KUALA LUMPUR, April 3 -- Malaysia is emerging as a major hub for data centres as global tech companies, particularly from China, invest heavily in computing infrastructure to support artificial intelligence (AI).

The country offers a mix of stable China-Malaysia relations, lower electricity costs, and access to advanced semiconductors unavailable in China due to US export restrictions, making it an attractive destination for Chinese firms, analysts say.

"Chinese companies are the primary clients of data centres in Malaysia and other South-east Asian areas," Joe Gao, a board member of IBuffett Investment Management, which focuses on Chinese AI businesses in the region, told South China Morning Post (SCMP).

Malaysia has seen rapid growth...