The Malaysia Data Center Market Report is Segmented by Data Center Size (Large, Massive, Medium, Mega, and Small), Tier Type (Tier 1 and 2, Tier 3, and Tier 4), Data Center Type (Hyperscale/Self-built, Enterprise/Edge, and Colocation), End User (BFSI, IT and ITES, E-Commerce, Government, and More), and Hotspot (Kuala Lumpur, Cyberjaya, and More). The Market Forecasts are Provided in Terms of IT Load Capacity (MW).

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Malaysia Data Center Market Size 2025-2029

The Malaysia data center market size is forecast to increase by USD 6.24 billion at a CAGR of 22.7% between 2024 and 2029.

The market is experiencing significant growth, driven by key factors such as the increasing demand for data center expansion and planning by hyperscalers. Another trend shaping the market is the shift toward large facilities to accommodate the growing need for data processing and storage. However, this growth comes with challenges, including the high capital investment required to build and maintain these facilities. Effective demand planning and strategic expansion are essential for businesses to remain competitive In the market. Additionally, advancements in technology, such as edge computing and the Internet of Things (IoT), are creating new opportunities for data center providers. Overall, the market is poised for continued growth, with businesses and organizations increasingly relying on data-driven insights to fuel innovation and growth.

What will be the Size of the market During the Forecast Period?

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The market is experiencing significant growth due to the increasing digitalization penetration and the rising adoption of cloud computing. According to industry reports, the global market size is anticipated to reach substantial revenues by 2026, growing at a CAGR of over 10% during the forecast period. Data center operators continue to seek strategic locations, such as industrial estates, free zones, connectivity hubs in port cities, and proximity to submarine cables, to establish their facilities. Renewable energy generation is also becoming a priority for operators to reduce their carbon footprint and lower operational costs.
Cloud service providers are investing heavily in IT infrastructure, including servers, storage systems, network infrastructure, electrical infrastructure, UPS systems, generators, switches and switchgears, mechanical infrastructure, cooling systems, and AI and big data technologies. Colocation, managed hosting, and cloud services are popular offerings In the market, with consultants playing a crucial role in guiding organizations In their digital transformation journeys. Racks, chiller units, and other essential components are in high demand as data center construction and expansion continue. IoT and other emerging technologies are also driving the need for advanced solutions. Overall, the market is a dynamic and evolving landscape, with continued innovation and growth expected In the coming years.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

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

By Type Insights

The data center servers segment is estimated to witness significant growth during the forecast period.

Data centers serve as critical infrastructure for processing, storing, and running applications, utilizing servers, storage systems, network infrastructure, electrical infrastructure, UPS systems, generators, switches and switchgears, mechanical infrastructure, cooling systems, racks, chiller units, and general construction. Enterprises and operators are transitioning from capital expenditure (CAPEX) to operational expenditure (OPEX) models to optimize server infrastructure utilization and reduce costs. This shift drives demand for consolidation, virtualization, and containerization of computing needs. Servers in data centers include rack servers, blade servers, tower servers, microservers, and Open Compute Project (OCP) servers. The digitalization penetration and cloud computing trends have increased the adoption of AI, big data, IoT, 5G connectivity, and telecom operators, necessitating low latency and edge data centers.

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Market Dynamics

Our market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Malaysia Data Center Market?

Demand planning and expansion by hyperscalers is the key driver of the market.

The market is experiencing growth due to rising investments in new data center construction and capacity expansions by hyperscalers. Hyperscalers, known for th

Malaysia Data Center Power Market is Segmented by Component (Electrical Solutions, Services), Data Center Type (Hyperscaler/Cloud Service Providers, Colocation Providers, and More), Data Center Size (Small Size Data Centers, Medium Size Data Centers, Large Size Data Centers and More), Tier Type (Tier I and II, Tier III, Tier IV). The Market Forecasts are Provided in Terms of Value (USD)

The Malaysia Hyperscale Data Center Market is Segmented by Data Center Type (Hyperscale Self-Build, Hyperscale Colocation), Component (IT Infrastructure, Electrical Infrastructure, and More), Tier Standard (Tier III, Tier IV), End-User Industry (Cloud and IT Services, Telecom, and More), Data Center Size (Large ≤25 MW, and More). The Market Size and Forecasts are Provided in Terms of Value (USD).

