Malaysia Data Center Market - Investment Analysis & Growth Opportunities 2025-2030

MARKET OUTLOOK

The Malaysia data center market will witness investments of USD 13.57 billion by 2030, growing at a CAGR of 22.35% during the forecast period. Malaysia is attracting global data center investors; this highlights its potential for further growth. For instance, in May 2024, Microsoft announced its plan to invest around USD 2 billion in cloud computing and AI in Malaysia over the next three to four years. Furthermore, the Malaysia data center market is growing due to the spillover demand from Singapore, and we expect that Malaysia is going to surpass the capacity of the Singapore data center market in the next three to four years owing to the significant rise in investments.

Malaysia has for strong infrastructure including a reliable network of submarine cables and high-speed internet connectivity. It has around 23 undersea cables that connect India, China, Singapore, the UAE, the UK, Vietnam, Greece, Egypt, and Saudi Arabia. The country is set to host around six upcoming submarine cables such as Asia Link Cable (ALC), India Asia Xpress (IAX), MIST, and SEA-H2X. Moreover, the country has favorable conditions, such as solar and hydropower, for renewable energy generation, with data center providers focusing more on sustainability. Strategically located in Southeast Asia, Malaysia is close to major markets such as Australia, China, India, and Singapore. Johor is the top choice for data center investors in Malaysia due to the relatively low cost of land, labor, and electricity, making it an attractive location for investments.

Malaysia’s data center market accounts for the presence of several local and global data center operators such as Bridge Data Centres, NTT DATA, Princeton Digital Group, Keppel Data Centres, VADS Berhad (VADS), and Vantage Data Centers. Furthermore, in 2024, the Malaysia data center market witnessed new entrants such as Amazon Web Services (AWS), EdgeConneX, Epoch Digital, Google, Infinaxis Data Centre Holdings, Microsoft, and ST Telemedia Global Data Centres; this will further increase competitiveness in the future along with subsequently increasing revenue generation for contractors and infrastructure vendors. Also, in January 2025, STACK Infrastructure announced its entry into Malaysia’s data center market with a data center campus construction plan with a power capacity of around 216 MW.

KEY HIGHLIGHTS

1. M&As, JVs, and partnerships are among the major activities through which operators expand their portfolios and presence in the Malaysia data center market. In October 2024, Bridge Data Centres, through a joint venture with Mah Sing, planned to develop new data centers outside Kuala Lumpur.
2. Under the Malaysia Digital Economy Blueprint (MyDIGITAL) strategy, the government has set targets for attracting around USD 15 billion for the digitalization of the country. The government has earmarked cloud services under its MyDigital Initiative, intending to increase the number of local data centers to offer cloud computing services.
3. In October 2024, the Malaysian government approved the Data Centre Planning Guidelines (GPP), created by the Ministry of Housing and Local Government through PLANMalaysia, taking a significant step toward standardizing data center development in the country.
4. In the coming years, the share of retail colocation will go down as the majority of the data centers opening in the market are wholesale. Companies such as Equinix and Irix who are building retail data centers are keeping the retail colocation afloat.
5. AI-ready data center constructions in the market have started increasing with ample growth in AI workloads. In August 2024, Vantage Data Centers announced that the company has started constructing KUL2, its second campus in Cyberjaya, Malaysia; this AI-ready campus will offer a power capacity of around 256 MW.
6. With the rise in AI workloads and growing rack power density, liquid cooling solutions are becoming imminent for data center operators. For instance, AirTrunk announced the installation of liquid cooling in the first phase of its JHB1 campus in Malaysia, achieving significant energy savings.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size is available in the investment, area, power capacity, and colocation market revenue.
2. An assessment of the data center investment in Malaysia by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Malaysia data center market landscape, an in-depth industry analysis, and insightful predictions about the Malaysia data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in Malaysia
6. Facilities Covered (Existing): 40
7. Facilities Identified (Upcoming): 39
8. Coverage: 5+ States
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in Malaysia
12. Colocation Market Revenue & Forecast (2021-2030)
13. Retail & Wholesale Colocation Pricing
14. The Malaysia data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
15. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the market.
16. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
17. A transparent research methodology and analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

