expected in Selangor?
Figures attributed to Malaysia's Communications Ministry and MIDA point to around 17 new data centres in the pipeline for Selangor, concentrated in the South Selangor corridor near KLIA.
Why is South Selangor attractive for data centres?
The Sepang, Dengkil and Kuala Langat belt offers the three things hyperscalers need most, grid power, fibre connectivity (anchored by nearby Cyberjaya and Putrajaya) and large, contiguous land parcels, all within roughly 12 km of KLIA.
How big is the IOI Properties data-centre land deal?
Per EdgeProp (March 2026), IOI Properties agreed to sell about 136 acres in Banting to Bridge Data Centres for roughly RM740 million, equivalent to about RM115–137 per sq ft.
Is NCT building a data centre?
Per NCT, NCT Alliance signed a term sheet to sell a roughly 100-acre parcel for an up-to-800 MW data centre inside NCT Smart Industrial Park in Sepang. It is a term-sheet-stage land transaction, not an NCT-operated facility.
Will the data-centre boom raise factory prices nearby?
It is putting upward pressure on large industrial parcels as supply tightens and infrastructure improves. To explore current options and pricing, contact our team.