Malaysia Data Center Colocation Market - Supply & Demand Analysis 2025-2030

MALAYSIA DATA CENTER COLOCATION DEMAND AND SUPPLY HIGHLIGHTS

The Malaysia data center colocation market size was valued at USD 730 million in 2024 and is expected to reach USD 3.52 billion by 2030, growing at a CAGR of 29.98% during the forecast period. Malaysia became a major colocation data center hub in Southeast Asia, as of May 2025, accounting for around 45 operating colocation data center facilities. Cyberjaya leads the Malaysia data center colocation market with around 18 data center facilities. AirTrunk, Princeton Digital Group, Bridge Data Centres, DatOne (GDS Services), YTL Data Centers, NTT DATA, TMOne, Vantage Data Centers, Keppel Data Centres, AIMS Data Centre, and Equinix are some major colocation providers in Malaysia.

The Malaysian colocation data center market is growing due to the spillover demand from Singapore. The average occupancy of data center facilities is expected to reach around 91% by 2030. Furthermore, in July 2025, the Malaysian government announced new tariffs for data centers, under which energy costs are expected to increase by approximately 10%–14%. Under the new tariff system, data centers with capacities over 100 MW will fall under the ultra-high voltage category, leading to an increase in OPEX of around $15–$20 million per annum. In addition, a monthly surcharge will also be imposed, driven by fluctuations in fuel prices and foreign exchange rates.

The Malaysia data center colocation market is growing rapidly, driven by factors such as growth in the adoption of AI in Malaysia, digitalization initiatives, data localization, and government support are driving the data center market growth, advancements in network connectivity & 5G services. For instance, in November 2024, the Malaysian government announced the launch of the National Artificial Intelligence Office (NAIO) in December 2024. Also, in November 2024, the Malaysian government announced its goal to achieve 31% and 40% renewable energy capacity by 2025 and 2035, respectively. Malaysia has committed to reaching net-zero greenhouse gas emissions by 2050, positioning itself as a responsible player in the global effort to combat climate change, despite contributing only 0.8% of the global emissions. Furthermore, the 2025 Malaysian budget will allocate approximately USD 2.20 million to the NAIO to support the efforts in promoting AI adoption through collaborations with academia and industries.

WHAT'S INCLUDED?

1. Transparent research methodology and insights on the market's colocation of demand and supply.
2. Market size is available in terms of utilized white floor area, IT power capacity, and racks.
3. The market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy %.
4. The study of the existing Malaysia data center market landscape and insightful predictions about industry size during the forecast period.
5. An analysis of the current and future colocation demand in Malaysia by several industries. 
6. Study on the sustainability status in the region
7. Analysis of current and future cloud operations in the region.
8. Snapshot of upcoming submarine cables and existing cloud-on-ramps services in the region.
9. Snapshot of existing and upcoming third-party data center facilities in Malaysia
10. Facilities Covered (Existing): 45
11. Facilities Identified (Upcoming): 38
12. Coverage: 5+ States
13. Existing vs. Upcoming (White Floor Area)
14. Existing vs. Upcoming (IT Load Capacity)
15. Data Center Colocation Market in Malaysia
16. Colocation Market Revenue & Forecast (2024-2030)
17. Retail Colocation Revenue (2024-2030)
18. Wholesale Colocation Revenue (2024-2030)
19. Retail Colocation Pricing along with Add-ons
20. Wholesale Colocation Pricing, along with the pricing trends
21. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the Malaysian data center colocation market.
22. Competitive landscape, including industry share analysis by the colocation operators based on IT power capacity and revenue.
23. The vendor landscape of each existing and upcoming colocation operator is based on the existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.

TARGET AUDIENCE

1. Real Estate Investment Trusts
2. Construction Contractors
3. Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate & Governments Agencies