The Study of Data Center Water Consumption in Malaysia is Segmented by Source of Water Procurement (Potable Water, Non-Potable Water, Other Alternate Sources), by Data Center Type (Enterprise, Colocation, Cloud Service Providers), and by Data Center Size (Mega, Massive, Large, Medium, Small). The Market Sizes and Forecasts are Provided in Terms of Volume (Billion Liters).

Malaysia Data Center Power Market size was valued at USD 317.80 Million in 2024 and is projected to reach USD 821.23 Billion by 2032, growing at a CAGR of 12.60% from 2026 to 2032.

Malaysia Data Center Power Market Drivers

Increasing Adoption of Cloud Computing and Digitalization: The rising trend of businesses and government agencies embracing cloud services and digital transformation initiatives is generating a significant demand for data center facilities and, consequently, the power infrastructure to support them. Malaysia's high social media and smartphone penetration rates further contribute to this demand. Government Support and Initiatives: The Malaysian government is actively promoting the growth of the digital economy through initiatives like the Malaysia Digital Economy Blueprint (MyDIGITAL) and the approval of Data Centre Planning Guidelines (GPP). These efforts aim to attract investments and standardize data center development. Strategic Location and Connectivity: Malaysia's strategic location in Southeast Asia, close to major markets, coupled with its well-established telecommunications infrastructure, robust network of submarine cables, and increasing high-speed internet penetration (including 5G rollout), makes it an attractive hub for data center operations. Favorable Cost Structure: Compared to some other regional hubs like Singapore, Malaysia offers a more competitive cost structure in terms of land, labor, and electricity, making it a desirable location for data center investments and enhancing their operational efficiency.

The Malaysia data center colocation market size was valued at USD 730 million in 2024 and is expected to reach USD 3.52 billion by 2030, growing at a CAGR of 29.98% during the forecast period.

Malaysia's Data Center Rack Market is Segmented by Rack Size (Quarter Rack, Half Rack, Full Rack) and by End User (IT & Telecommunication, BFSI, Government, and Media & Entertainment). The Market Sizes and Forecasts are Provided in Terms of Volume (units) for all the Above Segments.

The Malaysian data center market is experiencing robust growth, driven by the increasing adoption of cloud computing, digital transformation initiatives across various sectors, and the burgeoning e-commerce landscape. Cyberjaya and Kuala Lumpur, as key technology hubs, are leading the charge, attracting significant investments in large and hyperscale data centers. The market is segmented by data center size (small, medium, mega, massive), tier type (Tier 1-4), absorption rates (utilized/non-utilized), colocation type (hyperscale, retail, wholesale), and end-user industries (BFSI, cloud, e-commerce, government, manufacturing, media & entertainment, IT, and others). This diverse segmentation reflects the evolving needs of businesses across Malaysia. The substantial growth in e-commerce and the government's initiatives to foster digitalization are major catalysts, pushing demand for high-capacity, reliable, and secure data center infrastructure. While the market faces challenges such as potential power supply constraints and the need for skilled workforce development, the overall outlook remains positive, with a projected continued expansion over the next decade. Competition is fierce, with both local and international players vying for market share. Established players like TM One and YTL Data Center are leveraging their existing infrastructure, while newer entrants are focusing on niche segments and emerging technologies. The forecast period (2025-2033) anticipates consistent growth fueled by several factors. The increasing penetration of 5G technology will drive demand for edge data centers, while the government’s focus on building digital infrastructure through initiatives like the Malaysia Digital Economy Blueprint will continue to attract investment. The rising adoption of artificial intelligence (AI), machine learning (ML), and big data analytics across sectors necessitates substantial data storage and processing capabilities, further propelling market expansion. However, the market will need to adapt to address potential challenges like ensuring data sovereignty and compliance with increasingly stringent data privacy regulations. Maintaining a skilled workforce and mitigating potential power disruptions will be crucial for sustained growth in the coming years. Recent developments include: October 2022: Zenlayer entered into a joint venture with Megaport to strengthen and expand its presence globally. The partnership is aimed at providing enhanced services such as improved network connectivity, real time provisioning, and on demand private connectivity for its clients around the globe.September 2022: NTT Ltd announced the commencement of the construction of its sixth data centre in Cyberjaya. NTT plans to initially invest over USD 50 million in the sixth data centre, which is also known as Cyberjaya 6 (CBJ6). Further, CBJ6 and CBJ5 will have a total facility load of 22MW, spanning a combined 200,000 sq ft.April 2022: Malaysian data center firm Open DC aanounced that they are partnering with the Malaysian government to build a data center in the north of the country. The company aim to improve the Internet development at the northern border, to emulate the existing neighboring Internet Exchange (IX) via the Malaysia-Singapore border.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The size of the Malaysia Data Center Construction Market market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 16.64% during the forecast period. Recent developments include: October 2022: Zenlayer entered into a joint venture with Megaport to strengthen and expand its presence globally. The partnership is aimed at providing enhanced services such as improved network connectivity, real time provisioning, and on demand private connectivity for its clients around the globe., September 2022: NTT Ltd announced the commencement of the construction of its sixth data centre in Cyberjaya. NTT plans to initially invest over USD 50 million in the sixth data centre, which is also known as Cyberjaya 6 (CBJ6). Further, CBJ6 and CBJ5 will have a total facility load of 22 MW, spanning a combined space of 200,000 sq.ft. capacity.. Key drivers for this market are: Rising Partnerhsips, Growing Industry 4.0 Technologies Are Factors To Boost The Data Centers In The Country, Established 'Mobile-First' Landscape Since the Recent Past. Potential restraints include: Shortage of Skilled Professionals Presenting a Challenge for Several Contractors. Notable trends are: IT and Telcom Segment is Expected to Gain Significant Market Share.

