Malaysia Data Center Market Size to Reach around $800 Million by 2025 – Arizton

In-depth analysis and data-driven insights on the impact of COVID-19 included in this Malaysia data center market report.

Malaysia data center market size is expected to grow at a CAGR of over 8% during the period 2019−2025.

Key Highlights Offered in the Report:
1. Malaysia data center market to witness around $1 billion of cumulative investments during 2020-2025.
2. Improvements in fiber connectivity and digitalization of enterprise business environment will create lucrative opportunities for data center investors in Malaysia.
3. Over 1 million square feet of data center space will be added to the Malaysia data center data center market between 2019-2025.
4. Malaysia data center colocation market revenue is expected to grow at a CAGR of around 14%, where AIMS Data Centre, Bridge Data Centres, NTT Global Data Centers, and Telekom Malaysia are among the prominent service providers.
5. Over $400 million revenue opportunity for power infrastructure vendors in Malaysia data center between 2019-2025.
6. Johor and Iskandar have potential to become the major hubs for data center development in Malaysia.
7. Regal Orion is the new market entrant, investing $300 million in data center. The facility is opening in phases in 2020-2021.

Key Offerings:
• Market Size & Forecast by Investment | 2019−2025
• Market Size & Forecast by Colocation Revenue | 2019−2025
• Impact of COVID-19 on Data Center Market
• Retail & Wholesale Data Center Colocation Pricing in Malaysia
• List of Data Center Investments in Malaysia
• Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
• Market Segmentation – A detailed analysis by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, and tier standard
• Key Market Participants – List of 10 IT infrastructure providers, 10 construction service providers, 13 support infrastructure providers, and 4 data center investors

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Malaysia Data Center Market – Segmentation

• Increase in data center investments will be a strong driver for server infrastructure adoption in the market. Mission critical and high-performance server systems are likely to dominate with increase in the deployment of big data, artificial intelligence, and IoT technology. The server market is now shifting from old rack- based servers to blade servers. The ODM server market will increase with rise in construction of cloud facilities.
• Mix of gas and diesel generator adoption in Malaysia. The market is dominated with diesel generators, where new facilities likely to deploy a mix of diesel and gas generators in the Malaysian market. VADS Berhad Klang Valley data center facility is supported by diesel generators with 48 hours of onsite fuel storage tanks. Regal Orion Shinsei Malaysia 1 data center facility is designed with gas generators for backup power.
• Data center operators adopt both air and water-based cooling systems. Most of the operators are adopting air-cooled chillers. VADS Berhad Klang Valley data center facility is equipped N+1 redundancy chiller systems and N+2 redundant CRAC systems. Regal Orion is building data center in Malaysia, which will also facilitate operating liquid-immersion cooling solutions in partnership with Green Data Center LLP

Market Segmentation by IT Infrastructure

• Servers
• Storage Systems
• Network Infrastructure

Market Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer, Switches & Switchgears
• Rack PDUs
• Other Electrical Infrastructure

Market Segmentation by Mechanical Infrastructure

• Cooling Systems
• Rack Cabinets
• Other Mechanical Infrastructure

Market Segmentation by General Construction

• Building Development
• Installation & Commissioning Services
• Building Design
• Physical Security
• Data Center Infrastructure Management (DCIM)

Market Segmentation by Tier Standard

• Tier I & Tier II
• Tier III
• Tier IV

Malaysia Data Center Market – Dynamics

Increased adoption of cloud-based services to fuel growth in the Malaysia data center market.
In 2019, 25% enterprises in Malaysia adopted cloud services to support artificial intelligence (AI) applications and edge computing. In Malaysia, Software as a Service (SaaS) dominates the market adoption. The increase in digital transformation initiatives by enterprise verticals, will aid in growth of PaaS and IaaS, entry of providers like Google and AWS with physical presence in the country will be a boost to growth of these services. Malaysia has the physical presence of only Alibaba, one major cloud providers. Microsoft is expected to open its cloud region by 2021 and will be followed by others before 2025. MyGovUC cloud computing-based applications were introduced by the Malaysian government. This cloud initiative platform is used for communication channels, such as e-mail, conference calls, and more.

Key Drivers and Trends fueling Market Growth:
• Thriving Digital Transformations Fueling Data Center Demand
• Big Data Spending to Flourish Data Center Investments
• Smart Cities Leading to Edge Data Center Deployments
• 5G Deployment to Increase in the Country

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Key Market Participants

• IT Infrastructure Providers
o Inspur
o Hewlett Packard Enterprise
o Dell Technologies
o Cisco
o NetApp
o Huawei
o Fujitsu
o NEC Corporation
o IBM
o Lenovo

• Construction Service Providers
o Nakano Corporation
o DSCO Group
o Shaw Architect
o AVO Technology
o B-Barcelona Consulting
o ISG
o NTT Facilities
o CSF Group
o S5 Engineering Sdn Bhd
o Powerware Systems Sdn Bhd

• Support Infrastructure Providers
o ABB
o Caterpillar
o Cummins
o Eaton
o Legrand
o Schneider Electric
o Vertiv
o Rittal
o MTU Onsite Energy
o Mitsubishi Electric
o Hitec-Power Protection
o Fuji Electric
o Global Data Center LLP

• Data Center Investors
o VADS BERHAD (Telekom Malaysia)
o Keppel Data Centres
o Katalyst Data Management
o Regal Orion

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About Arizton Advisory & Intelligence

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