Market Size of malaysia data center Industry
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 0.71 Thousand MW |
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Market Volume (2029) | 1.36 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 13.73 % |
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Fastest Growing by Tier Type | Tier 1 and 2 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Malaysia Data Center Market Analysis
The Malaysia Data Center Market size is estimated at 0.71 thousand MW in 2024, and is expected to reach 1.36 thousand MW by 2029, growing at a CAGR of 13.73%. Further, the market is expected to generate colocation revenue of USD 838 Million in 2024 and is projected to reach USD 2,038.2 Million by 2029, growing at a CAGR of 19.45% during the forecast period (2024-2029).
USD 838.03 Million
Market Size in 2024
USD 2,038.2 Million
Market Size in 2029
34.6%
CAGR (2017-2023)
19.5%
CAGR (2024-2029)
IT Load Capacity
713.76 MW
Value, IT Load Capacity, 2024
Cyberjaya is a major hotspot and holds the highest share of IT load capacity. The new national strategic initiative to encourage and attract companies, and investments to digital economy, thus, increasing use of data in data centers.
Total Raised Floor Space
Sq. Ft. 4.07 M
Volume, Raised Floor Space, 2024
The country's total raised floor area is expected to increase to 7.7 million sq. ft by 2029. YTL Power International Berhad and GDS Holdings signed a partnership to develop 168 MW of DC facility, at the YTL Green Data Center Park in Johor.
Installed Racks
203,931
Volume, Installed Racks, 2024
The country's total number of installed racks is expected to reach 388,017 units by 2029. Cyberjaya-Kuala Lumpur is expected to house the maximum number of racks by 2029.
# of DC Operators & DC Facilities
18 and 64
Volume, DC Facilities, 2024
Tier 3 holds major share and Cyberjaya hosts the maximum number of tier 3 data centers in the country, with a share of 70.6% and there are 12 data center facilities currently under construction in Malaysia.
Leading Market Player
18.4%
Market Share, VADS BERHAD (TM One), 2023
VADS BERHAD (TM One) held a market share of 18.4%. The company provides an industry-low PUE of 1.8. Two of its facilities have a twin core data center with a low latency of <4ms.
Tier 3 data centers accounts for majority market share in 2023, it is the fastest growing in forecasted period
- The tier 1 & 2 segment of the Malaysian data center market reached an IT load capacity of 0.59 MW in 2021 and then grew to 2.39 MW in 2022. The capacity is expected to reach 3.59 MW by 2029, recording a CAGR of 5.99%. However, the tier 3 segment recorded an IT load capacity of 257.85 MW in 2021. The capacity is anticipated to grow from 457.66 MW in 2022 to 1,379.11 MW by 2029, registering a CAGR of 17.07%. The tier 3 segment has a higher growth rate than all other tiers.
- A tier 3 data center is concurrently maintainable, allowing for any planned maintenance activity of power and cooling systems to take place without disrupting the operations of computer hardware located in the data center. Most telecom operators are focusing on establishing tier 3 facilities in the country as they prevent uneven disturbances. The development of digital infrastructure, such as data centers, is central to enabling 5G applications. Various investors are also signing agreements to launch 5G services in the country. For instance, in November 2022, Malaysian telcos Celcom and DiGi approved a merger agreement. Once the two companies are fully merged, the new entity will be one of the largest carriers in Malaysia, with over 20 million subscribers.
- The tier 4 data center segment is expected to remain stagnant in the near future but will see increased opportunities over the coming years. Currently, TelcoHubeXchange and Regal Orion Sdn Bhd are the only companies with Tier 4 certified facilities in Malaysia.
Malaysia Data Center Industry Segmentation
Cyberjaya-Kuala Lumpur are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
- The tier 1 & 2 segment of the Malaysian data center market reached an IT load capacity of 0.59 MW in 2021 and then grew to 2.39 MW in 2022. The capacity is expected to reach 3.59 MW by 2029, recording a CAGR of 5.99%. However, the tier 3 segment recorded an IT load capacity of 257.85 MW in 2021. The capacity is anticipated to grow from 457.66 MW in 2022 to 1,379.11 MW by 2029, registering a CAGR of 17.07%. The tier 3 segment has a higher growth rate than all other tiers.
