Malaysia Data Center Cooling Market Market Size (2024 - 2029)

The Malaysia data center cooling market is experiencing significant growth, driven by the need to maintain optimal temperatures for IT equipment amidst the country's relatively stable climate. The market's expansion is further supported by innovative procurement strategies that address weather-related uncertainties. As the demand for data center capacity increases, with projections for substantial growth in IT load capacity and rack installations, the market size is expected to expand accordingly. The development of infrastructure, such as submarine cable systems, also contributes to the market's growth trajectory.

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Market Size of Malaysia Data Center Cooling Industry

Malaysia Data Center Cooling Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 11.10 %
Market Concentration High

Major Players

Malaysia Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Malaysia Data Center Cooling Market Analysis

The Malaysia Data Center Cooling Market is expected to register a CAGR of 11.10% during the forecast period.

The Malaysia data center cooling market reached a value of USD 307.2 million in the previous year, and it is further projected to register a CAGR of 11.1% during the forecast period.

  • The most recent recommendation for most classes of information technology (IT) equipment is a temperature between 18 and 27 degrees Celsius. Malaysia's mean annual temperature is 25.4°C. There is relatively little seasonal variability in average monthly temperature, ranging one degree Celsius between a minimum of 24.9°C in January and a maximum of 25.9°C in May.
  • Manufacturers are increasingly considering hire-based equipment procurement strategies to address weather-based uncertainty without limiting purchasing power. Such a factor leads to a major driving demand for data center cooling solutions.
  • The upcoming IT load capacity of the Malaysia data center market is expected to reach around 1.3K MW by 2029. The country's construction of raised floor area is expected to increase to 7.8 million sq. ft by 2029.
  • The country's total number of racks to be installed is expected to reach 388K units by 2029. Cyberjaya-Kuala Lumpur is expected to house the maximum number of racks by 2029.
  • There are close to 25 submarine cable systems connecting Malaysia, and many are under construction. One such submarine cable that is estimated to start service in 2024 is SEA-H2X, which stretches over 5,000 Kilometers with landing points from Kuching, Malaysia.

Malaysia Data Center Cooling Industry Segmentation

Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as data center facilities house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.

The Malaysia data center cooling market is segmented by cooling technology type (air-based cooling, liquid-based cooling, and evaporative cooling) and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users)

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Cooling Technology
Air-based Cooling
Liquid-based Cooling
Evaporative Cooling
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Malaysia Data Center Cooling Market Size Summary

The Malaysia data center cooling market is experiencing robust growth, driven by the increasing demand for efficient and sustainable cooling solutions as the digital landscape expands. The telecom sector's need to deliver content, mobile, and cloud services is a significant factor propelling the market forward. The development of digital infrastructures, such as data centers, is crucial for enabling 5G applications, leading to increased investments and construction of data centers in the country. This surge in data center activity necessitates advanced cooling solutions to manage thermal loads and ensure uninterrupted operations. The adoption of liquid cooling technologies and district cooling systems is gaining traction, offering energy-efficient alternatives to traditional cooling methods and contributing to reduced carbon emissions.

The competitive landscape of the Malaysia data center cooling market is marked by significant consolidation among key players, including Right Power Technology Sdn Bhd, Alfa Laval, and Huawei Technologies Co., Ltd. These industry leaders are actively expanding their market presence through strategic collaborations and innovative solutions. The introduction of advanced cooling technologies, such as hybrid liquid cooling and economizer-based systems, underscores the industry's commitment to sustainability and efficiency. Major companies like AirTrunk, Equinix, and Google are investing in hyperscale data centers, further driving the demand for sophisticated cooling solutions. As cloud storage capacity expands, the need for effective cooling systems to support high-density racks and reduce energy consumption becomes increasingly critical, shaping the future of the data center cooling market in Malaysia.

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Malaysia Data Center Cooling Market Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Volume of Digital Data

      2. 1.2.2 Emergence of Green and Renewable Data Centers

    3. 1.3 Market Restraints

      1. 1.3.1 Adaptability Requirements and Power Outages

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Cooling Technology

      1. 2.1.1 Air-based Cooling

      2. 2.1.2 Liquid-based Cooling

      3. 2.1.3 Evaporative Cooling

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Malaysia Data Center Cooling Market Market Size FAQs

The Malaysia Data Center Cooling Market is projected to register a CAGR of 11.10% during the forecast period (2024-2030)

Right Power Technology Sdn Bhd, Alfa Laval, Huawei Technologies Co., Ltd., Schneider Electric SE and Johnson Controls International PLC (York International) are the major companies operating in the Malaysia Data Center Cooling Market.

Malaysia Data Center Cooling Market Report Snapshots

Malaysia Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)