The firm also noted that increased land banking activities reflect a strong pipeline of data centre projects steadily materialising across the nation.

"As the chair for Asean 2025, the pursuit of large-scale data centre investments is at the core of Malaysia's aspirations to be a regional digital powerhouse.

"The country's digital economy is projected to contribute 26 per cent of national gross domestic product (GDP), consistent with the 12th Malaysia Plan (12MP) targets.

"Consequently, we opine that more AI and digital infrastructure will be required to support Malaysia's digital transformation," it noted.

Meanwhile, CIMB Securities also highlighted Knight Frank's Data Centre Research Report 2024, which states that Malaysia has 61 upcoming data centres with a total information technology (IT) capacity of 1,313 megawatts (MW).

Based on a projected date centre capex of US$6 million per MW, the firm estimates that these could provide up to RM35 billion worth of building opportunities over the next five to 10 years.

"Given rising land prices in the Klang Valley and Johor, we understand the concentration of data centre facilities is also spreading towards other emerging markets such as Negeri Sembilan.

"Based on a conservative capex of US$4–US$5 million per MW, we estimate that the pipeline of 1,313 MW data centre projects could translate to up to US$5.3–US$6.6 billion (RM23–RM29 billion) in job opportunities over the next 10 years.

"For exposure, we advise investors to stick with Malaysia's 'Big 3' contractors, namely Gamuda Bhd, IJM Corp Bhd, and Sunway Construction Group Bhd (Sun Con)," it said.