Malaysia Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

INDUSTRY OUTLOOK

The Malaysia data center market size will witness investments of USD 3.97 billion by 2029, growing at a CAGR of 13.92% during the forecast period. Singapore’s space and land constraints fuel Malaysia's rise as a data center powerhouse in Southeast Asia. Also, Malaysia is quickly becoming Southeast Asia's go-to destination for data center development. Moreover, the Malaysian government actively supports the technology sector by forming various entities, such as Cyberview Sdn Bhd and Malaysia Digital Economy Corporation (MDEC), which support and encourage data center investments.

The Malaysia data center market growth is driven by the region's abundance of affordable land and excellent fiber connectivity, making it an ideal location for large-scale data center facilities. Cyberjaya and Johor are key areas that attract data centers and cloud companies. For instance, Johor is experiencing a boom. Its close proximity to Singapore, a major data center hub struggling with capacity limitations, makes it a natural choice for data center investors looking to address the growing demand for data storage in the region.

Over 2 GW of data center power capacity is either planned or under construction by several colocation operators in the Malaysia data center market. Also, Malaysia is a compelling alternative to its space-constrained neighbor, Singapore. Furthermore, introducing renewable energy initiatives such as the Corporate Green Power Programme (CGPP) will allow data center investors and operators to invest heavily in the country to power its data center facilities with green energy. 

KEY HIGHLIGHTS

• The Malaysia data center market has about 34 operational colocation data centers. Most colocation data centers are being developed according to Tier III standards. For instance, NTT DATA’s Cyberjaya is designed and constructed per Tier III standards and certified by the Uptime Institute.
• Malaysia is among the top expensive markets globally for developing data centers. Malaysia's data center construction cost in 2023 stood at about $8.5-$10 million per MW, making it the costliest market in the APAC region after Singapore and Jakarta.
• Some leading colocation operators in the Malaysia data center industry include Bridge Data Centres, NTT DATA, Keppel Data Centres, Vantage Data Centers, VADS, and GDS Services. Some of the new entrants in the market include AirTrunk, Equinix, EdgeConneX, Princeton Digital Group, NEXTDC, ST Telemedia Global Data Centres, and others.
• Several factors are driving industrial development in Kuala Lumpur. For instance, the administration has established the Kuala Lumpur Smart City Master Plan 2020-2025 to support innovations and the sustainable development of the city’s industrial infrastructure, with targets such as smart digital infrastructure and smart economy.
• The governments of Malaysia and Singapore signed an MoU in January 2024 for jointly developing a Special Economic Zone (SEZ) in the Malaysian state of Johor. This will help facilitate better cross-border movement of people and goods, increase the adoption efforts for renewable energy, and make business regulations more effective.
• The upcoming Sedenak Tech Park in Johor offers various advantages, such as using renewable energy for its power needs, the low risk of natural disasters, large land availability, highly skilled talent, and government support. This will further bolster data center developments in the Malaysia data center market.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available regarding 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 cities in the country.
• A detailed study of the existing Malaysia data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Malaysia
  • Facilities Covered (Existing): 34
  • Facilities Identified (Upcoming): 33
  • Coverage: 9 Locations
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Malaysia
  • Colocation Market Revenue & Forecast (2023-2029)
  • Wholesale vs. Retail Colocation Revenue (2023-2029)
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
• The Malaysia data center 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

• Some of the key colocation investors in the Malaysia data center market in 2023 are Bride Data Centers, Keppel Data Centres, NTT DATA, Vantage Data Centers, and Open DC.
• Malaysia’s cloud market is set to expand, with the three hyperscale tech giants (Amazon Web Services, Google, and Microsoft) planning to launch their cloud regions in Kuala Lumpur. Each cloud region will account for three availability zones.
• Malaysia is witnessing investments from colocation and hyperscale operators developing their data center facilities. For instance, Microsoft is involved in developing its first self-built data center region in Greater Kuala Lumpur, which is likely to be online in the next 1-2 years.
• Telecom operators such as Celcom Axiata, DiGi Telecommunications, Maxis, and U Mobile are the major telecom operators that have either deployed 5G technology in some cities on a trial basis or are launching commercial 5G services nationwide.
• AirTrunk, EdgeConneX, NEXTDC, Equinix, Princeton Digital Group, Singtel, STT Telemedia Global Data Centres, and others are prominent new market entrants in Malaysia data center.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Selangor (Kuala Lumpur & Cyberjaya)
  • Johor (Johor Bahru)
  • Other States
• List of Upcoming Facilities in the Region (Area and Power Capacity)
  • Selangor (Kuala Lumpur & Cyberjaya)
  • Johor (Johor Bahru)
  • Other States

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
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC and CRAH
  • Chillers
  • Cooling Tower and Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Building & Engineering Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV 
• Geography
  • Selangor
  • Johor
  • Other States

VENDOR LANDSCAPE

• IT Infrastructure Providers: Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur, Lenovo, and NetApp.
• Data Center Construction Contractors & Sub-Contractors: Advance Power Engineering, Asima Architects, AVO Technology, B-Global Tech, CTC-Global, CSF Group, Cyclect Group, DSCO Group, Gamuda, GCM Technologies, HSS Engineers, ISG, Kienta Engineering Construction, LSK Engineering, MES Group, M+W Group (Exyte), MN Holdings, Nakano, 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, GDS Services, IRIX (PP TELECOMMUNICATION), Keppel Data Centres, NTT DATA, Open DC, TM One, Vantage Data Centers and YTL Data Center Holdings.
• New Entrants: AirTrunk, Amazon Web Services (AWS), EdgeConneX, Equinix, FutureData (Cyclect Group + TSG Group), Google, i-Berhad, Infinaxis Data Centre Holdings, MN Holdings + Shanghai DC-Science, Microsoft, NEXTDC, Princeton Digital Group, Regal Orion, Singtel, ST Telemedia Global Data Centres and Yondr.