Malaysia data center market to witness around $1 billion of cumulative investments during 2020-2025.
Improvements in fiber connectivity and digitalization of enterprise business environment will create lucrative opportunities for data center investors in Malaysia.
Over 1 million square feet of data center space will be added to the Malaysia data center data center market between 2019-2025.
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.
Over $400 million revenue opportunity for power infrastructure vendors in Malaysia data center between 2019-2025.
Johor and Iskandar have potential to become the major hubs for data center development in Malaysia.
Regal Orion is the new market entrant, investing $300 million in data center. The facility is opening in phases in 2020-2021.
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
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
Market Segmentation by Electrical Infrastructure
Transfer, Switches & Switchgears
Other Electrical Infrastructure
Market Segmentation by Mechanical Infrastructure
Other Mechanical Infrastructure
Market Segmentation by General Construction
Installation & Commissioning Services
Data Center Infrastructure Management (DCIM)
Market Segmentation by Tier Standard
Tier I & Tier II
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
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