1. Some of the key colocation data center investors in the Malaysia data center market include AirTrunk, AIMS Data Centre, Bridge Data Centres, Equinix, GDS Services, Keppel Data Centres, NTT DATA, Telekom Malaysia, Vantage Data Centers, and others.
2. The rising demand and significant growth opportunities have led to a huge number of new entrants investing in the Malaysia data center market. Some of these new entrants include STACK Infrastructure, Epoch Digital, EdgeConneX, Edgenex Data Centres by DAMAC and others. The rise in new entrants will increase competitiveness in revenue generation in the market in the coming years.
3. The Malaysia data center market has seen a strong presence from global support infrastructure vendors such as ABB, Caterpillar, Cummins, Eaton, Fuji Electric, Legrand, Mitsubishi Electric, Rittal, Rolls-Royce, Schneider Electric, and others. This has resulted in heightened competitiveness in the infrastructure offerings and solutions available in the market.
4. The Malaysia data center market has several local and global construction contractors operating in the market including AEON SERVICES, Advance Power Engineering, China Construction Industrial & Energy Engineering Group, DSCO Group, Gamuda, MN Holdings, NTT FACILITIES, Powerware Systems, S5 Engineering, Shaw Architect, Meg Consult, Nakano Construction, OWH Consulting, and PMX Malaysia and others that have been offering their services in the market. For instance, In August 2024, Asima Architects was selected by Amazon Web Services (AWS) for the development of its first data center in Cyberjaya.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the Region (Area and Power Capacity)
2. Selangor
3. Johor
4. List of Upcoming Facilities in the Region (Area and Power Capacity)
5. Selangor
6. Johor

REPORT COVERAGE:

This report analyses the Malaysia data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Servers
3. Storage Systems
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC & CRAH Units
17. Chiller Units
18. Cooling Towers, Condensers & Dry Coolers
19. Economizers & Evaporative Coolers
20. Other Cooling Units
21. General Construction
22. Core & Shell Development
23. Installation & Commissioning Services
24. Engineering & Building Design
25. Fire Detection & Suppression Systems
26. Physical Security
27. Data Center Infrastructure Management (DCIM)
28. Tier Standard
29. Tier I & Tier II
30. Tier III
31. Tier IV
32. Geography
33. Selangor
34. Johor

VENDOR LANDSCAPE

1. IT Infrastructure Providers: Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur, Lenovo and NetApp.
2. Data Center Construction Contractors & Sub-Contractors: Advance Power Engineering, Asima Architects, AVO Technology, B-Global Tech, CSF Advisers, CTC-Global, Cyclect Group, DSCO Group, Gamuda, GCM Technologies, HSS Engineers, ISG, Kienta Engineering Construction, LSK Engineering, MES Group, Exyte (M+W Group), MN Holdings, Nakano, NTT FACILITIES, Powerware Systems, S5 Engineering, Shaw Architect, Sunway Construction Group, Unique Central, DCD Technology, Linesight, INHERIT TECHNOLOGY ENGINEERING, China State Construction Engineering Corporation (CSCEC), Critical Holdings Berhad, IJM Corporation Berhad, Binastra Corporation, AEON SERVICES, Arcadis, Arup,China Construction Industrial & Energy Engineering Group, Greatians Consulting, Jurutera JRK, Meg Consult, Nakano Construction, OWH Consulting, Regional Development Consortium Architects (RDC), Turner & Townsend, PKT Quantity Surveyors and PMX Malaysia.
3. Support Infrastructure Providers: ABB, Caterpillar, Cummins, Eaton, Fuji Electric, HITEC Power Protection, Rehlko, Legrand, Mitsubishi Electric, Narada Power Source, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, Siemens, Socomec, STULZ, Trane, Vertiv, EKG M & E, Systemair, and Aggreko
4. Data Center Investors: AirTrunk, AIMS Data Centre, Bridge Data Centres, Edge Centres, Equinix, GDS Services, Keppel Data Centres, NTT DATA, Open DC, Princeton Digital Group, Telekom Malaysia, Vantage Data Centers, and YTL Data Center
5. New Entrants: Amazon Web Services, BRIGHT RAY, Edgnex Data Centres by DAMAC, EdgeConneX, Epoch Digital, FutureData, Google, i-Berhad, Infinaxis Data Centre Holdings, Microsoft, NEXTDC, Regal Orion, Singtel, ST Telemedia Global Data Centres, STACK Infrastructure, and Yondr.

TARGET AUDIENCE

1. Real Estate Investment Trusts
2. Construction Contractors
3. Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate and Government Agencies