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).

Source: TraceData Research Analysis Future Outlook and Projections for Malaysia Data Center and Cloud Services Market on the Basis of Revenues in USD Million, 2024-2029 The Malaysia data center market is projected to grow steadily by 2029, exhibiting a strongCAGR of 11.2%during the forecast period. This growth is expected to be fueled by digital transformation across industries, government policies supporting the digital economy, andrising demand for cloud servicesand edge computing.

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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 AI Optimised Data Center Market report segments the industry into Data Center Type (CSP Data Centers, Colocation Data Centers, Others (Enterprise and Edge)), By Component (Hardware, Software Technology, Services - (Managed Services, Proffesional Services, etc)), Hardware (Power, Cooling, IT Equipments, Others), and Software Technology (Machine Learning, Deep Learning, Natural Language Processing, Computer Vision).

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 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 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.

Discover the booming Malaysian data center market! This in-depth analysis reveals a $3.01 billion market in 2025, projected to grow at a 20.22% CAGR through 2033. Explore key drivers, trends, and leading companies shaping this dynamic sector. Learn about market segmentation, competitive strategies, and future growth potential.

The Malaysia Data Centers portfolio covers 46 Existing Data Centers and 46 Upcoming Data Centers in the Malaysia Region.

Malaysia Data Center Construction Market Report Segments the Industry Into Infrastructure (By Electrical Infrastructure, by Mechanical Infrastructure, General Construction), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Data Center Type (Colocation, Self-Built Hyperscalers (CSPs) and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD Million) for all the Above Segments.

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 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 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.

As of October 2025, there were 449 data centers in China, the most of any country or territory in the Asia-Pacific region. China had the fourth-highest number of data centers worldwide. Data centers in China As the leading market in public cloud in the Asia-Pacific region and an aspiring global leader in artificial intelligence, China has placed considerable weight on data center infrastructure, which underlies most of the advances in internet technology. The country dominates the global data center market in terms of revenue, trailing only the United States. In addition, China accounted for around 16 percent of the worldwide hyperscale data center capacity in the 4th quarter of 2023. The data center segment revenue in China is expected to have an annual growth rate of around 8.3 percent between 2025 and 2029. The outlook of data centers in the Asia-Pacific region The pandemic has accelerated enterprise digitalization across the Asia-Pacific region, driving a surge in demand for computational power. This trend, coupled with advancements in artificial intelligence and the region's significant population growth, points to a promising future for data centers in the region. For instance, the revenue in the data center market in India was forecast to grow further and is set to reach about 11.85 billion U.S. dollars by 2029. Meanwhile, economic growth and increasing internet penetration rates in Southeast Asian countries have been the primary drivers for data center demand growth in the subregion.

The Malaysia data center power market, valued at $317.80 million in 2025, is projected to experience robust growth, driven by the nation's expanding digital economy and increasing adoption of cloud computing and big data analytics. The Compound Annual Growth Rate (CAGR) of 12.60% from 2025 to 2033 indicates a significant market expansion over the forecast period. Key drivers include government initiatives promoting digital transformation, rising investments in 5G infrastructure, and the growing need for reliable power solutions within data centers to ensure business continuity and minimize downtime. The market is segmented by power infrastructure solutions (UPS systems, generators, power distribution solutions), services (installation, maintenance, and support), and end-users (IT and telecommunication, BFSI, government, media and entertainment). Leading players like ABB, Caterpillar, Cummins, Eaton, Schneider Electric, and Vertiv are actively competing in this market, offering a range of solutions to meet diverse power requirements. The robust growth is expected to be sustained by ongoing investments in data center infrastructure, increasing energy demands from high-performance computing, and the rising adoption of advanced power management technologies. Growth within the Malaysian data center power market will be fueled by several factors. Firstly, the increasing reliance on cloud services and the subsequent rise in data center construction will demand substantial power infrastructure. Secondly, the government's continued commitment to digitalization will further stimulate demand for reliable and efficient power solutions. Furthermore, the growth of sectors like BFSI (Banking, Financial Services, and Insurance) and media and entertainment significantly contributes to the market's expansion, requiring sophisticated power management systems. While potential restraints could include fluctuating energy prices and regulatory changes, the overall positive outlook for the Malaysian economy and the increasing digitalization initiatives are expected to outweigh these challenges, ensuring strong market growth throughout the forecast period. 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: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Notable trends are: The IT and Telecommunication Segment Holds a Major Share in the Market.

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

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.

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

The Malaysia Data Center Physical Security Market is experiencing robust growth, projected to reach a market size of 31.34 million USD in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 18.30% from 2019 to 2033. This expansion is driven by several key factors. Firstly, the increasing adoption of cloud computing and the subsequent surge in data center construction necessitate advanced security measures to protect sensitive information and critical infrastructure. Secondly, stringent government regulations regarding data privacy and security are compelling organizations to invest heavily in robust physical security solutions. This includes integrated systems like video surveillance, access control, and perimeter security, which are further enhanced by professional services such as consulting and system integration. The IT and telecommunication sector is a major driver, followed by the BFSI (Banking, Financial Services, and Insurance) and government sectors, each contributing significantly to market demand. The market segmentation reveals a strong preference for video surveillance and access control solutions, with consulting services leading the service-type segment. While the market faces potential restraints from initial high investment costs and the need for skilled personnel for system management, the overall growth trajectory remains positive, fueled by ongoing digital transformation and heightened security awareness. The forecast period (2025-2033) anticipates continued expansion, primarily fueled by the increasing number of data centers in Malaysia alongside the ongoing adoption of sophisticated security technologies. Key players like Axis Communications, ABB, Bosch, and Honeywell are actively shaping market dynamics through innovation and strategic partnerships. The market's future hinges on continuous technological advancements, such as AI-powered video analytics and biometrics integration, alongside the increasing focus on cybersecurity within data center operations. This competitive landscape will encourage further market consolidation and specialization, benefiting businesses seeking comprehensive and integrated physical security solutions. Recent developments include: February 2024: In the latest release of its operating system, AXIS OS, Axis Communications AB announced that more than 200 network devices, including cameras, intercoms, and 11.8 audio speakers, were supported by the IEEE MAC 802.1sec security standard. Demonstrating the company's continued commitment to device and data security, Axis became the first manufacturer of physical safety products supporting the MACsec Media Access Control Security., October 2023: Zwipe partnered with Schneider Electric's Security Solutions Group. Schneider Electric plans to introduce the Zwipe Access fingerprint-scanning smart card to its clientele. This card will be integrated with Schneider Electric's Continuum and Security Expert platforms, serving a client base from sectors such as airports, transportation, healthcare, data centers, and more.. 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: 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. Notable trends are: The Video Surveillance Segment to Hold Significant Share.