Malaysia Data Center Market Report, Market Major Players, Market Statistics, Market Trends, Market Challenges, Market Outlook to 2029 - TraceData Research

Malaysia Will Be Home to More Than 200 Mw Of Data Center Capacity By 2029

Malaysia has become a connectivity hub of Southeast Asia, with nearly 23 undersea cable systems linking the nation to global networks. The Malaysia data center market is also witnessing new trends every day, making it one of the fastest-growing in the Asia Pacific region, with expanding digital consumers in the region while the demand for IoT, cloud computing, and edge computing is expected to be on the rise shortly. The market is also driving increasing investments with Johor emerging as a data center hotspot with around USD 3.8 billion investment in 2024. Furthermore, factors such as government policies focusing on renewable energy accelerate the market with a goal of establishing 70% renewable energy capacity by 2050. Malaysia is ranked among top 15 countries in 2024 for growth potential in its data center market. This is supported by the growing internet penetration which exceed 95% as of 2024 and increasing adoption of cloud computing in the businesses.

Malaysia Data Center Market Recent Developments
• Growing Demand for Cloud Computing: The adoption of cloud computing among businesses is driving the data center market in Malaysia. In 2024, cloud adoption among businesses in Malaysia increased by 40%, due to growing e-commerce, hybrid workplace model. Industry is adopting cloud computing to improve operational efficiency and data security. The key sector contributing to this trend is banking, financial services, and insurance (BFSI), with approximately 70% of these institutions shifting their operations to cloud-based platforms.

• Rising Technology Integration: IoT is also emerging as a major driver for data center market. IoT comprises of network of interconnected devices, home applications, and vehicles equipped with software, technologies, and sensors that allows data exchange. Industries like healthcare and manufacturing are increasingly adopting IoT and edge computing for their smooth operations. Furthermore, approximately 50% of data generated in 2025 will require processing, highlighting the importance of IoT and edge computing investments.

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• Sustainability and Greater Connectivity: Malaysia has cost-effective environment for data center options, with availability of skilled labour, lower cost of electricity, and affordable lands. The country is prioritizing sustainability to differentiate the data center market from other countries. Operators are investing in sustainable practices and align their operations with ESG (Environmental, Social, and Governance) goals. Additionally, country has greater connectivity through nearly 23 subsea cables, with projects like India Asia Xpress (IAX) and Asia Link Cable (ALC) underway are providing smooth data transfer to different regions

Malaysia Data Center Market Players
The Malaysia data center market is moderately consolidated, with local and international players expanding their operations to the market. operators are partnering with regional and international technology and telecom firms to expand their data center services and connectivity. Merger of Malaysian telcos Celcom and DiGi created country's largest carriers of more than 20 million subscribers in 2024. The key players of the market include Bridge Data Center, NTT Ltd, and FutureData. In 2024, FutureData planned for new data center park in Kota Samarahan which will consist of a purpose-built facility and IT capacity of 17MW. This data center has investment of $130 million and will be operational by 20226. To secure the position in the market, Malaysian players must differentiate themselves by providing innovative and industry specific solutions.

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Malaysia Data Center Market Future Outlook
The Malaysia data center market is expected to grow substantially through 2029, with operators increasingly investing in energy-efficient technologies. By 2029, data center market in Malaysia is expected to host approximately 200 MW of data center capacity which is more than the double of capacity as of 2024. The market is likely to face the challenge of power shortage, although government is taking initiatives by investing in electricity infrastructure and encouraging high-tech firms to support the market. Integration of cloud computing and IoT technologies will further support the market, with nearly 70% of data centers by 2029 adopting AI-powered energy management systems. As operators expand their offering and satisfy the growing demand for data center services, the market is expected to experience increasing investments for new data center facilities.

Consultant at TraceData Research In their latest publication "Malaysia Data Center Market Outlook to 2029: By Type of Infrastructure (IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Others), By Tier Type (Tier 1 and 2, Tier 3, Tier 4), and By Industry (BFSI, Telecom & IT, Media & Entertainment, E-Commerce, Government & Healthcare, Others)" believe that businesses should focus on investing in AI-powered energy optimizations and build advanced subsea cable infrastructure near key connectivity nodes to ensure scalability and competitiveness.

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Malaysia Data Center Market Segmentation: -
• By Market Structure:
o Colocation Data Centers
 Retail Co-Location
 Wholesale Co-Location
o Managed Service Providers

• By Cloud Services:
o Public Cloud
o Private Cloud
o Hybrid Cloud

• By Data Center Infrastructure:
o IT Infrastructure (Servers, Storage, Networking)
o Power Management
o Cooling Solutions
o Security Solutions

• By End-User Industry:
o IT & Telecom
o BFSI
o Government
o Healthcare
o Retail
• By Location
o Kuala Lumpur
o Petaling Jaya
o Klang
o Johor
o Others

Key Players Mentioned in the Report:
• AIMS Data Centre
• TM ONE (Telekom Malaysia)
• NTT Ltd. (formerly Netmagic)
• VADS Berhad (Telekom Malaysia)
• Bridge Data Centres
• TIME dotCom
• Alibaba Cloud Malaysia
• Amazon Web Services (AWS)
• Microsoft Azure Malaysia
• Google Cloud Malaysia

Key Target Audience:
• Data Center Operators
• Cloud Service Providers
• IT Infrastructure Companies
• Regulatory Bodies
• Research and Development Institutions

Time Period:
• Historical Period: 2018-2023
• Base Year: 2024
• Forecast Period: 2024-2029

FAQ's
01 What is the potential for the Malaysia Data Center Market?
The Malaysia data center market is expected to experience substantial growth, reaching a valuation of MYR 9.6 billion by 2029. This growth is driven by factors such as the increasing adoption of cloud services, the digitalization of businesses, and government initiatives aimed at promoting the digital economy. The market's potential is further enhanced by the growing demand for edge computing and sustainable data center infrastructure.

02 Who are the Key Players in the Malaysia Data Center Market?
The Malaysia Data Center Market features several key players, including Keppel Data Centres, Bridge Data Centres, and AIMS Data Centre. These companies dominate the market due to their extensive infrastructure, strong market presence, and comprehensive service offerings. Other notable players include TM One and VADS, which also contribute significantly to the data center landscape.

03 What are the Growth Drivers for the Malaysia Data Center Market?
The primary growth drivers include the rapid adoption of cloud services, digital transformation across various industries, and increasing demand for secure and compliant data storage solutions. Additionally, government initiatives such as the MyDIGITAL blueprint, along with incentives for green and energy-efficient data centers, have created a favorable environment for market growth.

04 What are the Challenges in the Malaysia Data Center Market?
The Malaysia Data Center Market faces several challenges, including high operational costs, particularly related to energy consumption. Regulatory compliance with data privacy and localization laws also imposes significant costs, especially for smaller players. Furthermore, the shortage of skilled professionals in data center management and cybersecurity is a critical challenge, limiting the scalability of data center operations.

Explore Our Other Data Center Related Report: -
India Data Center and Cloud Services Market @ https://www.tracedataresearch.com/industry-report/india-data-center-and-cloud-services-market

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