The size of the Malaysia Data Center Storage market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 12.38% during the forecast period. Recent developments include: March 2023: Hewlett Packard Enterprise (HPE) completed the acquisition of OpsRamp, an IT operations management company. OpsRamp's hybrid digital operations management solution, seamlessly integrated with the HPE GreenLake edge-to-cloud platform and supported by HPE Services, effectively reduces the complexities associated with operating multivendor and multi-cloud IT environments in the public cloud (colocation) and on-premises settings. The collaboration between OpsRamp and HPE GreenLake Edge-to-Cloud Platform establishes a cohesive approach to managing a diverse array of compute, network, storage, and application resources in hybrid and multi-cloud IT environments., June 2023: Huawei introduced its data center data infrastructure architecture, known as F2F2X (Flash-to-Flash-to-Anything). This innovative architecture serves as a robust data foundation specifically designed to assist financial institutions in addressing the challenges posed by new data, new applications, and the need for enhanced resilience. Huawei's F2F2X architecture represents a strategic move towards ensuring a reliable and adaptable data infrastructure for financial organizations in the face of evolving technological demands.. Key drivers for this market are: Expansion of IT Infrastructure to Increase Market Growth, Increased Investments in Hyperscale Data Centers To Increase Market Growth. Potential restraints include: High Initial Investment Cost To Hinder Market Growth. Notable trends are: IT & Telecommunication Segment to Hold Major Share in the Market.

The Southeast Asia data center market is booming, projected to reach $9.78B in 2025, with a 6.8% CAGR. Discover key trends, drivers, and restraints shaping this dynamic market, including regional analysis and insights into leading companies. Explore the opportunities and challenges in Singapore, Malaysia, Thailand, and Indonesia's data center landscape.

The size of the Malaysia Data Center Physical Security market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 18.30% during the forecast period. Key drivers for this market are: Increasing Data Traffic and Need for Secured Connectivity is Promoting the Growth of the Data Center Physical Security Market, Rise in Cyber Threats is Causing the Data Center Physical Security Market to Grow. Potential restraints include: Limited IT Budgets, Availability of Low-Cost Substitutes, and Piracy is Discouraging the Potential Growth of Data Center Physical Security Market. Notable trends are: The Video Surveillance Segment to Hold Significant Share.

