The Malaysia data center market size will witness investments of USD 2.25 billion by 2028, growing at a CAGR of 9.41% during the forecast period. Cyberjaya, Johor, and Kuala Lumpur are major Malaysian cities witnessing data center development due to their strategic locations and importance as economic and social capital. The Malaysia data center market is a significantly growing market in the Southeast Asian region. The industry is driven by increasing digitalization initiatives, growing submarine cable connectivity, cloud service adoption, and implementation of advanced technologies such as AI, big data, and IoT. Further, cloud computing has grown significantly, driven by several global cloud service providers and government support. The government is also supporting the growth of cloud computing in the country with its initiative, namely MyGovCloud.

The Malaysia data center market is also witnessing significant growth in 5G connectivity. Telecom operators such as Celcom Axiata Bhd, DiGi Telecommunications, Maxis Bhd, and U Mobile have launched 5G network services in the country. The growth in 5G connectivity will increase demand for low latency service, due to which the market for edge data centers will witness traction in the coming year. The country plans to improve the share of renewable energy in total power production by around 31% in 2025 and 40% in 2035. Also, the country is working on an initiative, namely the grid of the future, with Tenaga Nasional Bhd to develop a smart grid in the country. The government also established Public Sector Data Centre (PDSA) project in 2011 and has installed over 1,000 servers for around 120 agencies. PDSA also established data center services and disaster relief centers for the ICT services for government agencies.

KEY HIGHLIGHTS

• The Malaysia data center market has started witnessing significant growth aided by strong digitalization penetration, adoption of advanced technologies leading to an increase in colocation demand, penetration of cloud computing, growing government strategies, and others.
• The Malaysian government is focusing on the increase in renewable energy generation in the country with different initiatives. The Tenaga Nasional Berhad, with the international REC Standard, launched Green Electricity Tariff Program for residential and commercial users. It will also benefit data center operators to procure green energy for facility operations.
• Malaysia is one of the major locations in Southeast Asia with robust availability of space for data center development. According to the Malaysian Investment & Development Authority, the country has around 600 industrial estates with strong connectivity. The government has also developed several free zones in the country to cater to industrial needs.
• In terms of connectivity, aided by the country's strategic location with several port cities, the country is connected with around 22 submarine cables that connect the country to other countries across the globe. Around three upcoming submarine cables are expected to be ready for service in two to three years.
• The Malaysia data center market has the presence of cloud service providers such as Alibaba, Microsoft, Amazon Web Services (AWS), and Google Cloud that have existing or upcoming cloud regions in the country. These operators also have their on-ramp presence in local colocation data center facilities.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Malaysia colocation market revenue.
• An assessment of the data center investment in Malaysia by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across states in the country.
• A detailed study of the existing Malaysia data center market landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Malaysia
  • Facilities Covered (Existing): 29
  • Facilities Identified (Upcoming): 14
  • Coverage: 7+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Malaysia
  • Market Revenue & Forecast (2022-2028)
  • Retail and Wholesale Colocation Pricing
  • Retail Vs Wholesale Colocation Market
• The Malaysia market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• The Malaysia data center market has the presence of several local and global operators, such as Bridge Data Centres, VADS, TM One, Keppel Data Centres, NTT Global Data Centers, and others.
• Several new investors, such as AirTrunk, Equinix, Infinaxis Data Centre, PP Telecommunication, Regal Orion, GDS Services, Vantage Data Centers, Yondr, and YTL Data Center, have also entered the market for profitability from the prominent growth opportunities in Malaysia data center market. The rapid increase in investors will increase the competitiveness in the market in terms of colocation space supply in the coming years.
• Due to the significant opportunities, the Malaysian market also attracted several joint ventures by local and global investors to construct data centers in the country. In November 2022, DigitalBridge announced the acquisition of a majority stake in Malaysia-based data center operator AIMS Data Centre, and the deal is expected to be closed by H1 2023.
• Operators in the country are also procuring green certificates for their facilities for sustainable operations. For instance, under the government’s green electricity tariff scheme, in April 2022, Telekom Malaysia secured green electricity tariff for its Klang Valley core data center, Iskander Puteri core data center, and KL City data center from the Tenaga Nasional Berhad, a Malaysia based electric company.
• Regarding construction contractors, the Malaysia data center market has several local and global construction contractors providing their services. For instance, DSCO Group carried out project management and M&E consultancy for Telekom Malaysia’s Klang Valley data center.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
  • Kuala Lumpur
  • Johor
  • Cyberjaya
  • Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Malaysia data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV
• Geography
  • Kuala Lumpur
  • Johor
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur, Juniper Networks, Lenovo, NetApp, and NEC.
• Data Center Construction Contractors & Sub-Contractors: Advance Power Engineering, Asima Architects, AVO Technology, B-Barcelona Consulting, CTC-Global, CSF Group, DSCO Group, GCM Technologies, HSS Engineers, ISG, Kienta Engineering Construction, LSK Engineering, MES, M+W Group, Nakano Corporation, NTT FACILITIES, Powerware Systems, S5 Engineering, Shaw Architect, Sunway Construction Group, and Unique Central.
• Support Infrastructure Providers: ABB, Caterpillar, Cummins, Eaton, Fuji Electric, HITEC Power Protection, KOHLER Power, Legrand, Mitsubishi Electric, Narada Power Source, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, Siemens, Socomec, STULZ, Trane, and Vertiv.
• Data Center Investors: Bridge Data Centres, Edge Centres, Keppel Data Centres, NTT Global Data Centers, Open DC, TM One, and VADS.
• New Entrants: AirTrunk, Equinix, Infinaxis Data Centre, GDS Services, PP Telecommunication, Regal Orion, Vantage Data Centers, Yondr, and YTL Data Center.