- A tier 3 data center is concurrently maintainable, allowing for any planned maintenance activity of power and cooling systems to take place without disrupting the operations of computer hardware located in the data center. Most telecom operators are focusing on establishing tier 3 facilities in the country as they prevent uneven disturbances. The development of digital infrastructure, such as data centers, is central to enabling 5G applications. Various investors are also signing agreements to launch 5G services in the country. For instance, in November 2022, Malaysian telcos Celcom and DiGi approved a merger agreement. Once the two companies are fully merged, the new entity will be one of the largest carriers in Malaysia, with over 20 million subscribers.
- The tier 4 data center segment is expected to remain stagnant in the near future but will see increased opportunities over the coming years. Currently, TelcoHubeXchange and Regal Orion Sdn Bhd are the only companies with Tier 4 certified facilities in Malaysia.
| Hotspot | |
| Cyberjaya-Kuala Lumpur | |
| Rest of Malaysia |
| Data Center Size | |
| Large | |
| Massive | |
| Medium | |
| Mega | |
| Small |
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Absorption | |||||||||||||||||
| Non-Utilized | |||||||||||||||||
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Malaysia Data Center Market Size Summary
The Malaysia Data Center Market is experiencing significant growth, driven by the increasing demand for digital infrastructure to support advancements like 5G technology. The market is characterized by a diverse range of data center tiers, with tier 3 facilities showing the most robust expansion due to their ability to maintain operations during planned maintenance. This growth is further fueled by the strategic focus of major telecom operators on establishing tier 3 facilities, which are crucial for supporting uninterrupted services. The development of data centers is integral to Malaysia's digital transformation, with major players such as Celcom and DiGi merging to enhance their market presence and subscriber base. The market landscape is fragmented, with key companies like Bridge Data Center, Keppel DC REIT Management, and NTT Ltd playing pivotal roles in shaping the industry's future.
The market's expansion is also reflected in the increasing colocation revenue, which is expected to grow substantially over the forecast period. The rise in smartphone penetration and mobile internet usage in Malaysia underscores the growing need for data centers to support the surge in digital consumers and e-commerce transactions. The government's initiatives to roll out 5G technology, alongside partnerships with global firms like Ericsson, are set to further accelerate the market's growth. Additionally, investments in new data center facilities, such as NTT Ltd's Cyberjaya 6, highlight the ongoing commitment to enhancing Malaysia's digital infrastructure. These developments are expected to have a significant positive impact on the country's economy, creating jobs and boosting GDP.
Malaysia Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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1.1 Hotspot
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1.1.1 Cyberjaya-Kuala Lumpur
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1.1.2 Rest of Malaysia
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1.2 Data Center Size
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1.2.1 Large
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1.2.2 Massive
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1.2.3 Medium
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1.2.4 Mega
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1.2.5 Small
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1.3 Tier Type
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1.3.1 Tier 1 and 2
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1.3.2 Tier 3
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1.3.3 Tier 4
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1.4 Absorption
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1.4.1 Non-Utilized
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1.4.2 Utilized
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1.4.2.1 By Colocation Type
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1.4.2.1.1 Hyperscale
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1.4.2.1.2 Retail
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1.4.2.1.3 Wholesale
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1.4.2.2 By End User
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1.4.2.2.1 BFSI
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1.4.2.2.2 Cloud
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1.4.2.2.3 E-Commerce
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1.4.2.2.4 Government
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1.4.2.2.5 Manufacturing
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1.4.2.2.6 Media & Entertainment
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1.4.2.2.7 Telecom
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1.4.2.2.8 Other End User
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Malaysia Data Center Market Size FAQs
What is the current Malaysia Data Center Market size?
The Malaysia Data Center Market is projected to register a CAGR of 13.73% during the forecast period (2024-2029).
Who are the key players in Malaysia Data Center Market?
Bridge Data Center (Chindata Group), Keppel DC REIT Management Pte. Ltd, NTT Ltd, VADS BERHAD (TM One) and YTL Data Center Holdings Pte Ltd (YTL Power International Berhad) are the major companies operating in the Malaysia Data Center Market.