Malaysia Data Center Server Market is Segmented by Data Center Tier(Tier 1 and 2, Tier 3, Tier 4), Form Factor(Half-Height Blades, Full-Height Blades and More), Application (Virtualisation and Private Cloud, High-Performance Computing and More), Data Center Type(Hyperscalers Provider and More), End User Industry(BFSI and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Malaysia Data Center Market By Size, Share, Trends, Growth, Forecast 2028, Segmented By Solution, By Type, By End-User, By Region, Competition Forecast and Opportunities

The size of the Malaysia Data Center Server market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 16.60% during the forecast period. Key drivers for this market are: Increase in construction of new data centers, development of internet infrastructure, Increasing adoption of cloud and IoT services. Potential restraints include: Rising CapEx for data center construction. Notable trends are: IT & Telecommunication Segment to Hold Major Share in the Market.

The size of the Malaysia Data Center Networking market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 11.60% during the forecast period. Recent developments include: June 2023: Cisco’s Nexus 9800 Series modular switches expand the Cisco Nexus 9000 Series portfolio with a new chassis architecture to include a combination of several first-generation line cards and fabrics modules, allowing it to scale from 57 Tbps up to 115 Tbps. Line cards that now offer 400 GE or 100 GE ports and higher speeds can be supported by each line card slot on the chassis., March 2023: Arista Networks announced the release of the Arista WAN Routing System, which combines three new networking offerings, including carrier/cloud-neutral internet transit capabilities, enterprise-class routing platforms, and the CloudVision Pathfinder Service to simplify and improve customer-wide area networks. This System delivers the architecture, features, and media to modernize federated and software-defined wide-area networks.. Key drivers for this market are: Increasing Adoption of Cloud-Based Services, Advent of 5G Networks Drives Market Growth. Potential restraints include: Cybersecurity Threats and Ransomware Attacks. Notable trends are: Telecommunication Holds the Major Share..

Technological advancements in the Malaysia Data Center Rack industry are shaping the future market landscape. The report evaluates innovation-driven growth and how emerging technologies are transforming industry practices, offering a comprehensive outlook on future opportunities and market potential.

The Malaysia data center power market is experiencing robust growth, projected to reach $317.80 million in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 12.60% from 2025 to 2033. This expansion is fueled by several key factors. The increasing adoption of cloud computing and digital transformation initiatives across various sectors, including IT and telecommunications, BFSI (Banking, Financial Services, and Insurance), and the government, is driving significant demand for reliable power infrastructure in data centers. Furthermore, the rising need for high availability and redundancy in data center operations, coupled with stringent regulatory compliance requirements, is bolstering investments in advanced power solutions such as UPS systems, generators, and sophisticated power distribution systems. The market is segmented by power infrastructure solutions (including UPS, generators, PDUs, switchgear, and critical power distribution), services, and end-users. Major players like ABB, Schneider Electric, and Vertiv are actively competing in this dynamic market, offering a range of solutions tailored to meet the specific needs of various data center operators. The sustained growth trajectory is expected to continue throughout the forecast period (2025-2033), driven by ongoing digitalization efforts and increasing data center deployments across Malaysia. However, potential restraints include the high initial investment costs associated with advanced power infrastructure and the need for skilled technical expertise in managing and maintaining these systems. Nevertheless, the long-term prospects for the Malaysia data center power market remain positive, with opportunities for growth in areas such as renewable energy integration within data centers and the adoption of smart power management solutions to enhance efficiency and sustainability. The market's expansion will likely be concentrated in major urban centers with high concentrations of businesses and data center facilities. This report provides a comprehensive analysis of the Malaysia Data Center Power Market, covering the period from 2019 to 2033. It offers invaluable insights for businesses involved in power infrastructure, data center operations, and investment strategies within this rapidly evolving sector. The report leverages data from the historical period (2019-2024), utilizing 2025 as the base year and offering detailed forecasts until 2033. Recent developments include: December 2023: Eaton, an intelligent power management company, announced the launch of its new Rack PDU G4 (4th generation) that provides a high security and business continuity data center. It is also combined with C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord., November 2023: ABB Ltd announced the launch of the Protecta Power panel board, designed for industrial, commercial, and institutional buildings. It is integrated with digital monitoring and control technology, enhancing durability and safety.. Key drivers for this market are: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Potential restraints include: High Cost of Installation and Maintenance. Notable trends are: The IT and Telecommunication Segment Holds a Major Share in the Market.

In Malaysia Data Center Cooling Market, offering valuable insights, key market trends, competitive landscape, and future outlook to support strategic decision.