Latest News- Data Center Market in Malaysia: Data center servers is expected to lead the Type segment during 2025-2029

The Data Center Market in Malaysia is being driven by Demand planning and expansion by hyperscalers

The Data Center Market in Malaysia is expected to grow at a CAGR of 22.7% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 6239.2 million. In South-East Asia, particularly in Malaysia, there is a growing trend towards the development of large, multistoried data center facilities. This shift is primarily driven by land scarcity and the escalating costs of land acquisition. Colocation service providers and Cloud Service Providers (CSPs) are planning to construct larger data centers with expanded gross floor areas, surpassing current offerings. Some industry players are even considering the establishment of 150 MW, multistoried data centers in the region. These expansive facilities will house a greater number of storage and computing resources, enabling them to cater to a larger clientele than smaller data centers. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Type
  • Data center servers
  • Data center storage
  • Data center powering and cooling solutions
  • Data center networking solutions
• End-user
  • BFSI
  • Cloud
  • E-commerce
  • Government
  • Others
• Environment
  • Hyperscale
  • Colocation
  • Edge
  • Others
• Variant
  • Tier 3
  • Tier 1 and Tier 2
  • Tier 4
• Geography
  • Malaysia

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Demand planning and expansion by hyperscalers
• Digital transformation initiatives and efforts
• Growing demand among small and medium-sized enterprises (SMEs)

However, the market also witnesses some limitations, which are as follows:

• Need for high capital investment
• Growing concerns over server security
• Server workload optimization

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Market Scope in Data Center Market in Malaysia Research Report

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Research Analysis Overview

The Data Center Market in Malaysia is witnessing significant growth due to the increasing digitalization penetration and adoption of cloud computing. Industrial estates and free zones in port cities are becoming preferred locations for data center operators, owing to their strategic connectivity through submarine cables and proximity to cloud service providers. Renewable energy generation is a key focus area, with IT infrastructure incorporating servers, storage systems, network infrastructure, electrical infrastructure, UPS systems, generators, switches and switchgears, mechanical infrastructure, cooling systems, and AI, big data, and IoT technologies. Colocation, managed hosting, and cloud services are popular offerings, with data center consultants providing expertise in racks, chiller units, and other specialized equipment.

Market Research Overview

The Data Center Market in Malaysia is a significant segment of the global Internet services and infrastructure industry. Key drivers include digitalization penetration and the increasing adoption of cloud computing. Data center operators are increasingly setting up shop in industrial estates and free zones to leverage incentives and strategic locations. Renewable energy generation is also gaining traction as a sustainable solution for powering data centers. Technavio's market analysis calculates the market size based on the combined revenue of companies providing data center services, cloud computing services, and IT security services in Malaysia.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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